Foreign investment fell 23% last quarter — and a quarter of what came in went into property

Foreign direct investment into Georgia came to $468.8 million in the second quarter of 2026, down 23.2% on the same quarter a year earlier, according to the state statistics office. The fall was driven mainly by lower reinvested earnings rather than by a collapse in new money. Equity capital accounted for $210.5 million of the total, and reinvested earnings for $300.5 million, with debt flows working in the other direction.

China was the largest single source at $219.5 million, or 46.8% of the quarter's total, followed by the United Kingdom at $123.5 million and the United Arab Emirates at $47.7 million. Together those three accounted for a little over 83% of all inward investment. By sector, financial and insurance services led with $207.6 million, real estate followed at $119.9 million, and manufacturing took $59 million.

Property taking a quarter of all foreign investment in a single quarter is a demand signal: institutional money is still buying into Georgian real estate, which supports both construction activity and the resale market. The concentration cuts the other way, though. When three countries provide most of the inflow, a policy shift or a slowdown in any one of them shows up quickly in construction finance and in the buyer pool for new stock. That argues for judging a purchase on rent it can earn today rather than on an assumption that this capital keeps arriving at the same pace.

The statistics office publishes these figures quarterly and revises them, so a single quarter should not be read as a turning point. The useful habit is to compare the same quarter across years and to watch the real-estate line and the equity share separately: new equity is a stronger vote of confidence than earnings a company chose not to repatriate.