Tbilisi’s real estate market has consistently proven to be a solid investment, with a substantial number of investors reporting significant returns. The market shows no signs of slowing down, offering a rare combination of growth potential, low risk, and favorable conditions for both local and foreign investors.
Tiniko Pitskhelauri, Sales Director of ARKAN Property, highlights what Tbilisi’s real estate market offers to investors
Why Invest in Tbilisi Real Estate?
Real estate has become one of the most promising investment sectors in Georgia, with Tbilisi standing out as the most popular destination. The primary reason lies in the city’s strategic location and the market’s consistent price growth.
Over the last decade, property prices per square meter in Tbilisi have increased 6-7 times, and the upward trend continues. The price, however, varies depending on the neighborhood, making location a key factor for high returns.
Moreover, Georgia’s integration into international real estate platforms allows property owners to maximize rental income by appealing to foreign tenants and tourists—providing higher profits than domestic rentals.
Key Reasons to Invest in Tbilisi Real Estate
- Excellent Rental Yields
Tbilisi offers gross rental yields of up to 15% for well-located and well-marketed properties. Given the affordable property prices compared to European markets, investors can achieve excellent returns with relatively low initial investment.
- No Property Ownership Tax.
Georgia has a 0% property tax for ownership. Additionally, if you sell your property after holding it for more than two years, no capital gains tax is applied. However, if you sell it within two years, a 20% tax is levied on profits.
- Affordable Property Prices Compared to Neighboring Countries
Compared to European cities and neighboring regions, Tbilisi offers some of the lowest real estate prices for high-quality properties, making it an attractive option for investors looking for value.
- Fast and Easy Property Registration
Georgia ranks 1st in the world for real estate registration efficiency, requiring only one day to complete a transfer with basic documentation. It also ranks 3rd in easy lending, 7th for low taxes, and 16th for investor protection.
- Path to Residency
Buying property in Georgia allows foreign investors to qualify for residency, granting legal stay in the country and the ability to manage their property directly.
Georgia also offers a cost-effective lifestyle and ranks as one of the safest and most welcoming countries, encouraging long-term stays by foreign visitors and expats. Many residents from neighboring countries have already moved to Tbilisi, contributing to the rising real estate demand.
A Reliable, High-Growth Market
With affordable property prices, high rental yields, easy ownership processes, and the potential for residency, Tbilisi’s real estate market offers a unique investment opportunity. The city’s steady price increases, coupled with the booming tourism industry, guarantee high returns and secure long-term growth.
If you’re seeking a high-potential, low-risk investment, Tbilisi real estate may be the perfect choice, providing financial returns and the added benefit of legal residency in one of the fastest-growing regions.
