Real Estate - Georgia | Statista Market Forecast

The Real Estate market market in Georgia is expected to reach a value of US$174.20bn by 2024.
Within this market, Residential Real Estate dominates with a projected market volume of US$141.70bn in the same year.
Looking ahead, the market is anticipated to grow at an annual rate of 5.86% (CAGR 2024-2029), resulting in a market volume of US$231.60bn by 2029.
It is noteworthy that in comparison to other countries, United States is expected to generate the highest value in the Real Estate market sector, reaching US$132.0tn in 2024.
The real estate market in Georgia is experiencing a surge in demand due to the country's favorable investment climate and growing tourism industry.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Georgia is experiencing significant growth and development. Customer preferences are shifting towards modern and luxurious properties, while trends in the market indicate an increase in demand for residential and commercial properties. Local special circumstances, such as government initiatives and foreign investments, are contributing to the growth of the market. Furthermore, underlying macroeconomic factors, including a stable economy and favorable investment climate, are driving the expansion of the Real Estate market in Georgia. Customer preferences in the Real Estate market in Georgia are evolving. Buyers and investors are increasingly seeking modern and luxurious properties that offer high-quality amenities and facilities. This shift in preference is driven by the rising income levels and changing lifestyles of the population. As a result, developers are focusing on constructing high-end residential and commercial properties to cater to this demand. Additionally, there is a growing interest in sustainable and eco-friendly properties, reflecting the global trend towards environmental consciousness. Trends in the Real Estate market in Georgia indicate a surge in demand for residential and commercial properties. The increasing urbanization and population growth in major cities like Tbilisi have led to a higher demand for housing and office spaces. This has resulted in a rise in construction activities and the development of new projects. Furthermore, the tourism industry in Georgia is thriving, attracting both domestic and international visitors. This has created a demand for vacation homes and rental properties, driving the growth of the Real Estate market in popular tourist destinations. Local special circumstances in Georgia are contributing to the growth of the Real Estate market. The government has implemented various initiatives to attract foreign investments and promote economic development. These initiatives include tax incentives, streamlined regulations, and the establishment of free economic zones. Additionally, the government has introduced programs to support affordable housing and stimulate the construction sector. These measures have created a favorable investment climate and encouraged both local and foreign investors to participate in the Real Estate market. Underlying macroeconomic factors are playing a crucial role in the development of the Real Estate market in Georgia. The country's economy has been relatively stable, with steady GDP growth and low inflation rates. This stability provides confidence to investors and encourages them to invest in the Real Estate sector. Furthermore, Georgia has favorable business and investment policies, making it an attractive destination for foreign investors. The country's strategic location at the crossroads of Europe and Asia also contributes to its appeal as a real estate investment destination. In conclusion, the Real Estate market in Georgia is experiencing significant growth and development. Customer preferences are shifting towards modern and luxurious properties, while trends in the market indicate an increase in demand for residential and commercial properties. Local special circumstances, such as government initiatives and foreign investments, are contributing to the growth of the market. Furthermore, underlying macroeconomic factors, including a stable economy and favorable investment climate, are driving the expansion of the Real Estate market in Georgia.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. 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 particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

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.

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Real Estate - Georgia

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