In total, 4,121 apartments were sold in Tbilisi in March 2026, according to the Public Register. Of these, 2,068 objects were sold on the secondary market, which is 26.9% more than in March last year. The primary market, whose data is delayed due to late registration of transactions, showed an increase of 36% year-on-year to 2,053 apartments. However, an operational survey of developers, reflecting real current trends, indicates a slowdown in demand: growth was only 8.6% compared to last year. In total, 10,907 transactions were registered in Tbilisi in the first quarter of 2026, and the total turnover of transactions reached 958 million US dollars, which is 23.1% more than a year ago.
What about the offer? There is a tendency to normalize after periods of increased activity. In March 2026, construction permits were issued for 17 residential projects with a total living area of 150,241 square meters, which is 6.7% less than in March last year. It is noteworthy that the area of permits issued has been decreasing in annual terms for the sixth month in a row. In the first quarter as a whole, this figure decreased by 29.9% compared to the same period in 2025.
Housing prices continue to rise, albeit at a moderate pace. In March, the average price in the primary market increased by 0.4% compared to the previous month and reached 1,403 USD per sq. m. In the secondary market (for new houses built with permits since 2013), the price increased by 0.1% and amounted to 1,305 USD per sq. m. Rental rates for a standard apartment of 50 m260 sq.m. m remained at $9.9 per square meter, down 1.2% over the month. The yield on rental housing remains at a high level of 8.5%.
The highest prices in the primary market of Tbilisi are recorded in the districts of Vake and Saburtalo, while the most affordable housing is offered on the outskirts. Apartments are most actively sold in the middle price segment, and two- and three-bedroom apartments are in the highest demand.
A significant proportion of buyers are foreign nationals. Although the report does not provide an exact breakdown for March, there has previously been steady activity from citizens of Russia, Ukraine, Belarus, as well as countries in the Middle East and Europe. This continues to support the market, especially in the new housing segment.
The growth of construction costs remains an important factor. In annual terms, the overall construction cost index increased by 6.2%, with salaries rising the most (by 13.9%) and the cost of materials (by 3%). This puts additional pressure on final housing prices and may deter the launch of new projects in the context of reduced permits.
Galt & Taggart analysts note that the Tbilisi housing market is gradually returning to normal after periods of high demand. Lower new construction volumes and moderate price increases create a more predictable environment for buyers and developers. However, high rental yields and continued demand, including from foreigners, continue to support the market at a stable level.
Source: Galt & Taggart
