Georgia is located in the South Caucasus region where Asia and Europe meet. It is bordered by the Caspian Sea to the east, the Black Sea to the west, Russia to the north, and Armenia and Turkey to the south. It is an important node country for the extension of the Belt and Road Initiative in Central and Eastern Europe.

This country, with an area of only about 69,000 square kilometers and a population of less than 4 million, has attracted the attention of a large number of international investors in recent years thanks to its open business environment, stable macroeconomic policies and superior geographical location. Georgia has signed free trade agreements with several major economies including China, the European Union and Turkey. It is one of the few countries in the world with a “four-directions duty-free market channel”.

Among them, in the field of construction and real estate, Georgia has demonstrated strong vitality and profound potential. The ever-growing demand for urban housing, government-led infrastructure construction, and high reliance on imported building materials have provided abundant business opportunities and implementation chances for Chinese building materials enterprises.

 1、Strong market demand: three major backgrounds drive the growth of building materials imports

1️⃣ Urban renewal + growth in residential demand: local supply is far from meeting the market demand

• Georgia has a high urban population concentration rate. Tbilisi alone accounts for approximately 30% of the country’s population, and its urban infrastructure is outdated, with a strong demand for renovation.
• Over the past ten years, the average annual growth rate of real estate construction projects in Georgia has been approximately 10%-12%.
• In 2024, the total investment in new residential construction in Georgia exceeded 2 billion Lari(approximately 730 million US dollars), while the country’s industrial foundation is weak and over 80% of its building materials rely on imports.

2️⃣ National-level infrastructure investment continues to release demand

• The “Middle Corridor” project led by the government promotes the construction of roads, ports and industrial zones, and has a large demand for steel, cement, prefabricated components, etc.
• According to data from the Ministry of Economy and Sustainable Development of Georgia, government infrastructure spending increased by 23.4% annuallyin 2023, making the construction industry one of the fastest-growing sectors in terms of GDP growth.

3️⃣ “Neighboring country transit + price advantage” amplifies import opportunities

• Georgia is a trade transit point without customs barriers. Building materials can enter Armenia, Azerbaijan, and even be transported to Europe via the Black Sea.
• Chinese building materials has gradually replaced the market share of mid-to-low-end products from Turkey and Iran by virtue of its low cost, standardization and mature supply chain.

🧱 2、Chinese building material enterprises have obvious advantages in going global. Which products are the most popular?

✅ 热销品类TOP 6（按市场反馈整理）：TOP 6 best-selling categories (compiled based on market feedback) :

Chinese-made tiles and lamps are the best-selling. It’s much higher in quality but cheaper in price than that of Turkey.

— Tbilisi building materials wholesaler Levan

🌐 3、For Chinese enterprises, this is not only an export but also a “foothold for going global”.

Although the Georgian market is relatively small, it has the following five major advantages:

1. Zero-tariff entry into the EU market (DCFTA), and re-export to the EU at
2. Simple tax system, friendly language, and solid foundation of Chinese business There are already several Chinese-funded building materials companies that integrate warehousing and exhibition halls in the local area.
3. Convenient transportation: It takes 14 to 18 days to reach Tbilisi by sea and land transportation from China.
4. The expansion of real estate and commercial entities is continuous, with a large space for market penetration.
5. The government encourages foreign investment, and the construction industry has consistently ranked among the top three in foreign investment introduction.

📅 The Smart Life Expo 2025 Georgia will grandly open on September 19, 2025!

• Four major exhibitions will be co-occurred:
• Building materials
• Auto and spares
• Boutique
• Home and electronic consumer goods

It is expected to attract over 1,000 professional purchasers and project parties from countries such as Georgia, Armenia, Azerbaijan and Turkey for on-site negotiations, making it a truly “efficient matching platform”.

📌 Next Episode Preview: Interpretation of Best-selling Categories ② | Automobiles and Spare parts: From a Major Second-Hand Car Country to a Hot Spot for Auto Parts Business Opportunities

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