Georgia's Tbilisi New-Home Prices Rise 5.9% in Third Quarter

Prices of new homes in Tbilisi rose 1.5% in the third quarter of 2026 from the previous quarter and 5.9% from a year earlier, the National Statistics Office of Georgia (Geostat) said on 23 October 2026. The index now stands 66.2% above its 2020 average.

Geostat's Residential Property Price Index covers the market for new residential property in Tbilisi, both flats and detached houses, and is calculated in lari. Flats rose 1.2% on the quarter and 5.6% on the year, while detached houses gained 2.7% and 7.0%. Against the 2020 average, flats are up 63.1% and houses 72.7%.

Faster than the spring

The annual pace has picked up. In the second quarter the index rose 0.9% on the quarter and 4.9% on the year, with flats up 4.8% and houses up 5.5% year on year, and the index stood 63.8% above the 2020 average. The third-quarter rise of 1.5% is larger, and the two segments have parted: in the spring both flats and houses rose 0.9% on the quarter, while in the summer houses outpaced flats by 1.5 percentage points.

The release also publishes median asking prices per square metre for new flats and detached houses by Tbilisi district, and for flats by finish, in green, white and black frame. Those figures are offer prices, scraped from the Myhome.ge and SS.ge listings sites, Geostat notes, rather than transaction prices.

What the market's analysts expected

Galt & Taggart, the investment banking arm of Lion Finance Group, put primary-market price growth at 6.1% year on year in May and said it expected growth to stay within 5% to 7%, Trend reported in August. "Price growth has stabilized," the firm said. It put Tbilisi's gross rental yield at 8.4% in May 2026, against a long-term average of about 8% to 9%, with average rents of about $10 per square metre.

The same analysis gave a picture of who is buying. Georgians accounted for 76% of Tbilisi primary sales in 2026, Israelis for 11% and Russians for 3%. In Batumi, Georgians made up 37% of primary buyers, Europeans 18%, buyers from Ukraine, Russia and Belarus 16% and Israelis 10%.

Costs on the supply side are rising more slowly than prices. Geostat's construction cost index was up 3.9% year on year in June, Trend reported on 22 August, with transport, fuel and electricity costs up 16.6% and the residential construction index up 3.5%. New supply keeps coming: Trump Tower Tbilisi launched this month as the anchor of a $2bn downtown district.

Why it matters

A 5.9% annual gain is only just ahead of consumer inflation, which reached 5.6% in September, and it comes with the National Bank of Georgia holding its refinancing rate at 8.25%, so mortgage costs are not falling. For developers the signal is mixed: prices are firm and yields are near their long-run average, but construction output fell in August as growth slowed to 6.3%. The strongest demand is now in detached houses, a smaller segment than flats but the one with the faster price growth in both the quarterly and annual series.

What to watch

• Geostat's fourth-quarter index, due in late January 2027 on the pattern of this year's releases, which will show whether the summer acceleration holds.
• The National Bank of Georgia's next rate decisions, which set the cost of mortgage credit behind the demand.
• Galt & Taggart's monthly primary-market price series, the fastest read on whether growth stays inside the 5% to 7% range the firm forecast.