Georgia | The price of apartments skyrockets in Tbilisi due to Russian immigration

The price of housing in Georgia has skyrocketed.

Rental apartments are more expensive than ever. Good news for real estate agents, some of whom say the price hike is due to the flow of Russian emigrants fleeing war and conscription on the front lines to Georgia.

Russians are willing to pay more, and as a result many Georgian tenants are disadvantaged.

Nika Kavtaradze, remembers: “I am a student, before the war my roommate and I paid 160 dollars, after the Russians arrived the price went up to 400 dollars. Now our parents help us because if not, we would have to leave here”.

Real estate agents explain that in the center of Tbilisi the demand for Russian citizens is so high that there are simply not enough flats left. Sold out. All rented in the Georgian capital. The arrival of Russians is seen as something that has worsened life in Georgia in an effect similar to that caused by the arrival of Venezuelans in Madrid.

Natia Kikolishvili, real estate agent: “Last year the price of this apartment was around 800 dollars and now it is 1500. The influx of immigrants has turned everything upside down. The prices changed completely. At the beginning of this process, the prices they were what the owner asked for. In fact, that’s still the case.”

According to the latest data, in 2022 real estate prices in Georgia increased by just over 14.3 percent. And the number fluctuates daily. Investment companies estimate that in 2023 renting or buying real estate will be even more expensive than in 2022

Economist Irina Kvakhadze, Senior Researcher at TBC Capital: “We believe that when it comes to rent, this growth will not be as large as in 2022, but we still expect rental prices to rise. At the same time, we believe that the price sales will increase by around 18%.”

Currently the real estate market in Georgia is largely dictated by the flow of Russian emigrants.

Market analysts believe that prices will gradually decline from 2024, but regional instability makes any prediction difficult.

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