According to the May report of the analytical department of Galt & Taggart, the housing market in Tbilisi remains multidirectional dynamics. The secondary segment shows steady sales growth, while the primary segment has almost stopped in sales volumes. At the same time, the supply of new facilities has been declining for the eighth month in a row. Prices for new buildings continue to grow moderately, while in the secondary market, after a sharp jump in April, they have moved to a stabilization phase.
Demand and sales
According to the National Public Registry Agency (NAPR), 3,748 apartment purchase and sale transactions were registered in Tbilisi in May 2026. This is 11.1% more than in May last year (3,374). At the same time, the total cost of housing sold in the first five months of 2026 reached 1.6 billion US dollars, which is 21.9% higher than in the same period of 2025. A total of 18,296 transactions were completed from January to May inclusive.
The key feature of May is a sharp divergence in the dynamics of the primary and secondary segments:
● The secondary markethas shown significant growth +12.4% year-on-year, to 1,924 apartments. This is the fifth highest monthly figure since 2023. The increase in 5 months was 14.7%.
● The primary market grew by 9.7% according to the registry;(up to 1,824 apartments), however, these figures are distorted due to delays in registering transactions. A more accurate picture is provided by an operational survey of developers conducted by Galt & Taggart (covering about 50% of all primary projects). According to this survey, the number of apartments sold on the primary market in May increased by only 2.5% compared to May last year. At the same time, the total area sold decreased, which indicates a decrease in the average size of apartments purchased. Analysts attribute this to the effect of a high base in 2025 and the adaptation of buyers to more expensive square meters. Over the past 5 months, the total number of apartments sold in the primary market has increased by 22.1%, mainly due to a strong first quarter.
Offer
The volume of new construction continues to decrease. In May 2026, permits were issued for 23 residential projects with a total living area of 165,484 square meters, which is 18.4% less than in Last May. The area of permits issued has been decreasing in annual terms for the eighth month in a row, which indicates a steady normalization of supply after overheating in previous years. In the first five months of this year, the total area for approved projects decreased by 34.4%.
Prices
The price dynamics in May turned out to be heterogeneous:
The average price in the primary market increased by0.3%compared to April and reached USD 1,412 per sq. m. The growth remains moderate, which confirms the balance of supply and demand in this segment.
● In the secondary market;(for new homes built with permits since 2013), on the contrary, the average price decreased by 0.3% over the month, to $1,366 per square meter. This is a partial correction after a sharp 5.0% jump in April, which analysts attributed to temporary factors. Thus, the secondary market is returning to a smoother dynamic.
Rent and profitability
Rental rates remained almost unchanged in May: the average rental price for a 50-square-foot apartment is 60 square meters. m amounted to $9.9 per square meter, which is 0.2% lower than the April level. The yield on rental housing remains at a high level of 8.4% per annum, which significantly exceeds deposit rates in dollars (2.4%) and in lari (9.7%). This makes investments in residential real estate in Tbilisi still attractive.
Districts
Traditionally, the largest number of transactions occurred in the districts of Didi Digomi, Saburtalo and Samgori. In terms of prices in the primary market, Vaca is the leader with about $ 3,150 per sq. m. The most affordable new buildings in your neighborhood;(about $1,071 per square meter).
Sales to foreigners
Foreigners collectively accounted for about 25% of the total number of home buyers (Israelis 11%, Russians 3%, citizens of other countries 11%).
It is noted that the share of foreign citizens in the sales structure has remained virtually unchanged since 2025, when the proportion was as follows: Israelis - 10%, Russians - 3%, citizens of other countries - 11%.
Source: Galt& Taggart
