🗝️ Affordability in Georgia

Real Estate Affordability in Georgia

The Real Estate Affordability indicator measures the relationship between average real estate prices and local income levels – typically expressed as the price-to-income ratio (PTI): number of annual net incomes needed to purchase an average dwelling. Georgia has a PTI of approximately 4× – one of the most attractive affordability ratios in the region, particularly for international buyers.

Price Overview: Tbilisi and Beyond

Tbilisi (capital, 2024 figures):

• City center (Vera, Vake, Old Town): ~USD 1,200–2,500/m²
• Good residential areas (Saburtalo, Gldani): ~USD 700–1,200/m²
• Periphery: ~USD 400–700/m²

Batumi (Black Sea coast):

• Seafront new developments: ~USD 1,000–2,500/m² (many hotel-apartment hybrids)
• Residential: ~USD 600–1,200/m²

Other cities (Kutaisi, Rustavi):

• USD 300–600/m² – significantly cheaper

Income-Price Relationship in Tbilisi

For international buyers with Western incomes, the effective PTI is approximately 4× – making Tbilisi highly competitive compared to other European capitals.

Rapid Price Increases 2020–2023

Tbilisi real estate prices increased ~40–60% between 2020 and 2023, driven by:

• Influx of Ukrainian war refugees and Russian relocatees (2022)
• Growing international remote worker community
• Limited supply in central, desirable neighborhoods
• Tourism growth supporting short-term rental demand

Since 2024, the market has partially stabilized, but prices remain elevated compared to 2019 levels.

Conclusion: For international buyers with Western purchasing power, Georgia offers outstanding value. The combination of low transaction costs, 0% CGT after 2 years, and ~9% rental yields makes Georgian real estate genuinely attractive.

This article was created on April 14, 2026