The number of construction permits issued for residential real estate in Tbilisi and the total permitted construction area are decreasing.

According to the Galt & Taggart analytics, in Mar-26, construction permits were issued for 17 residential projects, with total living area reaching 150,241 sq.m (-6.7% y/y).

Notably, the living area of issued permits has contracted annually for the 6th consecutive month, signalling a normalization after previously elevated levels.

A review of the long-term dynamics of residential construction permits in Tbilisi shows that permit issuance peaked in 2016 at 343 permits, after which the market transitioned into a more stable phase. In recent years, however, a clear downward trend has emerged: 258 permits were issued in 2023, declining to 233 in 2024 and further to 208 in 2025.

A similar pattern is observed on a quarterly basis, with 42 permits issued in Q1 2025 compared to just 35 in Q1 2026. In terms of volume, the total permitted construction area decreased from 341,000 sq.m in Q1 2025 to 239,000 sq.m in the same period of 2026. Overall, living area of permits in 1Q26 was down 29.9% y/y.

Source: Galt & Taggart

Image: AI generated.

Author: Lika Kasradze

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