Asking rents have fallen three years running — 8%, then 11%, and a smaller dip expected this year

Asking rents in Georgia fell about 8% in 2024 and about 11% in 2025, with a further decline of roughly 2.1% projected for 2026. The rate of fall is easing, which is the one piece of good news in the series, but three consecutive down years is a trend rather than a wobble. In Tbilisi the average rent stood at around 10 dollars per square metre as of February 2026 — a figure worth holding next to whatever the agent quoted you when you bought.

Over the same stretch house prices rose, with national growth of about 4.97% year on year in the second quarter of 2026, although adjusted for inflation that comes out slightly negative at -0.81%. Sales volumes grew too: roughly 78,500 apartments nationally in 2025, up about 5.94%, of which Tbilisi accounted for 42,388. A market can absorb more units at higher prices and still pay its landlords less, and that is precisely what has been happening.

Gross rental yields as of February 2026 came out at about 7.42% nationally, 7.53% in Tbilisi and 7.31% in Batumi — still solid, and still the main reason people buy here, but arrived at by rents falling less than prices rose rather than by rents doing well. Set that against a mortgage rate of about 11.64% in June 2026 and the arithmetic of a leveraged purchase is unforgiving: borrowing costs more than the asset yields, so the case has to rest on capital growth, which in real terms has been roughly flat.

If you already own outright, a yield in the sevens with no borrowing against it is a perfectly reasonable thing to hold, and the easing rate of rent decline argues for waiting rather than dumping into a market with plenty of competing stock. If you were planning to buy with a Georgian mortgage on the strength of a yield quoted before this correction, redo the sums with current rents rather than the ones in the brochure. And if you are setting an asking rent this autumn, price it against what comparable flats are actually letting for now, not against what yours achieved in 2023.