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Economics
The Annual Inflation Rate Amounted To 4.8% In January

The annual inflation rate was mainly influenced by price changes for the following groups:Food and non-alcoholic beverages: the prices in the group increased by 10.6 percent, contributing 3.55 percentage points to the overall annual inflation rate. Within the group the prices increased for the following subgroups: fish (20.5 percent), fruit and grapes (16.9 percent), bread and cereals (14.3 percent), sugar, jam, honey, chocolate and confectionery (10.2 percent), meat (9.7 percent), coffee, tea and cocoa (9.4 percent), vegetables (8.8 percent), oils and fats (8.7 percent), milk, cheese and eggs (8.6 percent), mineral waters, soft drinks, fruit and vegetable juices (6.8 percent);Health: the prices increased by 8.3 percent, contributing 0.68 percentage points to the overall index. The prices were higher for the following subgroups: hospital services (9.0 percent), medical products, appliances and equipment (8.3 percent), out-patient services (7.7 percent);Miscellaneous goods and services: the prices for the group increased by 7.4 percent, contributing 0.35 percentage points to the overall index. Within the group, the prices were higher mainly for the following subgroups: personal effects n.e.c. (37.9 percent), insurance (8.5 percent), personal care (4.2 percent);Restaurants and hotels: the prices went up by 8.1 percent, contributing 0.26 percentage points to the overall annual inflation rate. The prices in the group increased for both accommodation services (10.2 percent) and catering services (7.8 percent);Alcoholic beverages and tobacco: the prices increased by 3.5 percent, with the relevant contribution of 0.23 percentage points to the overall annual inflation rate. The prices increased mainly for tobacco (6.6 percent).

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Galt&Taggart predicts single-digit growth in apartment prices in Tbili...

Early in 2025, political uncertainty and weaker sentiment cooled demand, as many buyers postponed purchases. Apartment sales recovered later in the year as pent-up demand returned, lifting annual sales above 2023–24 levels, though still below the 2022 peak. On the supply side, even with an annual decline driven by a sharp 4Q25 slowdown, permit issuance stayed above 2015–22 healthy levels. Price growth moderated as strong permit issuance in recent years intensified competition, stabilizing price growth rate and pushing developers to offer their most refined inner instalment schemes yet. In 2026, we expect demand to remain broadly in line with 2025, supported by long-term fundamentals - urbanization, declining household size and attractive yields. Price is expected to have a stable single-digit growth and will largely depend on the supply side - planned large-scale projects and continued high permit issuance could add substantial new stock, limiting room for price growth.DemandIn 2025, total apartment sales in Tbilisi, according to the Public Registry data, stood at 42,388 units, up 4.3% y/y.• Sales on the secondary market, were up 12.3% y/y in Dec-25, bringing cumulative 2025 growth to 3.5% y/y.• Sales on the primary market, where data are impacted by delayed registrations, increased by 5.4% y/y in Dec-25 and 5.2% y/y in 2025. Our real-time survey of developers, which captures current trends on the primary market, shows that sales doubled y/y in Dec-25, supported by low base of Dec-24, when domestic political instability began. Cumulatively, primary market sales were up 27.3% y/y in 2025.SupplyIn 2025, permitted living area in Tbilisi declined by 4.2% y/y to 1.7mn sq.m, affected by sharp slowdown in 4Q25 (-32.1% y/y). Even so, permit issuance remained elevated, 32% above 2015-22 average healthy level. Notably, elevated permit issuance in 2023–25 was initially a response to the demand surge in 2022, but it has yet to fully realign with the lower postpeak sales.PricesIn 2025, prices increased across both primary and secondary markets. Primary market price was largely flat through 9M25 (0.2% m/m), however, growth accelerated in 4Q25 to 0.7% m/m amid recovered demand and slowed issuance of permits, reaching $1,373 in Dec-25. Overall, average price on the primary market increased by 4.0% y/y in 2025, down from 11.6% in 2024 and 20.2% in 2023. In Dec-25, average price on the secondary market (for new buildings built with permits issued after 2013) increased by 7.9% y/y to $1,316 per sq.m.RentsIn 2025, average rent remained within the $9-10 per sq.m stability range prevailing since 2024. In Dec-25, price for renting an average apartment (50-60 sq.m) in Tbilisi was $9.8 per sq.m, keeping rental yield within its long-term healthy level at 8.6%.

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Construction Permits Down by 4.2% in 2025

More than 70% of all permits were concentrated in four regions. Tbilisi accounted for the largest share with 46.2% of planned construction works, followed by Kvemo Kartli (10.1%), Kakheti (9.8%), and the Adjara Autonomous Republic (6.9%).In 2025, construction permits were issued for a variety of projects, including multifunctional residential complexes, commercial facilities, hotels, industrial enterprises, agricultural buildings, and other types of structures.GeoStat also reports that 3,393 buildings were granted occupancy permits in 2025 — 5.9% fewer than the previous year — but the total completed area increased by 8.1%, reaching 3.5 million m².Two-thirds of all completed buildings were located in four regions: Tbilisi (34.4%), Mtskheta-Mtianeti (13%), Kakheti (11.5%), and Kvemo Kartli (8.8%).

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Georgian economy expanded by 7.5% in 2025 - GeoStat

GeoStat reports that in December 2025, sectors such as manufacturing, information and communication, transport and warehousing, as well as hotels and restaurants, significantly contributed to the growth. Meanwhile, a downward trend was observed in the construction sector.

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GCCA releases blueberry market study – exports up 66%

Between 2020 and 2025, both the volume and value of blueberries exported from Georgia have shown sustained growth. In terms of volume, the compound average annual growth rate for 2020-2024 reached 66%. The trend observed during the first ten months of 2025 remains positive, reflecting a 38% increase compared to the same period in the previous year. In value terms, the compound annual growth rate for 2021-2024 was 62%. Between January and October 2025, the total value of exported blueberries increased by 59% relative to the same period in 2024, indicating a rise in the average price per unit.With regard to market structure, exports were low-concentrated during 2020-2022, transitioning to a moderately concentrated market in 2023–2025. Despite the growing share of the largest exporting company, no single entity holds dominant market power, and the distribution of market shares does not suggest conditions for collective dominance.Additionally, the number of companies operating at the export level has increased significantly compared to 2020-2021. During the review period, the position of the largest market participant changed multiple times, and the composition of the five largest companies has been dynamic.Based on these findings, no risks of competition law violations have been identified in the export segment of the blueberry market. Accordingly, the GCCA positively assesses the competitive environment in this market for the period 2020–2025 (January-October).It should be noted that the domestic sale of blueberries largely depends on export markets. Consequently, the primary market operators are exporting companies. The GCCA initiated monitoring of the blueberry market in 2020 in response to requests from local farmers.

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Georgian Railway will exclusively operate transportation on the Baku-T...

The key outcome of the meeting is that Georgian Railway will have exclusive rights to operate cargo transport on the Marabda–Kartsakhi line. This agreement strengthens the competitiveness of the “Middle Corridor” and aims to attract additional freight to the region.Special attention was given to the official opening of the Baku–Tbilisi–Kars (BTK) railway, a strategically significant development for the South Caucasus. The agreement was signed by Lasha Abashidze for Georgia and Levon Kankava and Mikael Abasov for BTKI Railways.Officials highlighted that the deal will enhance Georgia’s transit and logistics capacity, boosting revenues from international freight. “This agreement is a major milestone for the country’s railway infrastructure and regional economic cooperation, improving competitiveness and strengthening Georgia’s logistics capabilities,” the statement noted.

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In December, 4.3% more people received salaries

Of these, 9% (92,280 people) earned less than GEL 600, while the largest group, 51% (522,924 people), earned more than GEL 2,400 per month. Compared to the previous month, the share of low-wage earners fell, while the number of those earning above GEL 2,400 increased.PMC noted that the month-on-month growth in December is partly due to the 13th salary payments.According to GeoStat, as of the third quarter of 2025, Georgia had 1.396 million employed people, including 975,000 wage employees and 418,000 self-employed.

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New Apartment Prices in Central Tbilisi Up 21.5%

Across the city, primary market transactions rose by an average of 13.1%, and secondary market prices increased by 8.2%. In December 2025, a total of 4,495 residential apartment transactions took place in Tbilisi, marking a 12.7% increase compared to the previous year. The market size grew 21.8%, reaching $350 million.For older apartments, the average weighted price increased 12.3% in the suburbs, 7.7% in the wider center, and showed a slight 0.1% decrease in the city center compared to December 2024.Transaction volumes in new projects rose 15.4% year-on-year. On the primary market, new apartment transactions increased 10.4%, while secondary market transactions grew 24.3%. In older projects, transaction numbers increased by 2.9%.

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Batumi Apartment Transactions Up 42% in December 2025

Newly constructed apartments saw a 44.2% rise in transactions, while existing units increased by 15.8%. On the primary market, first-time sales jumped 75.2%, whereas secondary market transactions grew 18.2%. Of the primary market sales, 170 transactions were registered by the state. The growth in the secondary market was driven entirely by foreign buyers, with no increase in local buyers.The weighted average price of newly built apartments in Batumi increased 15.4% to $1,231 per square meter. The primary market drove most of the price increase, rising 24.2%, while the secondary market saw a 10.7% increase.It should be noted that some primary market transactions are registered late, so the reported price trends may not fully reflect real-time changes.

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Residential property price index increased by 3.3%

The residential property price index covers only the Tbilisi market and pertains solely to new residential properties, including both multi-storey apartment blocks and private houses.Data from GeoStat indicates that in the fourth quarter of 2025, prices rose by 1.3 per cent in both the apartment segment and the private house segment compared to the previous quarter. Additionally, private houses experienced a 2.1% increase.Year-on-year, both segments saw price growth: apartments by 3.5 per cent and private houses by 2.5 per cent compared to the same quarter in 2024.Regarding the price per square metre in the apartment sector, the most expensive district remains Mtatsminda, where the average price per square metre is 6,738 GEL. Vake follows, with apartments costing 5,874 GEL per square metre. Other notable districts include Chugureti at 4,353 GEL, Saburtalo at 4,313 GEL, Krtsanisi at 4,181 GEL, Didube at 4,054 GEL, Nadzaladevi at 3,978 GEL, Isani at 3,854 GEL, Gldani at 3,731 GEL, and Samgori at 3,549 GEL.In the private houses segment, the highest price per square metre is also in Mtatsminda, at 4,594 GEL. Vake follows at 4,311 GEL, with Saburtalo at 3,504 GEL, Didube at 3,369 GEL, Samgori at 3,121 GEL, Isani at 3,110 GEL, Chugureti at 3,088 GEL, Gldani at 2,985 GEL, Krtsanisi at 2,830 GEL, and Nadzaladevi at 2,660 GEL.

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