In July 2026, Tbilisi’s residential real estate market—in terms of total sales volume—recorded a substantial 24% increase, while construction costs rose by 3%.
On September 7, the National Statistics Office of Georgia (Geostat) published the construction cost index. A week earlier, TBC Capital released its monthly review of the Tbilisi residential real estate market. Data from both sources reflect figures for July 2026.
According to TBC Capital, between January and July 2026 inclusive—across the first seven months of the year—the volume of Tbilisi’s real estate market reached $2.37 billion. This represents a 24% increase compared to the same period last year.
- In July, secondary market transactions (“old apartments”) continued to dominate, acting as “one of the key drivers of solid annual growth.”
- In July alone, apartment sales volume reached $395 million—up 24% year-on-year.
- A total of 4,409 apartments were sold in Tbilisi in July alone, exceeding the figure for the same period last year by 22%.
Over the first seven months, 26,772 properties were sold, representing a 20% increase in the number of apartments compared to the corresponding period of the previous year.
In other words, the market expansion in July was driven primarily by an increase in the number of apartments sold, rather than a sharp spike in prices.
Over the seven-month period, the average apartment sale price stood at $1,348 per square meter, which is 4% higher than last year’s level.
Additionally, potential market supply—measured by residential floor space under issued building permits—increased by 1% during this period, reaching approximately 711,000 square meters.
According to Geostat, the construction cost index rose by 0.8% in July 2026 compared to the previous month and by 4.3% in annual terms.
This indicates that in July 2026, construction costs grew by an average of 4.3% compared to the same month last year, and by 0.8% compared to June 2026.
The statistical agency noted that the monthly change was “largely driven by a 6.4% increase in the average monthly nominal wage of hired workers in the construction sector.”
In annual terms, the index increase was mainly determined by a “15.2% rise in the costs of transportation, fuel, and electricity categories within the construction sector.”
Compared to February 2022, the construction cost index has increased by 30.3%.
