Cross-border real estate investing has become a go-to way to finding asymmetric upside among experienced investors. If you find a place where you can enter early, you get to control risk better, while letting time do the lion’s share of the work.
The idea is simple: if a market is mature, pricing between under-construction and finished projects adjusts fast. But in an earlier-cycle market, the pricing gap between “early entry” and “delivered asset” can still be meaningful – as long as the data confirms that the market in question shows continuously increasing demand year to year.
Tbilisi just so happens to be such a market. That is why when investing in Georgia as a foreigner, most aim to buy into under-construction projects in Tbilisi.
Is buying an under-construction apartment in Tbilisi a good investment?
For any experienced investor, the go-to question is always “is the risk-adjusted return profile attractive versus other options?”
In the macro climate, the data about Tbilisi is positive. The World Bank’s Macro Poverty Outlook (Georgia, October 2025 edition) notes economic growth of 9.4% in 2024 and projects growth easing to 7.0% in 2025, high by regional standards.
Geostat (National Statistics Office of Georgia) reports FDI of USD 1 569.3 million in 2024, with real estate activities at USD 182.0 million. That’s about 11.6% of total FDI, third right after Financial and Insurance Activities and Manufacturing.
When investing in Tbilisi’s under-construction real estate, investors aim to deploy capital where the entry point is earlier in the cycle and where the construction-to-delivery window can create a significant pricing step-up. And not just in the price per square mile, the aim is to potentially produce higher yield – especially when the all-in entry basis is materially lower and phased pricing still exists in many developments.
It’s one of the reasons why Tbilisi keeps popping up on the UAE investors’ radar. UAE-based investors are familiar with off-plan cycles, but in highly efficient markets the window to capture “early-entry spread” closes quickly. CBRE’s Dubai data shows how fast re-pricing can happen once demand accelerates, and the market matures: with strong year-on-year growth in both prices and rents. That’s often when investors branch out and add other markets to their portfolio. The goal is to lock in the deal while the development cycle is in an earlier stage, and the difference between entry price and delivered price is still measurable. Georgia real estate investment opportunities fit that goal more often than not.
Under-construction projects in Tbilisi for early investment: why the timing matters
Early-stage investing works when the market is efficient enough to reward delivery, but not so efficient that it removes the upside before you enter.
A practical way to track the “timing premium” in Georgia is through official price evolution of new builds. Geostat’s Residential Property Price Index (RPPI) (new residential property in Tbilisi) reports that by Q4 2025 the index was 59.4% higher than the 2020 average.
This is also where liquidity matters: in Galt & Taggart’s survey of systematic developers, 98% of apartments were already sold in projects finishing by end-2024, while projects with a 2025 deadline were 94% sold. That combination of high sell-through and structured payment options is often exactly what internationally mobile capital wants to see: demand is real and continuously growing, but early-stage access still delivers significant benefits.
Under-construction projects in Tbilisi for early investment: what does today’s market data say?
So, we’ve gotten to the heart of the question: what are the reasons to buy into under construction apartments in Tbilisi?
1) Entry price vs yield potential
Galt & Taggart reported primary market prices reaching $1,373 per sq m in Dec-25. That comparatively lower entry on the European market immediately changes the capital-efficiency equation for investors coming from high-priced markets.
On the income side, the same report notes that rent for an average apartment (50–60 sq m) in Tbilisi was about $9.8 per sq m in Dec-25, and it reports rental yield outside the city center at 8.6% (Dec-25).
Now let’s compare Tbilisi, say, to Dubai, putting it in the same underwriting frame—without making it feel “targeted.” CBRE reports Dubai’s rental market strength as well: average residential rents up 21.1% (year to May 2024), and average annual rent for an apartment around AED 127k as at May 2024. But the difference is the starting point: Dubai’s AED 1,530 per sq ft apartment sales rate (May 2024) means you are often underwriting yield and growth on a higher entry basis in a market that re-prices fast.
2) Buyer behavior as a credibility marker
Galt & Taggart also reports a clear shift in foreign buyer composition. For example, in 2025, the share of Israeli buyers rose to 10%. They’re now the single largest foreign investor group in Georgian real estate.
This matters because it signals that sophisticated cross-border buyers are already present in the market and interest from their side is increasing. And this type of buyers tend to be pragmatic about legal clarity, property rights, and asset liquidity.
The data about foreign investors demonstrates a market validation, it’s an important datapoint inside the core investment narrative: more experienced foreign capital is participating, and diversification is improving.
3) Supply pipeline and what it means for under-construction selection
Under-construction investing is only attractive if supply growth doesn’t destroy pricing power. Galt & Taggart reports that the permit issuance remained elevated, 32% above the 2015-22 average healthy level. The numbers indicate that supply is active and competitive, and with the high absorption rates mentioned above, the risks remain relatively low when it comes to apartments in Tbilisi for foreign investors.
If you are tracking property prices in Tbilisi, treat citywide averages as a starting point, then move quickly into submarket logic (district demand, rental depth, and delivery quality). Finding an optimal project to invest in will become much easier if you treat Tbilisi not as one market, but as a unification of multiple micro-markets with different liquidity and tenant depth. The data from district to district varies quite widely.
Choosing the right project and developer: how to capture the upside
Early-stage investing in Tbilisi works best when you treat it like a controlled process, not a bet.
Here are a few criteria we would advise to utilize when screening under construction apartments in Tbilisi. They tend to come quite handy when separating strong outcomes:
Phased pricing + proven absorption
If projects delivering soon are already 96% sold, the market is telling you delivered stock is being absorbed. The opportunity then shifts to earlier delivery windows (e.g., 2025+ completion) where sell-through is still building, but demand is demonstrably present.
Payment structure and cashflow planning
Paying via an internal installment scheme straight to the developer, bypassing the classic bank mortgage is a common practice in Georgia (as Galt & Taggart notes). For international investors, that can be especially appealing because it resembles structured, staged exposure. They get to deploy capital in tranches, and risk can be monitored at each construction milestone.
Operational reality (tenant depth, unit type, management)
Galt & Taggart highlights rent levels around $9.8 per sq m for average apartments. Your unit sizing, furnishing strategy, and property management partner will decide whether you actually capture that yield profile.
This is where established developers like Archi are naturally positioned as one of the go-to options when new investors are looking to invest in Georgian real estate. It’s a matter of rational choice: investors, especially the new ones who’ve yet to become familiar with the local real estate market, want to minimize the risks before they dip their toes – and that calls for proof of repeatable delivery, clear processes, and lower execution risk. Especially if we’re talking about under-construction projects in Tbilisi for early investment when foundations have barely been laid – potential operational friction can make or break the deal.
Risk management for cross-border investors: the checklist to keep in mind
The reason early-stage investments outperform is not “because they are early.” It’s because the investor prices and controls risk better than the market average. .
Here are the risks sophisticated international investors typically prioritize—and how they apply in Tbilisi:
Currency and exit planning
Your rental income stream, your financing decisions, and your eventual exit currency matter. One practical comparison point: Galt & Taggart explicitly compares rental yield with alternative returns like GEL deposit rate and USD deposit rate, which helps frame what “attractive” means in local opportunity-cost terms—rather than relying on narrative. Tracking property prices in Tbilisi alongside FX is part of risk control, not market watching.
Developer and delivery risk.
This is where institutional habits matter. Israel-based investors often bring a diligence culture that is very transferably useful in Georgia: verify permits, construction schedule logic, contractual remedies, and title registration pathway upfront—especially in under-construction scenarios.
When it comes to laws and tax, don’t assume – verify.
Georgia’s become somewhat known for its loose property ownership laws. Almost anyone can buy real estate, aside from a few specific exceptions (for example, a foreign national cannot buy agricultural land). Property taxes are comparatively low but income received from renting out residential space for residential is taxed at 5%. Because ownership structuring and the renting purposes can change the rules, all technicalities should be confirmed with professional advisors based on residency and ownership structure.
What 2025 market data tells UAE & Israeli investors about Tbilisi
If you’re investing from the UAE or Israel, the 2025 data shows one important timely point: Tbilisi offers a lower entry basis and a meaningful construction-to-delivery pricing, at a time when your home markets are either far too efficient (Dubai) or cooling (Israel).
As things stand now, the real estate market in Dubai is the textbook case of efficiency. Knight Frank reports that 2025 set records: 205,400 residential deals and AED 544.2bn in transaction value (+18% and +25% year-on-year, respectively). Prime prices have pushed past AED 4,300 per sq ft, and one-bed rents in Downtown averaged AED 127,000 per year. The numbers are strong, but when it comes to investing, such strength is a sign that competition and repricing can happen far too fast and minimize potential earnings.
Israel, meanwhile, has looked more mixed over the last year. Israel’s Central Bureau of Statistics reported dwelling prices down 0.3% in Aug–Sep 2025 versus the prior period, while the 12-month price increase moderated to 0.5%. Newly-built dwelling prices fell 0.8% over the same Aug–Sep period. The cooling has nudged experienced investors to add geographic diversification.
Now compare that to Georgia in 2025. GeoStat’s RPPI for new residential property in Tbilisi shows the index 59.4% above the 2020 average by Q4 2025. Galt & Taggart’s 2025 overview puts the average primary-market price at $1,373 per sq m in Dec-25, with average rent for a 50–60 sq m apartment at $9.8 per sq m, with rental yields around 8.6%. UAE and Israeli buyers looking at under-construction projects in Tbilisi for early investment have a solid basis to expect that the delivery window can still compound both value and income in the coming years.
How to buy an under-construction apartment in Tbilisi as a UAE citizen
- Find the right project first: focus on location, realistic delivery timeline, and whether the developer has a proven track record (it’s best if they have a portfolio of completed projects you can actually check out).
- Get in touch with a local lawyer: their main job is to confirm the project is legally in the clear on all accounts (land title, permits, contract terms, what happens if delivery is delayed, and how/when your ownership is registered).
- Clarify the payment model: most experienced developers tend to offer internal installment plans for their new projects. Such payment schemes tend to bypass banks, with payments directly to the developer. But the payment schedule tends to be tied to the construction completion. Make sure to ask about the minute details to arrange the payment schedule that’ll work best for you.
- Know the basics of ownership + taxes: foreigners can generally buy real estate easily (agricultural land being the one restriction). Rental income rules can differ by setup, so verify with a professional advisor.
- Have a long-term plan: decide upfront whether your plan is resale at delivery, long-term rent, or short-term rent. These factors should influence everything, starting from the choice of district and finishing with furnishing costs.
How to buy an under-construction apartment in Tbilisi from Israel
- Treat the contract like the deal: what matters most is what’s written. Make sure to put everything to paper – handover specs, penalties for delays (if any), registration pathway, and what exactly you’re buying (finish level, utilities, parking/storage).
- Due diligence is key to success: Israeli investors usually do well in Georgia. There’s a reason why their number has risen so high. They’ve done well because the overall process of purchasing a residential unit in Georgia is pretty simple. But that simplicity doesn’t mean the process doesn’t deserve attention. Dig deep into the company, its past projects, and the present one. Make sure that permits, land ownership, developer history, and a realistic construction schedule are aligned, before you sign anything.
- Better developers with proven track record: early-stage upside is real, but execution risk is the main threat. The easiest way to reduce it is developer quality and clean documentation.
- Keep cross-border paperwork tidy: save every document and payment confirmation. If you ever need reporting, refinancing, or selling, clean documentation makes everything easier.
- Confirm tax/reporting expectations: rules depend on your personal residency and income structure. Best invest in professional guidance from a local professional so there are no surprises later.
