Real estate developers warn that property prices in Georgia could increase at a faster pace than previously expected in 2026. According to Shio Khetsuriani, CEO of Archi, demand in the sector has surged sharply this year, which could push price growth beyond the usual annual range.
Khetsuriani told BMG that residential property prices in Georgia have been rising steadily by 4–6% annually in recent years. However, this year’s unusually strong demand - combined with rising construction costs - could accelerate price hikes.
He explained that the cost of construction is being driven up by more expensive energy resources and disrupted logistics caused by the ongoing conflict in the Middle East. Transportation costs, fuel prices, wage growth in the construction sector and higher prices on imported materials all contribute to rising project expenses.
“Demand determines prices, but rapid spikes in demand don’t always translate immediately into higher prices. Still, since real estate prices have been growing steadily by 4–6% annually, strong demand this year may push prices even higher,” Khetsuriani said.
“Rising fuel costs, logistics challenges, higher labor wages and increased transportation costs for imported materials - all of these factors increase construction costs. When demand and costs both rise, property prices inevitably follow.”
According to Colliers Georgia, 10,511 apartments were sold in Tbilisi in Q1 2026 , a 16.7% annual increase. In March alone, 3,913 transactions took place, marking a 30.9% year-on-year growth, reflecting the intensifying demand in the housing market.
