Market value: an estimate for a date, not a price someone paid
Market value is the estimated amount for which a property should change hands on a given date between a willing buyer and a willing seller, at arm's length, after proper marketing, with both acting knowledgeably, prudently and without compulsion. That is the International Valuation Standards (IVS) definition. Georgian bank rules use a shorter version of it: NBG Order No 84/04 of 14 May 2018, the instruction on real estate valuation for commercial banks, defines საბაზრო ღირებულება in Art. 2(კ), bases itself on IVS (Art. 1(2)) and sends banks to IVS where it is silent (Art. 1(4)).
Georgian statutes use the term without defining it and say instead who fixes the figure. The Aliens Law grants a residence permit for property whose market value exceeds the GEL equivalent of USD 150,000 (Article 15(j); Georgian text: 15(კ)), set by a certified valuer of an accredited body. The Tax Code charges property tax on market value (Art. 202(5)), and there the owner enters the figure.
In everyday English, "market value" and "market price" blur together. Georgian law keeps them apart: საბაზრო ფასი (market price) is a separate Tax Code term, defined in Art. 18.
What each part of the IVS wording rules out
Bases of value sit in IVS 102 in the edition effective 31 January 2025 (IVS 104 in the 2017 to 2022 editions). We quote the January 2026 exposure draft for 2028, which keeps the core sentence; we could not confirm the paragraph number in the current edition.
| Phrase | What the IVS commentary says |
|---|---|
| Estimated amount | "An estimated amount rather than a pre-determined amount or actual sale price" |
| On the valuation date | Time-specific: may not hold at another date |
| Willing seller | A hypothetical owner, "neither an over-eager nor a forced seller" |
| Should exchange | "The most probable price reasonably obtainable in the market on the valuation date" |
| Special terms excluded | No price inflated or deflated by atypical financing, sale and leaseback, concessions, or value open to one buyer only |
The IVS also defines market rent, equitable, investment, synergistic and liquidation value. Liquidation value is what is realised "with the seller being compelled to sell"; investment value is "the value of an asset to a particular owner or prospective owner". A report on another basis does not answer a question the law frames in market value.
Where Georgian law runs on market value, and who sets the number
| Setting | Rule | Who fixes the figure |
|---|---|---|
| Residence permits | More than $150,000, Art. 15(j); more than $300,000 for the investment permit, Art. 15(h) (Georgian: 15(თ)) | Certified valuer of an accredited body |
| Property tax | 0.8% to 1% of market value, Tax Code Art. 202(5) | The owner, on the return |
| Bank collateral | NBG Order 84/04, based on IVS | The bank's valuer |
| Enforcement auction | Start prices 75%, 50%, 10% of market value | Enforcement bureau (Enforcement Law Art. 47) |
| Title claim in court | Claim value = market value, Civil Procedure Code Art. 41 | The claimant; fees follow it |
| Expropriation | Compensation of "the same market value", Art. 1(f) | Expropriator with an independent expert; court if disputed |
The NBG instruction adds that the valuer's fee "არ უნდა იყოს დამოკიდებული უძრავი ქონების საბაზრო ღირებულებაზე", must not depend on the market value found (Art. 3(3)). Method and report contents are in our entry on property valuation.
Residence rules test the figure once: Art. 16(3) exempts a 15(j) permit holder who keeps the property from a re-valuation on extension, and since 1 September 2026 (Law 1803) the D5 visa works the same way. In expropriation, the owner may hire his own experts (Art. 6(1)), compensation may not fall below the expropriator's valuation (Art. 6(2)), and a court makes the final evaluation (Arts. 8, 9).
Market value on the tax return, and the separate "market price"
Since Law No 1874 of 30 September 2026, Tax Code Art. 202(5) taxes individuals' property other than land at 0.8% to 1% of market value "at the end of the year preceding the current calendar year" (მიმდინარე კალენდარული წლის წინა წლის ბოლოს არსებული). Tbilisi and Batumi apply 0.8%. Property other than land is exempt if family income in the preceding year did not exceed GEL 100,000 (Art. 206).
No valuer stands behind this number. Instruction 996 on tax administration, Art. 91, heads column 4 of Part V of the return "დასაბეგრი ქონების საბაზრო ღირებულება (ლარი)", and the owner fills it in. We found no rule requiring a report for it; see our guide to property tax for individual owners. Companies pay on book value, but in an audit the authority may tax their real estate other than land at market price where it exceeds book value by more than 10%, and the company then keeps that price for 3 tax years (Art. 202(4-1), Instruction 996).
| Expression | Georgian | Used for |
|---|---|---|
| Market value | საბაზრო ღირებულება | Individual property tax, Art. 202(5) |
| Market price | საბაზრო ფასი | Related-party deals or a misstated price, Art. 18(11); gifts and inheritance, Art. 82(4)(b.b); company audits |
Market price is the supply-and-demand price for identical or similar goods between unrelated persons, at the time of supply or from deals within 30 calendar days either side (Art. 18). Our guide to tax on a sale applies it to sellers.
Price statistics measure offers, not market value
Geostat's Residential Property Price Index for Q2 2026 (released 23 July 2026) rose 4.9% year on year and stood 63.8% above its 2020 average. It covers only Tbilisi new-builds and is built from "offer prices" (შეთავაზების ფასი) on myhome.ge and ss.ge with a hedonic model. Galt & Taggart even uses "market value" for total segment sales, such as "$16 million" for Bakuriani in Q3 2024. Neither figure is the market value of one flat.
Where the figure is printed, and where it is missing
- Valuation report. Headed "უძრავი ქონების შეფასების ანგარიში". In a sample published by Baghdati Municipality (No 248 of 13 October 2020), the conclusion states the value as at 13 October 2020, and section I names the purpose; there the basis was a starting privatisation value. Read purpose and basis before the number.
- Residence permit file. The agency's checklist wants proof of market value from a certified assessor of an accredited body; it reads that line, not the contract price. Steps are in our guide to the accredited valuation for a residence permit.
- Tax return. Part V, column 4, in GEL, filled in by the owner.
- Bank report. It states a market value for the collateral. NBG Order 44/04 (Art. 2(1)(ნ)) measures loan-to-value against that market value, capped at 90% for lari and 70% for foreign-currency loans (Art. 4(1)(b), Annex 2), unless income from abroad is proven and the borrower pays at least 20% in cash (Art. 1(9)(b)).
- Public Registry extract. No value field: Order 487, Art. 6(4), lists rights, area and owner, not prices. See reading the extract.
- Listings. ss.ge and myhome.ge show an asking price and a price per square metre, never a market value.
Worked example: how many square metres clear USD 150,000?
A buyer planning a residence permit asks what size of Tbilisi flat might pass. Galt & Taggart's December 2025 weighted average prices (USD per m², sourced to the Public Registry) give a first screen, by our calculation:
| Segment | Weighted average price | USD 150,000 divided by price |
|---|---|---|
| New-build | USD 1,373 per m² | 109.2 m² |
| Resale, post-2013 permits | USD 1,316 per m² | 114.0 m² |
Averages describe a segment; Art. 15(j) runs on one valuer's figure for one flat on one date, and it must be "more than $150,000". Our guide to the $150,000 threshold shows the lari conversion. On tax, an illustrative market value of GEL 300,000 (an input, not a market figure) gives GEL 2,400 a year at 0.8%, or GEL 3,000 at 1%, and nothing if family income was GEL 100,000 or less.
Easily confused: price paid, normative price, forced-sale value
| Term | How it differs from market value |
|---|---|
| Contract price | A fact about one deal between named parties, not an estimate between hypothetical ones |
| Normative land price | A council formula for public land that only takes market prices into account |
| Liquidation value | Assumes a compelled seller; enforcement auctions also start below market value, at 75% |
| Book value | A company's accounts figure, replaced by market price only in an audit |
Telavi's normative price (Resolution No 06 of 27 February 2026) multiplies GEL 0.24 per m² by 0.53, a zone index and a coefficient, giving GEL 330.72, 127.20 or 57.24 per m². We found no current Tbilisi act.
Market value in five languages
| Language | Market value | Market price (Tax Code Art. 18) |
|---|---|---|
| Georgian | საბაზრო ღირებულება | საბაზრო ფასი |
| English | market value | market price |
| Russian | рыночная стоимость | рыночная цена |
| Hebrew | שווי שוק | no confirmed form |
| Arabic | القيمة السوقية | السعر السوقي |
The Aliens Law, the NBG instruction and the tax return all write საბაზრო ღირებულება, and a re-valuation is "საბაზრო ღირებულების ხელახალი შეფასება".
Mistakes people make with market value
- Treating the contract price as proof. A price above USD 150,000 does not replace the valuer's figure.
- Ordering the wrong basis. Liquidation, insurance or privatisation value answers a different question.
- Quoting a city average for one flat. Averages ignore floor, view and condition.
- Mixing the two Tax Code terms. Gifts use market price; annual property tax uses market value.
- Paying for a report at every renewal. For a 15(j) permit, Art. 16(3) makes it unnecessary while you keep the property.
To be added by the team: scans for the team to add: the conclusion page of a redacted Georgian valuation report with the basis, date and value lines marked; Part V of a blank property tax return with column 4 highlighted; a redacted extract showing it has no value field.
Checking a market value figure step by step
Name the purpose
Permit, bank loan, tax return or court.
Check the basis
The report should say market value.
Read the valuation date
The figure holds "as at" that day only.
Confirm who signed
For a permit, a certified valuer of an accredited body.
Compare with market data
Averages are a sense check, never proof.
Keep the report
File it with the title papers.
Frequently asked questions
Is market value the price I paid?
No. It is an estimate of the most probable price on a date between willing, unrelated parties.
Which Georgian text defines it?
NBG Order 84/04, Art. 2(კ), for bank valuations.
Who sets it for a residence permit?
A certified valuer of an accredited body, under Aliens Law Art. 15(j).
Do I need a new valuation to renew?
No, while you keep the same property (Art. 16(3)).
Which date counts for property tax?
The end of the year preceding the current calendar year (Art. 202(5)).
Does the registry extract show it?
No. The extract has no price or value field.
Is market price the same?
Not in Georgian tax law; market price is defined in Tax Code Art. 18.
Are Geostat figures market values?
No. They index asking prices for Tbilisi new-builds.
Sources
- IVS effective 31 January 2028, Exposure Draft, IVSC, IVS 102 (accessed 1 November 2026)
- New IVS effective January 2025, Acumentis
- NBG Order No 84/04 of 14 May 2018, Arts. 1 to 3
- NBG Order No 44/04 on lending to individuals, Arts. 1, 2, 4
- Law on the Legal Status of Aliens and Stateless Persons, Arts. 15, 16 (accessed 1 November 2026)
- Tax Code of Georgia, Arts. 18, 82, 202, 206, with Law No 1874; Instruction 996, Art. 91
- Law on the Procedure for Expropriation of Property for Pressing Public Needs, Arts. 1, 6, 8, 9
- Telavi Municipal Council Resolution No 06 of 27 February 2026
- Residential Property Price Index, Q2 2026, Geostat
- Tbilisi Residential Real Estate, December 2025, Galt & Taggart
- Valuation report No 248 of 13 October 2020, Baghdati Municipality
Change log
- - Glossary entry published from the IVSC, Acumentis, the National Bank of Georgia, the Law on the Legal Status of Aliens and Stateless Persons, the Tax Code of Georgia, the Expropriation Law, Telavi Municipal Council, Geostat, Galt & Taggart and Baghdati Municipality.