Table of Contents
1. Introduction – Why Investors Are Focusing on Tbilisi Real Estate Market
Tbilisi, the capital of Georgia, has transformed from a hidden gem into one of Europe’s most attractive real estate investment destinations. With property prices still significantly lower than major European cities, combined with rental yields reaching up to 8–12%, the city presents a rare opportunity for investors looking for strong cash flow and capital appreciation.
Georgia’s open economy, simple property ownership laws for foreigners, fast-growing tourism sector, and rising demand for rental housing have made Tbilisi a strategic hotspot for real estate investment.
2. Overview of the Tbilisi Real Estate Market in 2025
Tbilisi’s property market is experiencing rapid transformation, driven by:
- Population growth & urban migration from other Georgian cities.
- Record number of foreign buyers—especially from the UAE, Israel, Europe, and Asia.
- Growing expat & digital nomad communities.
- Tourism recovery post-pandemic, surpassing 7.6 million annual visitors.
According to the National Statistics Office of Georgia, property transactions in Tbilisi increased by 15–20% year-on-year, reflecting strong investor confidence.
3. Rising Property Prices – Capital Growth and Appreciation
Property prices in Tbilisi Real Estate Market have been experiencing consistent growth:
| Year | Average Price per m² (USD) | YoY Growth |
|---|---|---|
| 2020 | $850 | — |
| 2021 | $900 | +6% |
| 2022 | $1,050 | +15% |
| 2023 | $1,200 | +14% |
| 2024 | $1,350 | +12% |
| 2025 | $1,500–1,600 | +10–15% |
Some districts like Vake, Mtatsminda, and Saburtalo saw price increases of 20–25% in the last two years.
Why this matters for investors:
- Properties bought at $1,000–1,200 per m² two years ago are now worth $1,500–1,600 per m².
- Renovated Old Town apartments sell at €2,000–€2,500 per m² after refurbishment.
- Demand remains high due to limited high-quality housing and increasing expat presence.
4. High Rental Yields – A Major Attraction
Tbilisi offers some of the highest rental yields in Europe, especially when combining capital appreciation with short-term rental income.
Long-Term Rental Yields
| District | Yield (Yearly) |
|---|---|
| Saburtalo | 7–9% |
| Vake | 6–7% |
| Didube | 8–10% |
| Isani | 7–9% |
Short-Term Rental (Airbnb) Yields
- Occupancy rates in central Tbilisi reach 70–85% annually.
- Monthly income from a well-managed Airbnb can reach $1,200–$2,500, depending on location.
- Annual gross yields often exceed 12–18% in tourist-heavy areas like Old Tbilisi.
5. Top Districts to Invest in Tbilisi
| District | Avg Price/m² | Rental Yield | Why Invest? |
|---|---|---|---|
| Vake | $1,600–2,000 | 6–7% | Premium zone, embassies, high demand from diplomats and expats. |
| Saburtalo | $1,200–1,400 | 7–9% | Universities, tech offices, young professionals, metro access. |
| Mtatsminda/Old Town | $1,800–2,500 | 10–12% (Airbnb) | Tourism hotspot, historic charm, perfect for short-term rentals. |
| Didube | $1,000–1,200 | 8–10% | Transport hub, upcoming development, affordable pricing. |
| Isani/Krtsanisi | $900–1,200 | 7–9% | Growing expat hub, modern residential complexes. |
6. Tourism, Digital Nomads & Growing Tenant Demand
- Over 7.6 million tourists visited Georgia in 2024 — a new record.
- Tbilisi ranked among the top 5 digital nomad destinations in Europe.
- Georgia offers a 1-year visa-free stay for over 94 countries.
- Hundreds of startups, co-working spaces, Airbnb-based businesses, and expat communities have emerged in areas such as Vera and Sololaki.
7. Legal & Tax Advantages for Foreign Investors
One of Tbilisi’s strongest advantages is its investor-friendly legislation.
✅ Foreigners can own property 100% freehold
✅ 1-day property registration via the Public Service Hall
✅ Low property tax (0–1%) depending on income
✅ Flat 5% tax on rental income (optional 20% if operating as a business)
✅ No inheritance tax, no stamp duty, and no capital gains tax after 2 years of ownership
- Submit passport
- Sign purchase agreement at Public Registry
- Pay registration fee (~$20)
- Receive ownership certificate in 1–3 business days
Enquiry for a free consultation
8. Tbilisi vs Global Real Estate Markets (Best Value in Europe)
| City | Avg Price/m² | Rental Yield | Market Status |
|---|---|---|---|
| Tbilisi | $1,000–1,600 | 8–12% | Emerging, high growth |
| Dubai | $3,000–6,000 | 5–7% | Mature, expensive |
| Budapest | $3,500–4,500 | 4–6% | Stable, slower growth |
| Prague | $4,000–7,000 | 3–4% | Saturated |
| Berlin | $5,000+ | 2–3% | Highly regulated |
| Paris | $10,000+ | 2–3% | Overvalued |
9. Risks & Challenges to Be Aware Of
No market is risk-free. Smart investors should consider:
- Unregulated Airbnb market (could face future regulation)
- Currency fluctuation – Georgian Lari (GEL) vs USD/EUR
- Pre-construction purchase risks – choose reliable developers only
- Earthquake & infrastructure concerns in older Soviet-era buildings
- Rapid tourism dependence – drop in tourism affects rental income
10. How Novaturient Joint Ventures Helps Investors Profit
Novaturient Joint Ventures helps investors go beyond just buying property – it helps them acquire, renovate, rent, and scale profits intelligently.
What Makes It Different?
| Service | Description |
|---|---|
| Property Sourcing | Identify undervalued or high-potential assets in prime districts |
| Joint Venture Model | Partner with investors to co-own and share profits from property assets |
| Renovation & Interior Upgrade | Transform outdated apartments into luxury Airbnb-ready units |
| Legal & Registration Assistance | Handle property purchase, tax registration, contracts |
| Property Management | Airbnb listings, tenant handling, maintenance & yield optimization |
- Purchased apartment in Saburtalo: €95,000
- Renovation & furnishing: €15,000
- Airbnb net income per month: €1,300
- Annual ROI: 14–15%
- Property value after renovation: €130,000
11. Conclusion – Why Now Is the Time to Invest
Tbilisi offers a rare combination of:
✔ Low property prices compared to European capitals
✔ High rental yields and increasing tourism demand
✔ Investor-friendly tax laws and 100% foreign ownership
✔ Rapid capital growth and infrastructure development
✔ A strategic location between Europe and Asia
With rising prices and growing international interest, the best time to invest in Tbilisi real estate is now—before the market fully matures.
