Trends in Georgia's construction and real estate sectors

Georgia's construction and real estate sectors produced 12.6 billion lari (18.2% of GDP) in 2023, up from 17.8% in 2022. Recovery from a severe 28% contraction in 2020-2021 proved dramatic, with construction rebounding 17.2% in 2023. Government infrastructure spending roughly doubled from 3 billion lari in 2018 to 6 billion lari in 2023.

Real estate attracted stronger foreign investment, averaging 176 million dollars annually from 2019-2023, with Spain and Russia leading. Construction permits issued in 2023 totaled 9.4 million square meters, 26% higher than 2022. Tbilisi and Adjara represented 78% of activity. Q1 2024 shows sustained momentum: permits rose 37% to 2.3 million square meters and sector growth reached 15.3%.