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.