Construction Materials and Home Improvement Sector in Georgia

Construction

The sector's rapid growth in recent years has been driven by elevated prices and record activity from both the public and private sectors. In 2026, a record number of apartment completions is expected, which will stimulate the renovation materials industry. Additionally, amid the Iran conflict, construction material prices are expected to rise, accelerating the growth of overall construction costs.

Construction Materials

Heavy-industry construction materials are predominantly produced in Georgia (66% local production). Concrete output increased significantly in 2024-25 on the back of record-high permit issuance and infrastructure spending. The import tariff introduced in 2025 replaced Russian and Iranian rebar imports with Turkish supply and boosted local production. Following rapid growth in 2022-24, cement prices stabilized in 2025, but a reacceleration in price growth is expected in 2026 amid the Iran war.

Renovation Materials

The sector is largely import-dependent, with Turkey and China as the main trading partners. Market size growth in the renovation materials sub-sector is aligned with price dynamics. On the other hand, revenues in the home appliances and furniture sub-sectors have remained broadly flat over the past three years, driven by rising demand offset by declining prices. In 2026, revenue growth is expected in both sub-sectors.