Economy Outlook 2016

The Economy of Georgia appears to be making strides since February 2016, resulting in the production growth of 2.8% in comparison with 2015 figures of all sectors. Moreover, during Q1, FDI reached $1.4bn that also can be counted as 9.7% of GDP. Consequently, investments remained as the main rise of National Income. The Tbilisi’s Office market in Q1 2016 stayed relatively stable supported by positive economic outlook. This also can be justified by all pipeline developments having enjoyed successful pre-leasing and finalising the letting process prior to the project deliveries throughout 2015. Correspondingly, this fact increases competition on what space is available by pushing occupiers into making quicker decisions on acquisitions. Prime rents were largely stable over the full movie Okja

Georgia’s economic outlook is quite stable, if somewhat strengthening. Therefore, it has a positive effect on Tbilisi office market expressed by delivered pipeline projects in Q1 2016, that already have low vacancy rates due to relatively successful pre-leasing activities.

To see the market outlook and get insights about the challenges of Georgian Economy, read our Business Georgia new issue.