Tbilisi apartment market recovers in June, showing increased sales
In a significant turn of events, Tbilisi's real estate market experienced a remarkable recovery in June 2025. This revival was marked by a surge in apartment sales and prices, with a notable growth of 16.6% in old apartment sales alone.
According to recent data, a total of 3,363 apartment transactions were recorded in Tbilisi, marking an 11% increase year-on-year. This trend was also observed in new project transactions, which increased by 8.8%.
The growth in the real estate market was partly driven by a low base effect following a drop in June 2024. However, several economic and geopolitical factors have contributed to this recovery.
One of the key drivers has been the strengthened economic cooperation with China. In 2025, Georgia deepened its strategic partnership with China through updated free trade agreements and increased Chinese investments. These efforts have bolstered foreign investment inflows into Georgia, including the real estate sector in Tbilisi.
The involvement of China's China Communications Construction Company in projects like Anaklia Port has enhanced Georgia's logistics positioning between Europe and Asia. This likely supports demand for residential and commercial properties in Tbilisi by increasing economic activity and attracting business-related population growth.
Financial cooperation and banking developments have also played a significant role. The memorandum of understanding between the National Bank of Georgia and the People's Bank of China, plus plans for Chinese acquisition of Georgian banks like Liberty Bank, facilitate easier bilateral transactions and investment flows. This financial environment supports increased real estate transactions and price appreciation.
Georgia's resilience against geopolitical uncertainties, such as the hostile European Parliament report, has also encouraged confidence in the local market, including real estate. The country's alignment with China and access to the Chinese interbank payment system CIPS strengthens its financial stability.
In addition, general market trends noted by PwC support the rising apartment sales and prices in Tbilisi. According to PwC’s Real Estate Monitor for June 2025, residential real estate in general has shown recovery during a difficult market environment, with valuation indicators for residential properties increasing compared to the end of 2024.
Prices for old apartments in the city center rose by 9.8%, while in the suburbs, they increased by 10.6%. City center prices for new projects went up by 6.7%, and suburban prices for new projects increased by 9.7%. Prices in the wider center for old apartments increased by 6.1%.
Colliers Georgia is among the entities involved in Tbilisi's real estate market. The total market value of Tbilisi's real estate market increased by 21.5% in June 2025, reaching $253 million.
In conclusion, the recovery and increase in apartment sales and prices in Tbilisi's real estate market in June 2025 result from enhanced economic ties with China, key infrastructure projects, improved financial cooperation facilitating investment, and an otherwise resilient residential market as indicated by PwC's monitoring.
Investors looking to capitalize on the recovery of the Tbilisi real estate market might find opportunities in the rising apartment prices, as the market experienced a growth of 16.6% in old apartment sales alone in June 2025. This surge was partly fueled by the increased Chinese investments in Georgia, following the strengthened economic cooperation between the two countries. The financial environment, supported by the memorandum of understanding between the National Bank of Georgia and the People's Bank of China, further facilitates investment flows into the real-estate sector.
