Georgia lies at the crossroad of Western Asia and Eastern Europe in the Caucasus region, covering 69,700 The country borders the Black Sea from the West, Russian Federation from the North, Azerbaijan from the South East, and Armenia and Turkey from the South.

Situated along the route of the historical Silk Road, Georgia is a bridge connecting several important economic regions with a total population of more than 1 billion people. On the 27th of June 2014 the EU and Georgia signed an unprecedented Association Agreement, which includes a Deep and Comprehensive Free Trade Area (AA/DCFTA). The Agreement significantly deepens political and economic ties with the EU under the Eastern Partnership. The DCFTA brings economic benefits to Georgia by giving firms access to the EU’s single market, the world’s largest. This creates business opportunities, better goods and services, and boosts competitiveness. The EU works with the Georgian Government and businesses to achieve reform, and help upgrade goods and industries to the necessary standards. Country is unitary, semi-presidential republic with the government election through a representative democracy. It is a key link in the shortest transit route for the flow of global energy, information and trade.

ECONOMIC INDICATORS*20152016F2017F2018F2019F
GDP Growth
Private Consumption Growth
Industrial Production
Unemployment Rate (%) 12.311.411.110.710.5
USD/GEL (average)
EUR/GEL (average)

NOTE: *annual % growth rate unless otherwise indicated. E estimate F forecast
Source: National Statistics Office Of Georgia

Population3.72 million (2016)
GDPUS$13.9 billion (2015 estimate)
Public Sector BalanceN/A
Public Sector DebtN/A
Current Account BalanceN/A
ParliamentSemi-Presidential Republic
Head of StateGiorgi Margvelashvili
Prime Minister Giorgi Kvirikashvili
Election DatesOctober, 2016
Retail Volumen/an/an/an/an/an/a
Retail Valuen/an/an/an/an/an/a

Source: National Statistics Office Of Georgia 

Largest Cities
Source: National Statistics Office Of Georgia

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Georgia/'s Largest Cities - Cushman & Wakefield, Inc.: 41.716667, 44.783333


Goodwill, Fresco, Smart, La Family, Ori Nabiji


Carrefour, Spar


Elit Electronics, Smiley, Metromart, Belux, Domino, Samoseli Pirveli, Avtandil, Dot’s.


Burberry, Debenhams, Al Hokair/Retail Group Georgia (GAP, Superdry, La Senza Marks & Spencer, Topshop/Topman, Mango, F & F etc. and Inditex brands: Zara, Massimo Dutti, Pull & Bear, Bershka,) Koton, LC Waikiki, New Yorker, Baldi, Orsey, Etam, Garry Weber, Celio, Promod, OVS, Terranova, Accessories, Calzedonia, Intimisimi, Palmer’s.

Food and Beverage Operators

McDonalds, Burger King, Wendy’s, Subway, Paul, Entrée, Domino’s Pizza, The coffee Bean and Tea Leaf, Khachapuri Hut, Dinehall, Rooms, Lolita, Machakhela and domestic restaurant groups.


Georgia’s retail market represents diversity in development types, including open markets, bazaars and old-type shopping centres to contemporary street-retail shops, as well as modern shopping and entertainment centres. The last-mentioned are one of the most popular retail experiences, however, the biggest share of Georgian retail real estate market is allocated to bazaars and open markets. The size of the retail sector doubled between 2009 and 2014 and continues its expansion until now with the pipeline of new developments. Conversely, still fall behind international standards in terms of tenant mix, level of service and efficiency of management.

The market is highly flexible for new entrants arriving on the market either directly or through franchise partner. The Retail Group Georgia, part of the Saudi Arabian company Fawaz Al Hokair, is the official licensee of the Inditex brands in Georgia and currently the strongest retail group operating in the country. They control the rights for over 40 international brands including Zara, Massimo Dutti, Marks & Spencer, Gap, Banana Republic and Aldo and have been active in Georgia for more than 3 years.

Tbilisi continues to be a supplementary destination for the large international retail groups and brands, as an initial market entry location in Georgia, as well as for the future expansion plans on the regional base.

Georgia is also becoming an increasingly attractive market for the major international fast food retailers. The F&B sector continues to grow with the opening of the first site of international restaurant/brasserie Paul as well as Hard Rock Café. Additionally, such internationally recognized fast food operators as McDonalds, Wendy’s, Domino’s Pizza, Dunkin’ Donuts, KFC and Subway are expanding their presence by introducing new restaurants in Tbilisi.

International DIY chain stores are not currently present and modern retail warehouse space is virtually non-existent in Georgia.

E-commerce is growing in popularity as buyers become more confident with online security, although accurate figures are not yet available.

Generally, Georgia is considered to be an easy to do business country. A flexible investment environment, tax and legislative benefits, simplified company registration procedures, liberalized manufacturing regulations and a positive approach to foreign investors, generates the big step forward for attracting new international retailors. There are no restrictions on foreign companies either buying or renting property in Georgia. For small and medium scale operators the term is usually from 3 to 5 years, whilst large, anchor tenants’, average lease lengths range from 10 to 20 years.

Tbilisi MallTbilisi74,0002012
East PointTbilisi72,5002015
Tbilisi CentralTbilisi25,0002009
Gldani MallTbilisi7,0002014
Grand MallKutaisi 4,5712008
Batumi PlazaBatumi8,0002011
Batumi Central Batumi10,0002015

Lease TermsNormally retail leases in Georgia vary according to the type and specification of the center, as well as the tenant type. In most cases landlords are flexible regarding the lease term - for small and medium scale operators the term is usually from 3 to 5 years, whilst for large, anchor tenants average lease terms range between 10 and 20 years. Typically, most leases include provision for the tenant to terminate the lease at any time during a fixed term upon giving the landlord prior written notice (usually 6 months).
Rental PaymentRental payments are usually made on a monthly basis. Although rental payment structures vary on agreed terms of each individual lease contract, rents are normally paid on a fixed rate basis or by turnover rent agreement (percentage of turnover). However, some retailers prefer to pay higher fixed rental rates rather than revealing trade volumes. A security deposit of 1 month’s rent (equating to the last operational month) is common depending on the lease length, and this is forfeited by the tenant if the lease is determined prior to the end of the fixed term. Premium payments, also referred to as entrance fee or so-called key money (i.e. lump sum payment by the tenant to the landlord to secure the space in the shopping center), are not currently common practice in the market.
Rent ReviewTypically reviews will be agreed at the end of the lease rather than during the term. Indexation is not common practice but is being seen on an increasing basis together with fixed uplifts.
Service Charges, Repairs and Insurance In multi-occupied buildings a service charge varies from $3 to $10 depending on a building class and size.. The tenant is responsible for internal repairs and insurance.
Property Taxes and Other Costs Tax on property sales applies only where the property is held for less than 2 years and equates to 20% of any increase in value for individuals and 15% for legal entities. VAT on rental payments is usually paid by the tenant and equates to 18%.
Disposal of a LeaseThe tenant has a right to sub-let/assign their premises, subject to landlord’s approval. The landlord has a right to pre-terminate the lease if the tenant does not fulfill his obligations under the terms of the lease. At the end of the lease, the tenant is responsible for re-instating the premises to the same condition as at the start of the lease, subject to normal wear and tear.
Valuation MethodsThere are no special valuation methods attributed to retail premises. Value of the premises rely on location, size, shape and floor. Generally the comparable leases are to determine market value.
LegislationAll leases are governed by the Civil Code of Georgia due to the lease agreements being negotiated between both sides. Both the landlord and the tenant are responsible for the registration of the lease agreement, which exceeds 11 months at the appropriate authorities.

Georgia Contacts

Nino Dekanosidze

Associate Director, Veritas Brown
N71 Vazha-Pshavela Avenue
Block 10, 6th floor
Tbilisi 0186, Georgia
Tel: +995 322 47 48 49
Mob: +995 599 73 57 30