Mass migration to Georgia, housing prices soared

Residents of Georgia are finding it increasingly difficult to find housing for rent – the country is experiencing a sharp increase in its cost against the background of the mass arrival of Russians.

In 2022, rental prices increased by 120%. The peak of the influx of migrants from the neighboring country occurred in the first months of the invasion of Ukraine and again – during the announcement of mobilization in the Russian Federation. At the same time, the Russians are ready to pay at inflated prices, but the locals have a hard time. Nika Kavtaradze says:

“I’m a student, before the war with my roommate we paid $160, after the arrival of the Russians, the price soared to $400. Without the help of our parents, we simply would not have had money for rent.”

Realtors note that in the center of the Georgian capital it is becoming increasingly difficult to rent housing due to the increased interest of Russian citizens – there is simply not enough of it. An increased demand for rent and purchase of real estate is also noted in Batumi and other Georgian cities. Natia Kikolishvili says:

“Last year, this apartment was rented for $800, now the rent has jumped to $1,500! going on to this day.”

The data of the brokerage company TBC Capital show that the prices for the purchase of real estate in the country increased by more than 20% last year, and rents doubled in price. At the same time, in 2023, according to investment companies, there is no reason to expect a decrease. Irina Kvakhadze, Senior Fellow at TBC Capital explains:

“In terms of rentals, our forecast is that the increase will not be as significant as in 2022, but prices will still move upwards. We also expect real estate for sale to increase in price by 18%.”

Analysts specify that not only the Russians who arrived with an anti-war position and are looking for real estate for their own residence are interested in housing in Georgia, but also investors from Russia and other countries. It is expected that market stabilization or gradual price reduction should not be expected before 2024.

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