According to the National Statistics Office of Georgia (Geostat), the Construction Cost Index posted a 29.3 percent increase compared to February 2022.

Let us take a closer look at Geostat’s latest report: CONSTRUCTION COST INDEX IN GEORGIA – JUNE 2026.

In June 2026 the Construction Cost Index (CCI) increased by 0.9 percent compared to the previous month, while it increased by 3.9 percent compared to June 2025.

In detail:

• The residential segment index increased by 2.6 percent compared to the previous month
and by 3.5 percent compared to the same month of the previous year;
• The non-residential segment index increased by 0.6 percent compared to the previous
month and decreased by 0.1 percent compared to the same month of the previous year;
• The civil segment index decreased by 0.5 percent compared to the previous month and
increased by 5.8 percent compared to the same month of the previous year.

Source: Geostat

An important question is: which components are actually driving the increase in construction costs?

Rising construction costs are often automatically associated with higher prices for building materials. However, the report shows a different picture.

Compared to June 2025 the CCI increased by 3.9 percent. The latter was largely caused by the 16.6 percent increase in the cost category of transportation, fuel and electricity and by the 1.8 percent increase in average monthly nominal wages of employees in the construction sector, which contributed 1.9 and 1.01 percentage points to the total index change, respectively.

By comparison, the cost of construction materials increased by only 0.6% year-on-year.

Source: Geostat

It is important to note that a 29.3% increase in construction costs does not mean that apartment sale prices should have increased by the same percentage. Construction costs are only one component of the final price of real estate. Other factors include the cost of land, financing expenses, the type of project, location, the developer’s profit margin, and a range of market demand factors.

However, one conclusion can certainly be drawn: when construction costs have risen by nearly 30% compared with 2022, this would also have been reflected, accordingly, in the prices of newly built real estate.

Source: Geostat

Author: Lika Kasradze

If you are considering investing in real estate in Georgia, Kedaro Group is ready to provide you with professional guidance. Contact us:
Email: kedarogroup@gmail.com
Phone: +995 593 618 181
Address: 18/22 G. Atoneli Street, 0105 Tbilisi, Georgia