Real estate prices in Tbilisi are increasing every day. Last year, apartment prices in the capital increased by an average of 10-15%, and the number of real estate loans issued by banks increased by about the same amount. It is no wonder that among the most popular districts are: Vake, Saburtalo, and recently Bagebi. Over the past 10 years, a recently almost uninhabited area has become one of the most prestigious districts, where infrastructure is developing daily.

In general, the increase in prices is related to the following factors:

• The principle of supply and demand: when demand is high, prices increase based on the principles of a market economy. A shortage is created;
• Increase in wages of employees: An increase in the wages of workers employed in the construction sector makes construction more expensive, because the builder has more expenses;
• Inflation: An increase in the general level of prices, of course, also affects construction;
• Rising prices of construction materials: Construction materials, especially imported ones, are becoming increasingly expensive;
• Tightening construction regulations: New legislative regulations and standards require greater costs.

In addition to these standard factors, there is another important reason that leads to an increase in demand and, accordingly, prices in the center. In the districts of Old Tbilisi (Mtatsminda district), prices are more or less frozen at a high level or are slowly increasing (the average price of 1 sq.m. fluctuates within the range of 2500-3000 dollars), although these districts have high tourist potential. Citizens receive more income by renting out their property, many leave their native districts and move to such central districts as: Vake, Saburtalo and Bagebi. That is why apartment prices are increasing in these districts.

We can call the fastest growth of Bagebi the “Bagebi miracle”. Its population has almost doubled in recent times, and prices have increased by almost 20% annually, and today the cost of 1 sq.m. is equal to 1800 dollars. The growth trend will continue in the future. It is estimated that in the next 3-4 years, prices will increase by 50% and citizens will receive 30-40% savings.