BAKU, Azerbaijan, September 7.
Housing costs in Georgia continued to rise in August 2026, even as
the country's residential property market showed signs of
stabilization after several years of rapid price growth.


According to the National Statistics Office of Georgia
(Geostat), prices in the housing, water, electricity, gas and other
fuels group rose 8.5% year-on-year in August, with actual rentals
for housing up 8.4%, electricity, gas and other fuels up 10.3%, and
maintenance and repair of dwellings up 8.7%. The group contributed
0.82 percentage points to the country's overall 5.6% annual
inflation rate.


The rental price trend comes as Georgia's residential
property market shows signs of cooling from its earlier pace of
appreciation. Galt & Taggart, the investment banking arm of Lion
Finance Group, told Trend in an exclusive comment that price growth in the
market has stabilized. "Based on our analysis, primary market price
rose by 6.1% year-on-year in May," the company said, adding that it
expects growth to remain within a 5-7% annual range, supported by
urbanization, shrinking household sizes and rising incomes.


Tbilisi's gross rental yield stood at 8.4% in May,
broadly in line with its 8-9% long-term average, with average rents
stabilizing around $10 per square meter, according to Galt &
Taggart. Trend's
calculations show that combined with the 6.1% price growth, this
points to a total nominal return of roughly 14.5% for a Tbilisi
residential investor over the period — before accounting for taxes,
vacancy or maintenance costs.







Galt & Taggart also noted that Georgian buyers
accounted for 76% of surveyed primary sales in Tbilisi in 2026,
with Israeli buyers at 11% and Russian buyers at just 3%, while
demand in Batumi was more diversified. The company said the
post-war migration wave mainly boosted rental demand and yields
rather than driving residential sales in the capital.


For reference, Georgia's central bank has cited
housing and rental costs as a contributor to inflation remaining
above its 3% target, while continued tourism activity and foreign
rental demand have helped keep gross yields elevated even as sales
price growth has moderated.