How the Structure of Demand in Tbilisi Is Changing: Who Buys Real Estate and Why the Market Has Split Into Two Directions

Over the past three years, Tbilisi has become one of the most dynamic capitals in the region in terms of migration, construction pace, and interest from foreign buyers. The city continues to expand: infrastructure is growing in all directions, new transport lines connect residential zones with the center, and the renovation of old neighborhoods is improving the overall quality of the urban environment. 

Against this background, international buyers increasingly view the Georgian real estate market as a space for long-term decisions — and as a result, the structure of demand is changing faster than before.

Demand splits between two strategies.

On one hand, some buyers choose apartments for permanent or regular living: families, entrepreneurs, and remote professionals. On the other hand, a growing group focuses on income-generating properties and sees investments in Tbilisi real estate as a tool for building stable rental income. Although these segments may appear similar, they rely on different criteria: budget, building type, district, ownership horizon. As a result, the market is increasingly dividing into two directions that evolve in parallel and reinforce each other.

Below is an overview of how the buyer profile is changing, which districts are gaining popularity, and why both directions are equally important for the city’s economic development.

Apartments for Living: What Buyers Look For and Who Forms the Core Demand

The main driver of this category is relocation. People move to Georgia for long periods, choosing a place where they can work, run a business, or provide a comfortable lifestyle for their families. That is why demand is concentrated in districts with strong infrastructure: Saburtalo, Vake, and Dighomi. These areas offer schools, medical centers, shopping malls, parks, and convenient connections to the business center — which makes them especially attractive.

Buyers prioritize functionality and quality. Popular layouts include units with a separate bedroom, good natural light, and balconies. Move-in-ready apartments or those requiring minimal finishing work are in high demand. Projects in the comfort and business class categories are the most popular, as they appreciate faster in value — an important factor for long-term ownership.

Who buys apartments in Tbilisi for living?

Most commonly:
– Relocants from Russia, Ukraine, and Israel
– IT specialists and digital professionals
– Consultants, designers
– Families choosing districts near international schools
– Entrepreneurs planning long-term presence in Georgia

According to market estimates, this segment accounts for 20–30% of transactions and continues to grow. This trend is supported by two factors: stable mortgage conditions in Georgia and the increasing use of developer installment plans that spread payments over 2–3 years.

Some buyers view an apartment as a reserve asset: even if they do not live in Tbilisi permanently, the unit remains ready for immediate relocation or can be rented out temporarily. This hybrid model blends the “living” and “investment” segments.

Investment Properties: What Investors Choose and What Drives Rental Yield

Investors follow a different logic. They focus on payback period, occupancy forecasts, and maintenance costs. Therefore, compact units and studios — especially in Saburtalo, Avlabari, and Chugureti — remain at the center of attention. These districts attract renters due to their proximity to the city center, metro, universities, coworking spaces, and well-developed infrastructure. They also maintain stable demand year-round.

Who rents these apartments?

Digital nomads, IT professionals, students of international programs, and foreign lecturers. The typical rental period ranges from one to six months — the mid-term rental format, which has become a key trend of 2024–2025.

Renters value:
– a workspace
– fast internet
– high-quality air conditioning
– a washing machine
– modern furnishings

For this reason, investors prefer apartments with ready finishing and basic furniture, which allows them to start generating income almost immediately.

The average market yield is 7–9% annually. In some cases, with the right district and a strong property management company, yields can reach 10%. Against the backdrop of moderate bank deposit rates, this attracts more Georgian buyers as well — they have been actively returning to new developments over the past two years.

A separate growing segment consists of retirees from European countries. They choose Tbilisi as a comfortable and affordable place to live for part of the year. When they are away, the apartment continues to generate rental income, making the purchase even more rational.

Why the Two Segments Don’t Compete — They Reinforce Each Other

The Tbilisi market does not break into opposing camps. Instead, both directions create a sustainable ecosystem: the growth of permanent residents increases rental demand, while investment projects stimulate infrastructure development in districts where new developers appear. The more residents and renters a location attracts, the faster it develops — and the safer investments become.

This forms a balanced market where buying an apartment in Tbilisi can be equally effective for living and for generating income. The key is to choose the right strategy: evaluate the district, property type, developer, and projected demand. Proper analysis before purchase becomes the crucial step.

BD Realty helps you select the optimal approach.
Looking to buy an apartment in Tbilisi for permanent living with long-term appreciation potential? We will recommend the right district, layout, and developer.
Searching for an income-generating unit with year-round occupancy and yields from 8%? We will show you projects where demand remains consistently high.

Submit a request to receive a personalized consultation on the Tbilisi market and current investment opportunities.