In Mar-26, primary market demand cooled, but still recorded an annual increase, due to low base effect. On the contrary, secondary market sales reached their second-highest level since 2023. On the supply side, the living area of issued permits declined annually for the sixth consecutive month. Prices continued to rise across both markets with primary market price increasing moderately, supported by strong demand and slower permit issuance.
In Mar-26, total number of sold apartments in Tbilisi, according to the Public Registry data, stood at 4,121 units, of which:
• Sales on the secondary market increased significantly by 26.9% y/y to 2,068 (up 15.1% y/y in 1Q26).
• Sales on the primary market, where data are impacted by delayed registrations, were up 36.0% y/y to 2,053 (up 16.6% y/y in 1Q26). Our real-time survey of developers, which captures current trends on the primary market, shows a slowdown on the primary market demand in Mar-26, although sales were still up 8.6% y/y.
Cumulatively, primary market sales were up 16.9% y/y in 1Q26. This largely reflects a low base effect from last year, driven by domestic political instability in Tbilisi. In total, 10,907 transactions were registered in Tbilisi in 1Q26, bringing the residential market value to US$ 958mn (+23.1% y/y).
In Mar-26, construction permits were issued for 17 residential projects, with total living area reaching 150,241 sq.m (-6.7% y/y). Notably, the living area of issued permits has contracted annually for the 6th consecutive month, signalling a normalization after previously elevated levels. Overall, living area of permits in 1Q26 was down 29.9% y/y.
In Mar-26, primary market price increased moderately, up 0.4% m/m to US$ 1,403 per sq.m. The average price on the secondary market (for new buildings built with permits issued from 2013) was up 0.1% m/m, reaching US$ 1,305 per sq.m.
In Mar-26, price for renting an average (50-60 sq.m) apartment in Tbilisi was at US$ 9.9 per sq.m (-1.2% m/m), keeping rental yield high at 8.5%.
