What is the currency risk in buying Georgian property?
Georgian apartments are usually priced in US dollars, but the lari is the country's only legal tender, local costs and taxes are in lari, and you probably measure the result in a third currency of your own. The lari is a floating currency and it has moved a long way: from 1.7542 per dollar on 1 November 2014 to 3.4842 on 27 March 2020, and back to 2.5982 on 17 October 2026, according to the National Bank of Georgia's official rates. A buyer who borrows, earns or sells in a different currency from the one they paid in carries that movement.
This page explains where the currency touches a property investment, what the rules say about pricing and paying in dollars, how loans and taxes handle the exchange rate, and how to reduce the risk. How to move the money itself is covered in our guide to transferring money to Georgia.
How far the lari has moved
| Date | GEL per USD | Context |
|---|---|---|
| 1 November 2014 | 1.7542 | Before the 2014-2016 depreciation |
| 31 December 2015 | 2.3949 | After a year of steady weakening |
| 31 December 2019 | 2.8677 | Before the pandemic |
| 27 March 2020 | 3.4842 | Pandemic shock |
| 31 December 2022 | 2.7020 | Recovery after 2021-2022 inflows |
| 28 November 2024 | 2.7422 | Day the suspension of EU accession talks was announced |
| 4 December 2024 | 2.8746 | Almost 5% weaker within a week |
| 31 December 2025 | 2.6951 | Year end |
| 17 October 2026 | 2.5982 | Latest at the time of writing |
The pattern is one of long calm periods broken by sharp moves. Between November 2014 and March 2020 the dollar's price in lari roughly doubled; since then the lari has recovered much of the loss. Against the euro the lari gained about 7.8% between the end of 2025 and 17 October 2026 (from 3.1737 to 2.9274 lari per euro), twice its gain against the dollar, so buyers funding a dollar-priced flat from euros, shekels or other currencies have each had a different result from the same purchase.
What moves the lari
The National Bank of Georgia targets inflation of 3% and runs a floating exchange rate, which it describes as set by economic fundamentals. It intervenes to keep reserves adequate and to smooth sharp short-term swings, not to hold a level. In September and October 2024, before and after the elections, it sold USD 697 million to support the lari, and reserves fell to USD 4.08 billion at the end of October 2024. Since then it has been a buyer: net purchases of about USD 2.43 billion in 2025 and USD 2,566.6 million in the first seven months of 2026, which took reserves to a record USD 8.14 billion in August 2026. Large reserves give the bank more room to smooth a shock; they do not fix the rate.
The lari has reacted most to events that change capital flows: the oil price and regional devaluations in 2014-2015, the pandemic in 2020, the arrival of money and people from Russia from 2022, and the political turn of November 2024. None of these could be timed by property buyers in advance.
Where the currency touches your investment
| Stage | Usual currency | Who carries the exchange-rate risk |
|---|---|---|
| Purchase price | Quoted in USD, often paid as the lari equivalent | You, from your own currency to USD |
| Long-let rent | Often quoted in USD to foreigners, in lari to many local tenants | The tenant if rent is in USD; you if it is in lari |
| Short-stay income | Platform payouts in your account currency | You, through the platform's conversion |
| Building fees, utilities, repairs | Lari | You |
| Taxes | Calculated in lari | You |
| Resale | Quoted in USD | You, back into your own currency |
Rent in dollars does not remove the risk; it moves it to the tenant. When the lari weakens, a tenant who earns in lari pays more of their income for the same dollar rent, and in a weak market some will ask for a lower rent or leave. In early 2015, during the depreciation, ISET's Tbilisi index found average asking rents at a record low of $8.23 per m² and sale prices at their lowest since June 2013 in dollar terms.
Prices in dollars, figures in lari: why growth rates differ
The same market shows different growth depending on the currency used. Galt & Taggart reports Tbilisi prices and rents in dollars, while Geostat's official price index is in lari. In September 2023 Galt & Taggart found rents up 36.7% on a year earlier in dollars but 26.9% in lari; in March 2020, as the lari fell, new-flat prices rose 1% in a month in dollars but 3.8% in lari. In 2026 Galt & Taggart linked part of the market's strength to the stronger lari. When you read a growth figure, check which currency it is in and compare it with the one you will sell in. Our price history page keeps the series apart for this reason.
The rules on pricing and paying in dollars
- Legal tender. Under the Organic Law on the National Bank of Georgia, the lari is the only legal tender in Georgia, apart from cases the National Bank defines.
- Prices in lari. Since 2017 the same law requires an entrepreneur offering or advertising property or services in Georgia to state the price only in lari. The National Bank's list of exceptions includes supplies by or to a non-resident but does not name real estate.
- Contracts. The Civil Code expresses money obligations in lari but lets the parties set an obligation in a foreign currency unless the law prohibits it. In practice sale contracts often state a dollar amount payable as its lari equivalent at the National Bank's official rate on the day of payment, and legal guides describe leases quoting dollars with domestic payments settled in lari.
The practical result is that a dollar price is common in the market but the legal position on how it may be advertised and paid depends on who the parties are. Write the currency, the exchange-rate date and the account into every contract.
To be added by the team: the partner lawyer to confirm how the lari-only price rule applies to developers, agencies and private sellers, whether a property price may be paid in dollars between residents, and how the Civil Code's exchange-rate article applies to "dollar equivalent" clauses.
Loans: which currency to borrow in
From 1 July 2026, loans of up to GEL 1,000,000 must be issued in lari, under the National Bank's rules against unhedged foreign-currency borrowing; the limit was GEL 100,000 when the rule began in 2017. The National Bank's order of 15 June 2026 exempts borrowers whose income is entirely in the loan's currency and borrowers who are not Georgian citizens, so a foreign buyer can still be offered a dollar loan. In July 2026 new mortgages cost on average 11.4% in lari and 7.7% in foreign currency.
The cheaper dollar rate is not free: a borrower with lari income and a dollar loan pays more lari every time the lari weakens, which is exactly the risk the rule targets. The opposite also holds: a buyer who borrows in lari against a flat bought and later sold in dollars carries the rate between the two. Match the loan's currency to the income that repays it. Our guide to mortgages for foreigners covers eligibility.
Tax is calculated in lari
The Tax Code converts any taxable transaction in a foreign currency into lari at the National Bank's official rate on the day of the transaction. The gain on a sale is the sale price minus the purchase price, so both are converted on their own dates. A flat bought and sold for the same number of dollars can therefore show a gain or a loss in lari if the rate moved in between. This matters only when the sale is taxable: the gain on a home owned for more than two years is exempt. Rent is also converted payment by payment, and the property tax thresholds are set in lari.
To be added by the team: the partner accountant to confirm how the Revenue Service treats a gain that comes only from the exchange rate on a taxable sale.
How to manage the risk
Decide your measuring currency
Judge the investment in the currency you will spend the money in, and run the numbers in it.
Match debt to income
Borrow in the currency of the income that repays the loan, or not at all.
Fix the rate date in contracts
State the currency, the official rate and the date it applies to for every payment.
Convert in stages
For off-plan instalments, convert as each payment falls due rather than guessing the best day.
Keep a lari reserve
Hold several months of fees, utilities and taxes in lari so a sudden move does not force a conversion.
Test a 20% move
Recalculate rent, costs and the sale price with the lari 20% weaker and 20% stronger.
Inflation and interest rates
Annual inflation was 5.6% in September 2026, above the 3% target, and the National Bank held its policy rate at 8.25% on 21 October 2026. Higher local inflation tends to weaken a currency over time unless it is offset by inflows, so a long holding period carries more currency uncertainty than a short one. Deposit dollarization fell to 46.6% and loan dollarization to 42.5% by March 2026, which shows more Georgians saving and borrowing in lari than a few years ago.
Risks and exceptions
- Sharp moves. The lari lost almost 5% in a week in late 2024.
- Tenant strain. Dollar rents become harder to pay when the lari weakens.
- Currency mismatch. A loan in one currency and income in another.
- Tax in lari. A sale at the same dollar price can show a taxable lari gain.
- Unclear contracts. Missing currency and rate-date clauses lead to disputes.
Frequently asked questions
What is the lari-dollar rate now?
2.5982 lari per dollar on 17 October 2026, the National Bank's official rate.
How weak has the lari been?
3.4842 per dollar on 27 March 2020, in the pandemic shock.
Can a flat be priced in dollars?
Dollar prices are common, but the law requires entrepreneurs to state prices in lari; a lawyer should confirm your case.
Can I take a dollar mortgage?
Loans up to GEL 1,000,000 must be in lari from 1 July 2026, but not for borrowers who are not Georgian citizens or whose income is in the loan currency.
Are dollar mortgages cheaper?
On average 7.7% against 11.4% in lari in July 2026, but they carry the exchange-rate risk.
Is the gain on a sale taxed in lari?
Yes; both prices are converted at the official rate on their dates, if the sale is taxable.
Should rent be in dollars or lari?
Dollars protect your income but move the risk to the tenant; write the rate date into the lease.
Can anyone predict the lari?
No; plan for a large move in either direction.
Sources
- Official exchange rates (dates as shown in the table), National Bank of Georgia (accessed 18 October 2026)
- Optimal exchange rate policy, National Bank of Georgia (accessed 18 October 2026)
- Reserves at a critical level, FactCheck Georgia, December 2024 (accessed 18 October 2026)
- NBG reports 2.43 billion in net purchases in 2025, First Channel, 26 January 2026 (accessed 18 October 2026)
- Gross international reserves reach an all-time high, National Bank of Georgia, 7 September 2026 (accessed 18 October 2026)
- Lari depreciation is behind a gradual reduction in Tbilisi housing prices, ISET Policy Institute (accessed 18 October 2026)
- Sales of residential apartments fell in Tbilisi (Galt & Taggart data), GBC, 10 October 2023 (accessed 18 October 2026)
- Price of a square metre of apartments in Tbilisi (March 2020), CBW (accessed 18 October 2026)
- The value of apartment sales in Tbilisi (Galt & Taggart data), GBC, 1 September 2026 (accessed 18 October 2026)
- Organic Law of Georgia on the National Bank of Georgia (Article 34), Legislative Herald of Georgia (accessed 18 October 2026)
- NBG Order No 93/04 of 22 June 2017 on exceptions to lari pricing, Legislative Herald of Georgia (accessed 18 October 2026)
- Civil Code of Georgia (Articles 383 and 389), Legislative Herald of Georgia (accessed 18 October 2026)
- Real Estate 2026: Georgia, Chambers and Partners, 7 May 2026 (accessed 18 October 2026)
- Financial Stability Committee decision, May 2026, National Bank of Georgia (accessed 18 October 2026)
- Georgia mandates national currency for all loans up to 1 million GEL, First Channel, 1 July 2026 (accessed 18 October 2026)
- Mortgage lending in Georgia increased by nearly 50%, International Investment, 8 September 2026 (accessed 18 October 2026)
- Decrease in dollarisation of deposits, First Channel, 18 May 2026 (accessed 18 October 2026)
- Tax Code of Georgia (Articles 73, 81 and 82), Legislative Herald of Georgia (accessed 18 October 2026)
- Monetary policy rate kept at 8.25%, National Bank of Georgia, 21 October 2026 (accessed 21 October 2026)
Change log
- - Explainer published from National Bank of Georgia official rates and decisions, the Organic Law on the National Bank, NBG Order 93/04, the Civil Code, the Tax Code, ISET and Galt & Taggart.