Tbilisi (GBC) - According to TBC Capital, in recent years, increased economic activity and the growth of the retail sector had a positive impact on the commercial real estate sector, including shopping malls, high-street shopping facilities and business centers.

Rising wages have increased the purchasing power of the population, which has been reflected in an increase in spending on consumer products. Also, increasing urbanization in cities is increasing demand for the retail and consumer sectors.

Shopping Centers

Economic activity in Georgia, and consequently, commercial real estate, is mainly concentrated in Tbilisi. There are 10 modern, multifunctional shopping centers in Tbilisi, with a total leasable area of ​​291,728 sq m. Batumi has 5 shopping centers with a total leasable area of ​​53,901 sq m. The shopping malls in Kutaisi, Zugdidi and Telavi are mainly a combination of shopping malls and open markets. A modern shopping mall was added to Zugdidi in 2023, featuring chain stores, international and local brands.

According to TBC Capital, the average rent in Tbilisi shopping malls in 2024 was $24.1 per sq m, up 7.4% year-on-year. In the same period, the average rent in Batumi shopping malls was $23.1 per sq m, up 5% year-on-year. The positive dynamics were driven by the opening of new shopping malls and the positive economic trends in Adjara.

In the coming years, new shopping malls will be added to Tbilisi, Batumi and Telavi. Among the shopping centers that are expected to open in Tbilisi in the future are Tbilisi Outlet Village, which will open in May of this year, and also the Children's World shopping mall, for which a construction permit was issued in 2024. In the coming years, two shopping centers will be added to Batumi: Orbi City and World Trade Center. In Telavi, a new shopping center will open in the fall of this year.