Galt&Taggart research reads that demand in the Tbilisi real estate market depends on two main factors:

1) Needs-based purchase, driven by fundamentals.

2) Investment-based purchase, driven by rental income and capital gain.

Urbanization growth and decrease in the average family size create annual demand for about 9,000 apartments.

Urbanization growth creates a demand for about 4,000 apartments per year. Notably the population of Tbilisi has increased by 140,000 since 2014.

A decrease in the average family size creates demand for about 5,000 apartments per year.