Commercial Real Estate - Georgia | Statista Market Forecast

The Commercial Real Estate market market in Georgia is expected to reach a value of US$32.53bn in 2024.
Based on the projected annual growth rate of 5.54% between 2024 and 2029, the market volume is estimated to reach US$42.60bn by 2029.
In comparison to other countries, the United States is anticipated to generate the highest value in the Real Estate market, with a projected value of US$25.3tn in 2024.
The commercial real estate market in Georgia is experiencing a surge in demand due to the country's favorable business environment and strategic location.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Georgia is experiencing significant growth and development in recent years.

Customer preferences: Customers in the Commercial Real Estate market in Georgia are increasingly seeking modern and well-designed office spaces that can accommodate their evolving business needs. They are also looking for properties that offer a range of amenities and services, such as parking facilities, security, and access to public transportation. Additionally, customers are placing a greater emphasis on sustainability and are seeking properties that are energy-efficient and environmentally friendly.

Trends in the market: One of the key trends in the Commercial Real Estate market in Georgia is the increasing demand for coworking spaces. This trend is driven by the rise of freelancers, startups, and small businesses, who are looking for flexible and cost-effective office solutions. Coworking spaces provide these businesses with the opportunity to work in a collaborative and dynamic environment, while also benefiting from shared resources and networking opportunities. Another trend in the market is the growing interest in mixed-use developments. These developments combine residential, commercial, and retail spaces in a single project, creating vibrant and integrated communities. Mixed-use developments are particularly popular among millennials, who value the convenience and accessibility of having different amenities and services within walking distance.

Local special circumstances: Georgia's strategic location between Europe and Asia, as well as its favorable business environment, has attracted a significant amount of foreign investment in recent years. This has contributed to the growth of the Commercial Real Estate market, as international companies are establishing their presence in the country and are in need of office spaces. Additionally, the government of Georgia has implemented various initiatives to attract foreign investors, such as tax incentives and streamlined regulations, further stimulating the growth of the market.

Underlying macroeconomic factors: The growth of the Commercial Real Estate market in Georgia can be attributed to several underlying macroeconomic factors. The country has experienced a stable economic growth in recent years, with a strong focus on diversifying its economy and attracting foreign investment. This has resulted in a growing number of businesses and an increased demand for office spaces. Furthermore, the government has implemented reforms to improve the business climate and simplify the process of starting and operating a business in Georgia. These factors have created a favorable environment for the development of the Commercial Real Estate market.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.