Why is real estate so cheap in Georgia? That is the question people ask when they consider moving to Georgia. If you’ve ever browsed listings for apartments or houses and stumbled upon housing in the country of Georgia, located between Europe and Asia, you’ve probably been surprised by how affordable things look compared to Western Europe, the U.S., or even neighboring spots like Turkey or Armenia. A decent one-bedroom in Tbilisi might go for under $100,000, and in smaller cities or suburbs, prices drop even lower. Rent is similarly budget-friendly—often $400–$800 a month for a solid place in the capital. So why is real estate in Georgia still relatively cheap, even as the market heats up? It’s a mix of historical factors, economic realities, geography, and smart policies that keep entry barriers low while attracting more buyers every year.
Georgia’s overall cost of living
First off, Georgia’s overall cost of living remains one of the lowest in the region and Europe. Wages, construction materials, labor, and utilities are cheaper than in places like Poland, Czechia, or Spain. Developers can build modern apartments without the sky-high costs that drive up prices elsewhere. Land is plentiful outside major cities—Georgia isn’t cramped like many Western countries—so there’s less pressure from scarcity. In Tbilisi or Batumi, you might pay $1,200–$2,500 per square meter in good areas (as of recent 2025–2026 data), but that’s a fraction of what you’d spend in Berlin ($6,000+), Lisbon, or even Sofia. This affordability stems from a lower baseline economy: Georgia’s GDP per capita is still catching up to EU levels, which naturally keeps property valuations more grounded.
One often-overlooked perk of owning or renting in Georgia is how incredibly low the monthly utility costs are, which further enhances the appeal of the already affordable real estate market. For a typical 85 m² apartment in Tbilisi (around 915 sq ft), basic utilities—including electricity, heating, cooling, water, and garbage collection—average around $70–$120 per month, depending on the season and usage. In summer, bills might dip to $50–$80 with minimal AC, while winter heating (often via gas or electric) can push it toward $100–$150 in colder months. Breakdowns from recent 2025–2026 data show electricity at roughly $20–$50, water $5–$15, gas $10–$40, and garbage a negligible few dollars. High-speed internet (60 Mbps+ unlimited) adds just $12–$25 more, making the total package for a couple or small family comfortably under $150 most months. These figures are a fraction of what you’d pay in Western Europe or the U.S., where similar setups easily hit $200–$400+. Low energy prices, efficient local providers, and no heavy surcharges keep ongoing ownership costs minimal, letting you enjoy your home without the sting of high bills—another reason Georgia’s real estate feels like such a smart, value-packed choice right now.
Evolving real estate market
Another big reason is the post-Soviet legacy and how the market evolved. After independence in the 1990s, Georgia went through tough times—economic collapse, conflicts, and slow reforms. Property was undervalued for decades, and even as things stabilized in the 2000s and 2010s, prices didn’t explode overnight. The real boom came around 2021–2023 with massive inflows from Russia and Ukraine due to geopolitical events, pushing prices up sharply (some areas saw triples in value). But even after that surge, Georgia remains “cheap” relative to peers because the starting point was so low. Compared to Western Europe, where properties cost 5–10 times more per square meter, Georgia feels like a bargain. Experts often highlight this as a key draw: affordable entry with solid appreciation potential.
Business in Georgia
Georgia’s business-friendly environment and tax policies play a huge role too. Foreigners can buy property freely—no restrictions like in some countries—and the process is quick (often done in a day at the Public Service Hall). Property taxes are minimal (often under 1% of value annually), and there’s no capital gains tax if you hold for a couple of years. This openness encourages investment without inflating prices through heavy regulation or barriers. Low taxes mean developers and owners keep more profits, which can translate to competitive pricing rather than padding costs. The government has focused on attracting foreign capital through simplicity, not high fees.
Tourism and real estate in Georgia
Tourism and the rental market add another layer. Georgia’s tourism exploded in recent years—millions visit for wine, mountains, history, and food. Places like Batumi on the Black Sea or Tbilisi’s historic districts see high short-term rental demand (think Airbnb), which boosts yields (often 7–10% gross). But because supply has grown fast—new builds everywhere—the market hasn’t overheated to unaffordable levels yet. Developers keep churning out projects to meet demand, which prevents prices from skyrocketing as much as in more supply-constrained spots. In 2025–2026, we’ve seen steady but moderate growth (around 5–11% yearly in key areas), not the wild spikes of earlier years.
Georgia’s geographical location
Geography helps too. Georgia is small but diverse—mountains, coast, valleys—so land isn’t as limited as in island nations or densely populated regions. In rural areas or smaller towns like Kutaisi or Telavi, you can find houses or land for a steal. Even in cities, suburbs offer bargains because infrastructure is still catching up in some spots. Construction costs stay reasonable due to local materials and labor, unlike places reliant on expensive imports.
That said, “cheap” is relative and changing. Prices have risen significantly since 2020—tripling in some cases due to migration waves and investor interest. In Tbilisi, averages hover around $1,200–$1,500 per square meter now, with premium districts like Vake or Mtatsminda hitting $2,000–$3,000+. Batumi is similar, around $1,100–$1,800. But compared to Europe or even Russia pre-2022, it’s still accessible. Big projects—like massive UAE-backed developments in Batumi—signal confidence and could push values higher long-term, but for now, they add supply and keep things balanced.
For renters or buyers, this affordability means more options. You can snag a modern apartment with views, good location, and amenities without breaking the bank. Platforms like rentor.ge make it easy to browse rentals, with filters for everything from budget studios to luxury pads. It’s a go-to for locals and expats alike.
Of course, cheap doesn’t mean no risks. Some older buildings need updates, and in off-plan projects, delays happen (always check developer reputation). But overall, the combo of low costs, easy ownership, tax perks, tourism growth, and ongoing economic progress keeps Georgia’s real estate market one of the most approachable in the region.
Conclusion
If you’re eyeing a move, investment, or just curious, now’s a fascinating time. Prices are climbing steadily but remain far below many global benchmarks, offering real value. Whether for living, renting out, or flipping, Georgia’s real estate scene rewards those who get in early. The country’s charm—hospitality, nature, wine, food—makes owning here feel like more than just an investment; it’s a lifestyle upgrade at a price that’s hard to beat elsewhere.
Sam