Office Real Estate Market in Tbilisi

In 2025, the total size of Tbilisi’s office market reached 1.9 million sq m, and the largest share - 55% - accounted for by offices located in residential buildings. Meanwhile, supply of leasable business centers amounted to 358 thousand sq.m., representing a 19% share.

Tbilisi does not have a clearly defined central business district, while business centers are concentrated across several districts.

Before 2020, the supply of high-class business centers was limited. However, in 2020-25, the supply of business centers in this class tripled. According to planned projects, an additional 100 thousand sq.m. will be added to the market in 2026-28, mainly in the upscale class.

Demand in upscale class is mainly driven by foreign companies, particularly foreign financial and IT sectors. In 2019-25, employment in IT increased by 120%, while employment in the financial sector grew by 29%. However, this growth is expected to slow by 2028, while supply continues to increase.

In 2019-25, demand grew faster than supply, resulting in vacancy declining from 10% to 6.6%. In 2026-28, the picture will change: supply is expected to grow twice as fast as demand, and expected vacancy will increase to 16.8%. To bring vacancy back down to 10%, new supply will need to be paused in 2029-31.

Rents have been growing steadily in recent years. However, a slight correction is possible going forward amid rising vacancy. Upscale business centers are twice as expensive as offices located in residential buildings, so their growth will depend more on attracting new foreign IT companies. Midscale business centers, however, have real potential to attract tenants from residential buildings due to pricing, management, parking, security, and shared spaces.