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📉 Real Estate Market 2025: Stagnation and Cautious Players

In August 2025, Georgia’s real estate market has dangerously diverged from the momentum of previous years. Activity is nearly frozen — not only from buyers but also from financial institutions.

The market picture has drastically changed, and the causes are deeply systemic:

🏦 Bank Appraisals — The Main Brake
In recent months, bank appraisals of real estate have been significantly lower than actual market values. In many cases, valuations are nearly halved.

This means that people who could previously take out loans based on their property now can’t get sufficient financing for the same assets — completely stalling negotiations, sales, and transactions.

🧱 Construction Sector — Frozen Projects
The construction industry is one of the hardest hit by this situation.

Banks have practically stopped funding new developments.
This has led to the suspension of planned and ongoing projects, halting job creation, local economic growth, and future development.

🌍 Emigrants — Willing to Buy, Unable to Finance
In recent years, emigrants have been among the most active buyers of property in Georgia — for living, investment, or future plans.

Now, they can no longer access bank financing.
Strict lending policies and unrealistic property valuations have almost completely excluded emigrants from the market, reducing diversification and sharply cutting demand.

🚫 Startup Crisis — Innovation Sector Paralyzed
Bank financing is frozen not only for real estate, but also for startups.

Young businesses and innovative ideas are no longer receiving support.
Banks have no appetite for risk, and alternative investors are approaching the market with extreme caution. As a result, economic growth and technological development face serious threats.

⚠️ The Result — A Paralyzed Market with Hesitant Players
Today, buyers, investors, and developers are unanimously passive and cautious.

✔ Transactions have decreased
✔ Construction has stopped
✔ Price growth outlook is close to zero
✔ Expectations — more downturn

This picture demands systemic review, preferential financial policies, and a reliable, realistic valuation system to help the sector breathe again.

🔚 Conclusion:
As of August 2025, Georgia’s real estate market is practically paralyzed. Price growth expectations are minimal, investors and buyers are hesitant, and financial institutions are not supporting revitalization.

If proactive, recovery-oriented steps are not taken soon, Georgia’s real estate sector could enter a prolonged phase of stagnation.

📌 Blog prepared by MBG Group – Your Trusted Real Estate Partner
📞 +995 592 72 72 47 / +995 592 72 72 00
🌐 www.mbg.ge