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Economics
Newly built apartments in Batumi have increased in price by an average...

According to recov.ge, a significant increase in the average weighted price in the secondary market was mainly observed in the Old Batumi and Rustaveli districts, which was mainly due to increased interest from foreign buyers. Note: Some transactions in the primary market are registered late, which is why the price growth trend does not reflect reality.In November 2025, the number of residential apartment transactions in Batumi increased by 22.2% compared to November last year and amounted to 1,550 units, while the market size increased by 45.1% to 97 million USD.In addition, in November 2025, the number of transactions in newly built apartments in Batumi increased by 24.8%, while a 5.7% decrease was recorded in the case of old apartments. The number of transactions in the primary market of newly built apartments increased by 25.9%, while an increase of 23.7% was recorded in the secondary market. Only 32% of the increase in transactions in the secondary market was accounted for by Georgian citizens, and 64% by foreigners.

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Apartment Prices in Tbilisi’s Central Areas Surge by Nearly 23%

On the primary market, newly built apartments in broad central areas saw a 24% increase, largely due to delayed registration of transactions by developers. On the secondary market, prices in these areas rose 20.1%, which recov.ge attributes to fewer transactions and the introduction of recently completed, high-end projects.Across the city, the average weighted price of primary market transactions increased 13.3%, while the secondary market rose 10.1%.For existing apartments, the average weighted price increased 12% in the suburbs, 18.4% in broad central areas, and 2.5% in the city center. The broad central area growth was mainly driven by transactions in Chugureti and Isani, with certain high-value projects skewing the average. Without these outliers, the growth in broad central areas would have been 8.8%.In November 2025, Tbilisi recorded 3,773 residential apartment transactions, marking a 2.2% increase compared to November 2024. The total market value grew 12%, reaching $299 million USD.Regarding new projects, transaction volume increased 4% year-on-year. On the primary market for new apartments, transactions were nearly unchanged, up only 0.2%, while the secondary market saw a 9.6% increase. Meanwhile, transactions in older projects declined 3.9%.The data reflects a strong demand for centrally located and newly built apartments, as well as a continuing shift towards the secondary market driven by high-end developments in Tbilisi’s broad central districts.

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Structural Imbalance Persists in Georgia’s Dairy Market

During the same period, milk imports increased significantly by roughly 50%, with the fastest growth observed since 2021. Meanwhile, the national herd of cattle has been steadily declining since 2021, and cow productivity continues to lag behind EU and regional benchmarks. This limits the potential for domestic production growth despite relatively stable output.As a result, growing domestic demand for both raw milk and higher-value dairy products is increasingly met through imports, including raw milk, milk powder, cheese, and butter. These imports are concentrated among a few supplier countries, predominantly within the European Union.Georgia’s dairy sector continues to experience steady growth in consumption, particularly for high-value dairy products. Cheese maintains a dominant position in the consumption basket, both in terms of volume and value, reflecting shifting consumer preferences and market trends.

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Georgia Spent $3.3 Million on Electricity Imports from Russia in Novem...

Electricity consumption in Georgia grew by 3.6% year-on-year to 1,200 GWh in November. Retail consumption decreased by 3.8% to 675 GWh, while large consumers’ usage rose 41.3% to 312 GWh. The Autonomous Republic of Abkhazia saw a 9.6% decline in electricity consumption to 213 GWh.The average weighted price on the balancing market in November was 5.53 US cents per kWh, a 0.8% decline compared to the same month last year. Monthly prices on the balancing market fell 5.3%, while the 11-month cumulative price increased 5.1% to 5.81 US cents per kWh.In November, Georgia imported 111 GWh of electricity, paying $3.3 million, with Russia as the supplier. Of this imported electricity, 30 GWh was directed to meet the needs of occupied Abkhazia.

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Tbilisi Accounts for Over Half of Georgia’s GDP

In Tbilisi, the largest contributors to GDP are wholesale and retail trade, including vehicle and motorcycle repair (23.7%), real estate activities (10.9%), and construction (10.4%). In Adjara, construction (14.7%), real estate activities (12.6%), and wholesale and retail trade (9.5%) lead the regional economy.Imereti, the third-largest regional economy, is driven by agriculture, forestry, and fisheries (11.4%), manufacturing (10.1%), and education (9.8%). In Kvemo Kartli, significant GDP shares come from manufacturing (16.1%), agriculture and related activities (14.1%), and public administration and defense (9.6%).These figures highlight the concentration of economic activity in Tbilisi while showing the diverse economic structures across other regions.

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Georgian Railway to Begin Construction of Railway Infrastructure to An...

The project will be extensive, including the construction of both tracks and overhead contact lines. “Georgian Railways also plans to build a cargo station linking directly to Anaklia Port. The new railway infrastructure is expected to be completed within 2 to 2.5 years,” Abashidze stated.This initiative is part of broader efforts to enhance Georgia’s transport and logistics network, improving connections between the country’s ports and regional trade routes.The Anaklia rail link is anticipated to boost cargo traffic and facilitate more efficient trade, positioning Georgia as a key logistics hub in the region.

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Railways will no longer repair old locomotives - locomotive fleet will...

"The most difficult terrain for the railway is the pass section. Trains spend the longest time crossing this area, and the modernization project has provided us with a completely new infrastructure. It is worth noting that from January 1, the existing 47-wagon fleet will become 57, and we will also increase the weight of the trains, which will allow us to transport much more cargo per shipment,” said Lasha Abashidze.According to his assessment, in addition to reducing transit time, the main challenge for Georgian Railways is the renewal of the wagon and locomotive fleet.According to the company’s General Director, the railway will no longer repair old locomotives.“We have made a decision to completely renew the locomotive fleet. We will purchase completely new locomotives and have a new, modern locomotive fleet. This is the largest project for the railway that we will implement,” said the General Director of the Railways.According to him, with the reduction of transit time and a new locomotive fleet, Georgian Railways will become even more attractive for strategic partnerships in the "Middle Corridor".

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Georgian wine imports to the US decreased by 28%

The US saw the steepest declines in wine imports from: Italy ($67 million) New Zealand ($51 million) Spain ($22 million) Australia ($12 million) Moldova ($11 million) Among its largest trading partners, the steepest percentage declines were recorded from: Switzerland ($47%) Moldova ($42%) South Africa ($16%) New Zealand ($13%) Germany ($11%) By contrast, US wine imports from France increased by 4%, despite a 10% decline in French export statistics, according to AAWE. This difference is partly explained by the exchange rate effect: a stronger US dollar increased the value of exports in dollar terms, while exports decreased in euros. Conversely, the decline is even sharper in local currencies where the US dollar has weakened compared to 2024, especially against the euro.

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The Producer Price Index increase amounted to 6.1%

The prices for mining and quarrying increased by 0.7 percent compared to October 2025, resulting in a 0.05 percentage point contribution to the overall monthly PPI change. In the same period, the prices for manufactured products increased by 1.3 percent, contributing 1.03 percentage points to the monthly index change.Within the group, a noteworthy price increase was registered for food products (2.2 percent) and chemicals and chemical products (5.8 percent). Besides, the prices decreased for electricity, gas, steam and air conditioning by 1.5 percent, contributing -0.16 percentage points to the monthly index change.The annual PPI rate was mainly affected by price changes for the following products:• Mining and quarrying: the prices were 24.2 percent higher, contributing 1.55 percentage points to the overall annual index change. Within the group, the prices were higher for the subgroup of metal ores (33.3 percent);• Manufactured products: the prices increased by 4.8 percent, contributing 3.86 percentage points to the overall annual index increase. There was a notable increase in the prices for food products (11.3 percent) and beverages (2.8 percent);• Electricity, gas, steam and air conditioning: the annual price increase amounted to 6.2 percent, which contributed 0.64 percentage points to the annual index change;• Water supply, sewerage, waste management and remediation services: the annual price increase amounted to 1.7 percent, which contributed 0.05 percentage points to the annual index growth.

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GDP increased by 6.4 % in 3Q25

Significant contributions to the real GDP growth in Q3 2025 are related to increase of valueadded of the following activities: Information and communication (21.1 percent), Education (20.7 percent), Financial and insurance activities (14.7 percent), Public administration and defence; compulsory social security (9.7 percent), Transportation and storage(8.1 percent), Arts, entertainment and recreation (13.0 percent), Wholesale and retail trade; repair of motor vehicles and motorcycles (3.0 percent).A decrease in the real value-added occurred in Agriculture, forestry and fishing (-5.4 percent), Electricity, gas, steam and air conditioning supply (-3.3 percent), Mining and quarrying (-8.7 percent).The largest share in GDP by activity is held by Trade (15.0 percent) and Manufacturing (9.4 percent), followed by Real estate activities (8.8 percent), Construction (8.4 percent), Information and communication (7.4 percent), Agriculture, forestry and fishing (7.3 percent), Public administration (6.0 percent), Education (5.4 percent).

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