Tbilisi’s residential real estate market is continuing to evolve. While demand remains strong, recent market data points to more than just an increase in apartment transactions. Changing buyer preferences, growing rental demand and a more limited pipeline of new construction permits are shaping a market in which location, quality and long-term value are becoming increasingly important.
According to Galt & Taggart’s September 2026 Residential Real Estate Market Watch, 35,033 residential property transactions were registered in Tbilisi during the first nine months of 2026. This represents an increase compared to the same period last year, while the total market value reached approximately USD 3.2 billion, growing by 26.3% year-on-year.
A market supported by consistent demand
Demand in Tbilisi’s residential market remains strong across both primary and secondary segments.
In September 2026, a total of 4,330 apartments were sold, representing an 8% annual increase. Primary market transactions reached 2,167 units, while secondary market sales amounted to 2,163 apartments.
The primary market has demonstrated particularly positive momentum. According to Galt & Taggart’s survey of selected developers, cumulative apartment sales in the primary market increased by 20.6% year-on-year during the first nine months of 2026.
These figures indicate sustained interest in residential property and continued activity among buyers considering newly developed homes.
Buyers are moving towards the midscale segment
One of the most interesting developments is the changing distribution of demand across price segments.
The share of budget apartments in total sales declined from 57.5% in the first nine months of 2025 to 48% in the same period of 2026. Meanwhile, the midscale segment increased from 36.9% to 44.1%.
This shift suggests a growing role for the mid-market segment in Tbilisi’s residential property landscape.
For developers, this creates an important opportunity: delivering homes that balance affordability, functional layouts, convenient locations and a comfortable living environment.
The data also shows that medium-sized apartments, ranging from 51 to 80 square metres, accounted for 53.9% of all apartment sales during the first nine months of 2026, making this the largest apartment-size category.
Rental demand strengthens the investment case
Tbilisi’s rental market also recorded notable growth in September.
The average rental price for a 50–60 sq.m. new apartment reached USD 11.3 per square metre, an 8.6% monthly increase. Galt & Taggart attributes this rise partly to seasonal demand at the beginning of the academic year.
The estimated rental yield reached 9.4%, reinforcing the role of residential property as an investment option.
For buyers considering property not only as a home but also as an income-generating asset, rental potential, accessibility and the surrounding infrastructure are important factors to evaluate.
A changing supply landscape
While demand remains solid, the supply side presents another important market trend.
The total living area covered by residential construction permits issued in Tbilisi declined by 7.6% year-on-year during the first nine months of 2026. In September alone, the permitted area decreased by 39.6% compared to September 2025.
This development highlights the importance of understanding the future supply pipeline when evaluating residential property.
The availability of new developments, their locations, construction quality and the environments they create will all contribute to how different residential areas evolve over time.
The next chapter of residential development: Beyond the apartment
As Tbilisi’s real estate market matures, the conversation is increasingly extending beyond apartment prices and square metres.
Today’s residential developments can offer more than individual living spaces. Green areas, recreational facilities, sports infrastructure, convenient access to essential services and well-planned communal environments contribute to the overall residential experience.
These elements also help shape the identity and long-term appeal of a neighbourhood.
At Arkan Property, we agree, that successful residential development is about creating places where people can live comfortably, connect with their surroundings and enjoy a better quality of everyday life.
Our approach reflects this broader vision: combining residential spaces with thoughtfully planned environments, green areas and amenities that respond to the needs of modern communities.
Looking ahead
Tbilisi’s residential market continues to demonstrate resilience, supported by active demand, growing transaction values and an established rental market. At the same time, changing buyer preferences and developments in the construction pipeline are creating new considerations for both buyers and developers.
The next stage of market development will not be defined by the number of apartments alone. The quality of residential environments, the value of location and the ability to respond to evolving lifestyles will play an increasingly important role in shaping Tbilisi’s urban landscape.
For the real estate sector, this represents an opportunity to think beyond buildings and focus on creating destinations with lasting value.