BAKU, Azerbaijan, January 12. Construction
costs in Georgia continued to rise in November 2025, Trend reports via the
country's National Statistics Office.
The Construction Cost Index (CCI) saw an uptick of 0.5% compared
to October and a year-on-year increase of 5.2%. Residential
construction costs rose by 0.9% from the previous month, while
year-on-year, they surged by 7.9%. In contrast, non-residential
construction costs experienced a more substantial increase, rising
1.7% month-on-month and 10.7% year-on-year. Civil construction,
however, saw a marginal decline of 0.4% from October, though it
still registered a 0.9% rise when compared to November 2024.
These rising construction costs are already setting the stage
for future price hikes in Georgia's housing market. Analysts at TBC
Capital and the Georgian Real Estate Agency (GREA) project a 5%
increase in property prices in 2026.
Meanwhile, a reduction in financing for new development projects
by commercial banks, as reported by the National Bank of Georgia,
signals a potential supply shortfall of new apartments in the
2026–2027 period. This reduced supply, combined with increasing
construction costs, may keep property prices high despite potential
shifts in demand dynamics.
Investors are increasingly turning their attention to emerging
neighborhoods, such as Ortachala, considered an extension of Old
Tbilisi, where land remains available, even as areas like
Mtatsminda and Vake approach price ceilings.
