Georgia’s building costs rise 3.4% in August despite a monthly decline

Georgia’s construction cost index was 3.4% higher in August 2026 than a year earlier, even though it declined by 0.8% compared with July. The figures were published by the National Statistics Office of Georgia on 7 October. The mixed reading matters because a single headline about rising construction costs can conceal very different pressures across building types.

Residential construction costs were 0.6% lower than in August 2025 and fell 0.7% month on month. Non-residential construction costs rose 4.6% annually but dropped 4.7% from July. Civil engineering was the strongest segment, increasing 7.0% year on year and 0.6% month on month. These are index changes, not the prices charged for newly built apartments.

Geostat’s breakdown shows why the annual index still rose. Transportation, fuel and electricity costs in construction were 19.7% higher year on year, while material costs increased 0.8%. A 6.5% monthly fall in average nominal construction wages helped pull the overall index down in August. Against the February 2022 baseline, the total index remained 29.2% higher.

For a buyer comparing off-plan projects, the national cost index is context rather than a project-specific price forecast. Contract terms, financing, completion stage and the developer’s track record still need separate checks. homeradar.ge’s developer-assessment methodology explains how completion history and information transparency can be evaluated independently of market-wide cost data. The release does not establish that apartment asking prices rose 3.4%.

homeradar.ge