Urbanization is the process of urban population growth and the spread of urban lifestyles. This global trend is particularly relevant in Tbilisi, where the high rate of urbanization creates significant challenges and opportunities for economic, infrastructural, and social development.

According to statistics, 61% of Georgia’s population lives in cities or towns, while 39% remains in villages. The case of Tbilisi is even more striking – every third Georgian lives in the capital, which amounts to almost 1.3 million people. This growth has a significant impact on both infrastructure and the real estate market.

The urbanization of Tbilisi is developing under the influence of several main factors:

• Economic opportunities – The capital is the country's economic center and largest employer, which helps attract employment opportunities.
• Infrastructure development – ​​improving transportation, education, and healthcare systems leads to the concentration of the population in the city center and its suburbs.
• Migration from the regions – Many people, especially young people, move to Tbilisi to get an education or start a career.
• Development activities – The development of new residential complexes and business centers increases the demand for residential and commercial space.

The impact of Tbilisi urbanization on the real estate market:

• Development of residential areas

The limited availability of land in the city center has led to the active development of new residential complexes in the suburbs and the wider center. The construction has given new life to the neighborhoods. In parallel with the increase in demand, real estate prices are also steadily increasing.

• Price dynamics

The increase in demand has had a significant impact on real estate prices. The value of both primary and secondary residential properties is increasing, especially in areas where new infrastructure projects are underway.

• Commercial real estate

The growth in the number of business centers and commercial facilities is taking economic activity to a new level. The concentration of jobs in business districts, such as Vake, Saburtalo, and Bagebi, is increasing the value of commercial property in these locations.

Advantages and disadvantages of urbanization:

advantages:

• Economic growth – new jobs and business development;
• Infrastructure improvements – new roads and public transport;
• Access to services – education, healthcare and social services.

Disadvantages:

• Urban congestion – increasing traffic jams and traffic problems;
• Environmental impact – air pollution and reduction of green spaces;
• Housing crisis – rising prices and lack of affordable housing.

The urbanization process of Tbilisi is expected to develop in several key directions in the future:

• Compact urban planning – integration of green zones and recreational spaces;
• Developed transport system – expansion of metro lines, development of alternative transport;
• Smart city model – technological solutions to improve urban management.

Tbilisi's urbanization processes are having a significant impact on the real estate market. Its proper management will allow the city to maintain a balance between development and a comfortable living environment, which will be beneficial for all stakeholders.