Georgia real estate: Low-risk, high-return opportunities
ALBAWABA - Real estate—particularly the housing sector—remains one of the most significant pillars of Georgia's economy. In 2024, real estate development and related construction services accounted for 18% of the country's GDP. Also Read Trump claims nearly $500 Million amid real state fraud allegations
That same year, the total market value of apartments sold in the capital city alone reached US$3.1 billion (a 7.1% year-on-year increase and a 17.7% rise compared to 2022), with the primary market's share growing steadily.
Demand for housing in Georgia is largely driven by domestic factors, including relatively large household sizes compared to peer countries in Europe, increasing urbanization, and the need to replace a substantial stock of old and depreciated buildings with newly constructed apartments that meet modern seismic, life, and fire safety standards. This demand is further supported by Georgia's strong economic performance (9.4% GDP growth in 2024) and moderate inflation: 1.9% in 2024 (eop). Additionally, in recent years, external factors—such as the inflow of migrants from Russia and Ukraine—have increased demand for rent-generating assets, fueling significant growth in the housing markets of Tbilisi and Batumi.
Despite the fading impact of such exogenous factors in 2025, the housing market has continued to grow. In January and February 2025, the market expanded by 4.5% year-on-year and 13.6% compared to the same period in 2023.
A survey of 17 major developers (covering 85 projects) conducted by leading research firm Galt & Taggart revealed exceptionally high absorption rates: 78% of stock has been sold in projects scheduled for completion in 2025, 44% in projects set to complete in 2026, and 43% in those planned to be finished for 2027–2028.
Real estate prices continue to rise, particularly in the primary market segment. In February 2025, the average primary market price in Tbilisi increased by 6% year-on-year and by 23% compared to February 2023.
It is no surprise, then, that real estate—and the housing market in particular— is among the most attractive sectors in Georgia for foreign direct investment.Golden Fleece Investments, one of Georgia's pioneering real estate investment funds, announced today that in its very first year of operations it distributed US$1.8 million to shareholders, generating a 20% IRR. According
to Dr. Gil Feiler, Chairman of the Supervisory Board, 'Golden Fleece Investments, with its strong and experienced management team, is an excellent vehicle for investors to tap into this growth.'
In another major development, EMAAR Group—a globally renowned real estate developer from the UAE—announced in January 2025 its intention to invest an unprecedented US$6 billion in Georgia's real estate sector. A corresponding memorandum was signed between Levan Davitashvili, Minister of Economy of Georgia, and Mohamed Ali Rashed Alabbar, Founder and Managing Director of EMAAR Group, during the visit of the
Prime Minister of Georgia to Abu Dhabi on January 27, 2025.
With strong leadership, a stellar economic record, and a stable environment amid regional tensions, Georgia remains a hotspot for foreign investors— especially in the real estate sector.
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