Retail Real Estate Market in Tbilisi

In 2025, the size of Tbilisi’s main retail real estate market reached 1.3 million sq.m, of which 58% was accounted for by bazaars, 33% by malls, and 9% by high street retail. These formats serve different types of demand: malls serve branded and traffic-driven retail, central streets serve the premium and tourist segments, while bazaars cater to price-oriented consumers.

In 2025, leasable area of malls stood at 430 thousand sq.m, while, based on planned projects and assuming all of them are implemented, an additional 140 thousand sq.m of supply is expected by 2030. Despite this growth, the risk of oversupply is not yet evident in the market. Retail trade turnover doubled in 2019-25, while the share of e-commerce remains small and does not create significant pressure on physical formats.

Vacancy in malls stood at 6.6% in 2025, while rents have increased rapidly in recent years. In 2026-30, rent growth is expected to stabilize amid new supply.

The main opportunity for malls lies in the development of the luxury segment, as a large share of Georgians’ spending abroad is directed toward luxury brand clothing and accessories, while the share of such brands in Georgian malls remains limited.