Small apartments have become one of the fastest growing trends in the real estate market of 2025. Apartments that were previously considered a compromise are now the most profitable assets for investors. Why is this happening? The changes are much deeper than just a low price.

Small apartments - the fastest-selling product

In recent years, the number of students, foreign specialists and seasonal residents has increased in Georgia. The main criteria for them are:

• Good location;
• Affordable rent;
• Newly built apartments, not area.

That is why 25-45 m² apartments in Tbilisi, Batumi and even Kutaisi are the fastest-selling on the market.

Low initial investment - high profit

A small apartment is much cheaper, which gives the investor:

• Lower down payment;
• Lower mortgage payments each month;
• Higher rental income, as small apartments are rented out quickly and bring good income.

That is why investing in a small apartment is the easiest and most profitable choice today.

Lifestyle of the new generation

Buyers aged 20–35 prefer:

• Central location;
• Services (malls, gyms, cafes);
• Fast transport.

And space is no longer a priority for them.

This trend has also changed the approach of developers - the number of small apartments is increasing in almost all new projects.

Energy efficiency and low costs

A small apartment means small:

• Heating costs;
• Electricity consumption;
• Renovation budget.

All this is for the category of buyers who are looking for an apartment with practicality and comfort, not just square footage.

Living space is becoming more expensive

The price of land plots and construction costs are increasing every year, so developers have to allocate more small apartments in order to keep the project price competitive.

As a result, “minimalist urban apartments” have become the norm for the market, which ideally respond to the existing demand.

For investors, this is already a strategy

Investors are already demanding small apartments in advance, because statistically:

• They sell faster;
• They rent faster;
• They change the interior/renovation cheaper;
• They are less risky during market fluctuations.

In 2025, this trend has become even stronger, especially in central districts.

The demand for small apartments in 2025 is not only growing for financial reasons - it is a combination of urban living, the economic environment and demographic trends.

For investors, this means one thing - a small apartment is today the most stable and high-yielding choice in the Georgian real estate market.