Georgia’s residential real estate market ended the summer of 2026 with rising sales and prices in Tbilisi and continued exceptionally high activity among foreign investors in Batumi, where foreigners accounted for more than half of all residential property transactions in August.
According to data from the Recov analytics platform, developed by Colliers Georgia, 3,388 apartment transactions were registered in Tbilisi in August 2026, an increase of 18.9% compared to the same month last year.
The market’s total transaction value grew even faster—by 35.2%, to $297 million.
New projects were the main driver of growth. The number of apartment transactions in new developments increased by 23.7%, including a 22.9% rise in the primary market and a 24.5% rise in the secondary market for new properties. Sales of apartments in the existing housing stock rose by 3.8%.
Colliers attributes a significant portion of the growth in new-construction sales to an expansion of supply, primarily in the Samgori and Didi Digomi districts.
At the same time, prices continued to rise. In August, the weighted average price of apartments in new buildings in Tbilisi rose year-over-year by 16.7% in the city center, 16% in the extended city center, and 10.4% in the suburbs.
Citywide, prices in the primary market rose by 11.9%, and in the secondary market for new projects, by 11%.
That said, Tbilisi remains a market dominated by local buyers. Georgian citizens account for the majority of transactions involving both new and existing apartments.
However, the share of foreign buyers continues to grow. In August, it reached 14%, up from 12% in July.
A completely different demand structure has emerged in Batumi. In August, foreign citizens accounted for 52% of apartment transactions, exceeding the share of Georgian buyers for the first time during the period under review. Back in July, the share of foreign buyers stood at 48%.
In total, 1,235 transactions were concluded in Batumi in August, which is 4.3% less than a year earlier. However, the market’s total value increased by 2.9% to $81 million.
The weighted average price of apartments in new buildings in Batumi rose by 1.2% year-over-year—to $1,386 per square meter.
Thus, Georgia’s two largest real estate markets are currently developing along different trajectories. In Tbilisi, domestic buyers drive the main demand, while Batumi has effectively become an international real estate investment market.
Among the most active foreign buyers of real estate in Georgia—particularly in Batumi—are citizens of Israel, Russia, Ukraine, EU countries, Turkey, and other post-Soviet states.
Recent detailed studies of the buyer demographic confirm a significant presence of Ukrainians.
According to data from Galt & Taggart for the first quarter of 2026, foreigners accounted for about 63% of apartment sales in the surveyed projects in Batumi, while Georgian citizens accounted for 37%.
The largest group consisted of buyers from European countries—about 18% of all sales. Israeli citizens accounted for a significant share. Buyers from Ukraine, Russia, and Belarus also formed one of the largest groups of foreign investors.
However, the published statistics combine citizens of Ukraine, Russia, and Belarus into a single category, so it is impossible to determine the exact number or share of purchases made directly by Ukrainians based on this data.
Earlier data from Colliers also lists Russians, Ukrainians, and Israelis among the main foreign buyers of residential property in Batumi.
Spanish Prime Minister Pedro Sánchez announced the dissolution of parliament and the holding of early parliamentary elections on November 29, 2026, after a fragmented parliament blocked a number of key government initiatives, including measures to combat the housing crisis.
On October 5, Sánchez announced the convening of an extraordinary cabinet meeting to initiate the procedure for dissolving parliament. The early election will take place nearly a year ahead of schedule.
The decision was made following yet another escalation of the housing crisis in Spain. Last week, parliament rejected the government’s proposed housing measures, and on October 3, tens of thousands of people took to the streets in protests across approximately 50 cities nationwide.
In Madrid alone, according to Reuters, about 70,000 people took part in the demonstrations. Protesters demanded tougher measures against rising rents, evictions, and the shortage of affordable housing. Protests also took place in Valencia and other major cities.
The housing crisis in Spain has worsened in recent years amid rapidly rising prices, insufficient supply of new housing, and high rental costs in major cities and tourist regions.
According to the latest Eurostat data, published on October 1, 2026, residential real estate prices in Spain rose by 12.1% in the second quarter compared to the second quarter of 2025. By comparison, housing prices across the European Union rose by an average of 4.7% during this period, and by 4% in the eurozone. Thus, the rate of price growth in Spain is more than double the European average.
Moreover, prices continue to rise on a quarterly basis: in the second quarter, prices in Spain rose by another 3.4% compared to the first quarter of 2026. In the first quarter, the annual growth rate was 12.8%.
High growth rates are also being seen in the resale market. According to indices published in early October by Spain’s largest real estate portals, the average price of resale housing continued to grow at double-digit rates in the third quarter. According to Idealista, prices rose by 11.8% year-over-year—to 2,930 euros per square meter—while Fotocasa estimates annual growth at 13.8% and the average price at approximately 3,140 euros per square meter.
At the same time, the situation is complicated by lending conditions. The Bank of Spain reported in July that in the second quarter of 2026, banks tightened lending conditions, and public demand for mortgage loans declined. Banks also expected lending conditions to tighten further in the third quarter.
Consequently, the housing issue has evolved from a primarily social and economic problem into one of the central factors on the Spanish political agenda. The rapid rise in real estate prices, the shortage of affordable housing, the situation in the rental market, and mass protests increased pressure on the government at a time when Sánchez’s cabinet was already struggling to pass bills in parliament.
Early parliamentary elections in Spain are scheduled for November 29, 2026.
The Lithuanian government has approved a draft law providing for additional restrictions on the acquisition of real estate by citizens of Russia and Belarus near strategically important facilities, Open4Business reports, citing data from the Lithuanian authorities.
According to a proposal by the Lithuanian Ministry of Foreign Affairs, the restrictions should apply to real estate located near military training grounds and other facilities of importance to national security. The draft law materials refer to areas within a radius of up to 10 km from the relevant facilities.
A significant change is that the restrictions are proposed to be extended, among others, to citizens of Russia and Belarus who have a residence permit in Lithuania.
Currently, the country already restricts the right to acquire real estate for Russian citizens who do not have a temporary or permanent residence permit, as well as for legal entities whose beneficial owners are Russian citizens. An exception is provided for receiving real estate through inheritance.
The new draft law should expand the existing restrictions. Similar rules are proposed to be established for citizens of Belarus and legal entities associated with them, while Russians and Belarusians with a residence permit would additionally be restricted from acquiring real estate near facilities important to national security.
The Lithuanian authorities explain the initiative by the risks of hybrid threats, intelligence activities and possible surveillance of strategic infrastructure and military facilities.
The problem is of a fairly significant scale. According to data from Lithuania’s Centre of Registers published in February 2026, Russian citizens owned about 8.7 thousand real estate properties in which they controlled at least 50% of the ownership. Belarusian citizens owned another approximately 4 thousand properties.
Thus, taken together, citizens of the two countries own approximately 12.7 thousand real estate properties in Lithuania.
The highest concentration of such property is in major cities and their suburbs, as well as in border municipalities, including Visaginas and Šalčininkai.
The authorities are paying particular attention to real estate near strategic infrastructure. According to data cited by Lithuanian media with reference to the Centre of Registers, after the start of the full-scale war, 1,845 Russian citizens acquired real estate near airports, as well as within 10 km of military training grounds and power plants, of whom 364 had temporary residence permits.
At the same time, this does not mean a complete closure of the Lithuanian real estate market to all citizens of Russia and Belarus. The new additional restrictions are primarily tied to territories near facilities of interest to national security.
The draft law still has to be considered by the Seimas of Lithuania. If finally approved, the new rules are planned to apply from January 1, 2027.
Ribas Hotels Group will take over management of a project by the investment and development company Arha Group—the Pótay cottage community currently under construction in the village of Yablunytsia (Ivano-Frankivsk Oblast), the company’s press service told the Interfax-Ukraine news agency.
The 3-hectare project involves the construction of 64 detached homes and 18 hotel rooms, as well as a restaurant, a spa, an all-season infinity pool, and other recreational facilities. Pótay is located at an altitude of about 970 meters above sea level, with views of Hoverla and Petros. The complex will combine the privacy of a private cottage with the service and infrastructure of a full-fledged hotel.
“We see that it’s no longer enough for guests to simply choose a destination. They choose a vacation experience: privacy, natural surroundings, the opportunity to spend time with loved ones, and at the same time enjoy hotel-level service. The Pótay concept is shaped precisely at the intersection of these needs,” noted Artur Lupashko, founder of Ribas Hotels Group, whose remarks are quoted in the press release
The grounds will also feature a sauna, lounge and children’s areas, fire pits, spaces for fitness and meditation, and a contemporary art gallery created in collaboration between Arha Group founder Ihor Ilchyshen and People’s Artist of Ukraine Volodymyr Kozuk.
One of Ribas Hotels Group’s tasks within the framework of this collaboration will be to develop the complex’s operational model, service standards, and guest experience, the company noted.
Ribas believes that the cottage complex format is becoming a more prominent part of tourist demand. For example, this summer, hotel occupancy rates in the Carpathian region averaged 67% on weekdays and 72% on weekends. The company has also observed a shift in demand toward locations and formats adjacent to major tourist centers, where guests can enjoy greater privacy and closer contact with nature.
Ribas Hotels Group—founded in 2014 in Odessa—is an international full-cycle hotel management company and hospitality ecosystem. Ribas Hotels Group’s portfolio includes over 50 projects currently under construction, in the launch phase, or under management in Ukraine, Poland, Turkey, and Bali. The company develops city and resort hotels under the Ribas Hotels, Ribas Rooms, WOL home + hotel, and Mandra Moments brands.
Arha Group is an investment and development company. It is implementing residential and commercial real estate projects with a total area of over 15,000 square meters: the AMA Family Resort in Bukovel, the WOL aparthotel in Vinnytsia, the Pótay cottage community in the Carpathians, and the Koreni club community near Vinnytsia.
CARPATHIANS, DEVELOPMENT, HOTEL, REAL ESTATE, RIBAS HOTELS GROUP
According to Interfax-Ukraine, S1 REIT, an investment company that manages real estate funds under the REIT model, has announced the launch of a new capitalization fund, “S1 Poznyaki,” with a total volume of 250 million hryvnia, which will invest in apartments in a high-yield residential building currently under construction on the shores of Lake Sribny Kil, according to the company’s press service.
According to the press release, the initial investment amount is 1,000 UAH, with the option to increase one’s share in increments of 100 UAH. The projected annual return is 9% in the local currency, and dividend payments will begin once the property is commissioned and rental operations commence.
“In the past, to make money on apartments, you had to buy a unit for tens of thousands of dollars. We’ve broken that barrier down into smaller parts. Now you can start with 1,000 UAH. The benefit for investors is simple: buy earlier—buy cheaper. As the building is under construction, the price per square meter rises, and with it, the value of the fund’s assets. So we want to acquire as many square meters as possible now—at an early stage, while prices are at their lowest. And we’re offering our clients the opportunity to buy alongside us,” explained Ihor Gifes, CEO of the investment company S1 REIT, whose remarks are quoted in the press release.
As previously reported, the National Securities and Stock Market Commission (NSSMC) decided at its September 16 meeting to register the prospectus and the issuance of investment certificates for the ZNPIF “S1 Poznyaki.”
“S1 Poznyaki” is a build-to-rent apartment building designed from the outset as a cohesive, professionally managed rental product, rather than a collection of individual apartments for private leasing. At the same time, the project embodies the “Live and Work in One Place” concept thanks to its well-developed residential and commercial infrastructure.
The “S1 Poznyaki” fund’s assets will consist of 80 apartments with a total area of 2,828 square meters in a 24-story apartment building containing 756 apartments, with a total area of 29,500 square meters.
The complex will feature approximately 1,500 square meters of internal infrastructure, including a coworking space, a gym, a lounge area, a movie theater, a spa area, indoor and outdoor spaces for relaxation and leisure, game and karaoke rooms, a children’s room, and a fully equipped shelter.
Another approximately 7,000 square meters on the ground floors will be allocated for commercial facilities: a supermarket, restaurants, coffee shops, pharmacies, a dental clinic, and other services.
Previously, as reported, S1 REIT launched the sale of “S1 Plaza Poznyaki,” whose assets will include commercial space in the shopping center near the “Poznyaki” metro station in Kyiv. The total area of the property is approximately 5,000 square meters, and the new fund’s offering amounts to 600 million UAH. The initial investment is 1,000 UAH, and the additional investment is 100 UAH. The projected annual return on “S1 Plaza Poznyaki” is 10.4% in currency terms.
The entire property will be managed by the real estate management company S1 Property, which will be responsible for operations and services for residents, as well as for ensuring stable rental income for investors.
The press release states that investors can use “S1 Poznyaki” as an investment vehicle and gradually increase their stake in the property. If the total value of accumulated certificates equals the cost of an entire apartment, investors will be able to exercise the option to exchange them for a completed apartment. The transition to physical ownership is not mandatory: certificates can continue to be held as an investment in the fund, and investors can receive dividend income once rental operations begin.
“For investors, the ‘S1 Poznyaki’ Fund offers new opportunities to acquire a share of unique, income-generating real estate in the capital and start earning from it immediately,” noted Gifes.
At the same time, it is clarified that these figures are projections, based on the project’s financial model, and do not guarantee future returns.
The company operates under the Real Estate Investment Trust (REIT) model, providing investors with the opportunity to participate in ownership and receive income from profitable properties without directly managing the assets.
Four funds are available for investment: “S1 VDNG,” S1 Obolon, “S1 Poznyaki,” and “S1 Plaza Poznyaki.” Their assets consist of income-generating real estate based on development projects by Standard One.
In Hungary, starting January 1, 2027, the VAT rate for certain new housing units may increase from the current reduced rate of 5% to the standard rate of 27%, which will put additional pressure on the prices of apartments in new buildings, according to local media reports.
The current preferential rate of 5% applies to new apartments with an area of up to 150 square meters and single-family homes with an area of up to 300 square meters that meet the established requirements. According to an official clarification from the Hungarian National Tax and Customs Administration (NAV), this regime, in its current form, remains in effect until December 31, 2026.
After that, the standard VAT rate of 27% will apply to properties that do not meet the conditions of the transition period.
However, a significant portion of projects already underway will be able to retain the tax benefit until the end of 2030. Specifically, the 5% rate may apply after December 31, 2026, if the required building permit has become final by the end of 2026. Transitional provisions are also in place for projects implemented under the construction notification procedure.
As a result, the Hungarian market may effectively feature new construction projects with varying tax burdens simultaneously, depending on the project’s start date and legal status.
The potential impact on housing prices could be significant. An apartment costing 100 million forints, taking into account the current 5% VAT rate, has a pre-tax price of approximately 95.2 million forints. If a 27% rate were applied to the same base, the final price would be approximately 121 million forints. The theoretical difference is about 21 million forints, or approximately 58,000 euros.
However, the actual price increase may be smaller, as developers may absorb part of the additional tax burden themselves in the face of weakening demand.
A decline in buyer activity is already being observed in the market. According to data from the National Bank of Hungary, the number of real estate transactions in the first quarter of 2026 fell by 18% compared to the same period the previous year. According to Duna House estimates, approximately 8,100 residential real estate transactions were concluded in August—13.1% fewer than in July and 29% fewer than a year earlier.
At the same time, developers are accelerating the preparation of new projects. In the first half of 2026, permits were issued and notifications were registered in Hungary for the construction of 16,588 residential units, which is 29% more than during the same period in 2025.
The change in the tax regime does not directly affect the resale housing market. However, the widening price gap between new projects subject to a 27% VAT rate, properties retaining the 5% rate, and the resale market may affect the structure of demand and housing prices overall.
Certain new apartments in officially designated “rust belt action areas” will remain an exception: provided they meet the requirements established for them, the preferential 5% rate will continue to apply even after January 1, 2027.
