Published on and written by Cyril Jarnias
Georgia, with its unique blend of stunning landscapes and cultural riches, is becoming a land of opportunity not only for travel enthusiasts but also for real estate investors. In the midst of urban dynamism, the phenomenon of “dark stores” or windowless shops is emerging as a major trend transforming the country’s commercial landscape. These spaces, designed primarily for storing and distributing goods ordered online, are redefining how Georgian consumers access products while offering a fascinating glimpse into new economic dynamics. As Tbilisi transforms into a modern, vibrant hub, the growing presence of these discreet structures sparks debate and intrigue about their impact on the local real estate market.
Urban Warehouses in Georgia: A New Real Estate Trend
The Rise of Urban Warehouses in Georgia
The growth of e-commerce has been a key driver in the development of urban warehouses in Georgia. With the pandemic, consumers massively adopted online shopping, increasing the demand for fast and efficient logistics solutions.
The rise in delivery expectations has pushed companies to set up “dark stores” in cities. These warehouses, dedicated exclusively to order fulfillment, enable reduced delivery times, sometimes in under an hour.
Consumer habits are shifting toward immediacy, strengthening the appeal of dark stores. Companies like Glovo and Wolt have invested in these infrastructures in Tbilisi, optimizing their operations to meet growing demand.
Economic and Logistics Impact
These urban warehouses have energized the logistics sector, creating local jobs, especially for delivery drivers and order pickers. They have also spurred innovation in inventory management and automation.
However, their expansion poses infrastructure challenges. Cities must adapt their road networks and regulations to accommodate these new players while managing increased delivery traffic.
Environmental impact is also a concern. Although dark stores reduce delivery distances, their proliferation could increase emissions if fleets are not electrified or optimized.
Concrete Examples in Tbilisi
In Tbilisi, local startups and international players are testing hybrid models, combining dark stores with pickup points. These initiatives illustrate how Georgia is adapting to global trends while addressing the specifics of its market.
Good to know:
In Georgia, urban warehouses, or “dark stores,” are experiencing a marked rise due to the increase in e-commerce and a growing demand for fast deliveries, transforming consumer habits. These facilities, often set up in Tbilisi, serve solely as collection or order preparation points without customer access. They boost the local economy by creating jobs and supporting the logistics sector, while posing challenges such as adapting urban infrastructure and environmental impact. Companies like Glovo have already transformed spaces in Tbilisi into logistics hubs, but the need to manage noise pollution and increased traffic remains a challenge.
The Role of Dark Stores in Logistics Development
Definition and Operation of Dark Stores
Dark stores are warehouses dedicated exclusively to online order fulfillment, with no public access. Optimized for logistics, they enable faster inventory management and deliveries, often within 24 hours. In Georgia, they rely on technologies like automation and management software to maximize efficiency.
Impact on Local Real Estate
The rise of dark stores is shifting real estate demand, favoring peri-urban areas well-served by road networks. The required spaces are often compact but highly functional, prompting developers to adapt their offerings. Some industrial districts are seeing their value increase due to this new dynamic.
Supply Chain Optimization
These infrastructures reduce delivery times and improve product traceability. By centralizing inventory near consumption areas, they limit stockouts and streamline logistics costs. In Georgia, this has allowed several retailers to offer express delivery services, even in less urbanized regions.
Legislative Framework and Challenges
Georgian regulations, still adapting, impose constraints on operating permits and sanitary standards. Dark stores must also contend with taxation and zoning issues, which can slow their expansion despite their economic potential.
Examples and Partnerships in Georgia
Players like Glovo and Wolt already operate dark stores in Tbilisi and Batumi, in collaboration with local supermarkets. Their annual growth exceeds 30%, reflecting rapid consumer adoption. Recent data indicates that the number of dark stores has doubled since 2022, supported by the rise of e-commerce.
Good to know:
Dark stores, true hidden warehouses exclusively dedicated to processing online orders, are transforming the logistics landscape in Georgia. Strategically designed to optimize delivery speed, these sites are often located in urban areas with high demand, leading to a revaluation of suitable real estate spaces and increased pressure on certain locations. By integrating dark stores directly into the supply chain, companies significantly improve efficiency and reduce delivery times. However, local legislation poses challenges for operators, particularly regarding land use and traffic regulations. Notable examples include partnerships with retail giants like Glovo and Bolt, illustrating their growing role in Georgian commerce. The rapid expansion of these infrastructures, with strong growth reported in 2023, reflects the evolution of consumer habits and the digitalization of commerce in the country.
E-commerce Investment and Its Impact on the Georgian Market
Growth of E-commerce Investment in Georgia
The e-commerce sector in Georgia is experiencing rapid growth, with investments increasing by over 30% in 2022. Key players like Glovo, Wolt, and local platforms are expanding their operations, driven by rising demand for fast deliveries and online services.
Impact on the Real Estate Market
This expansion has led to increased demand for dark stores, urban warehouses dedicated to online order fulfillment. Commercial property prices in central areas of Tbilisi have risen by nearly 20% in one year, reflecting this market pressure.
Urban Dynamics and Regulations
Local authorities are slowly adapting regulations to govern these new uses, particularly regarding zoning. Some residential neighborhoods are seeing their balance disrupted by the establishment of these logistics infrastructures, sparking debates on urban planning.
Long-Term Outlook
In the long term, the Georgian real estate market is expected to continue transforming, with a rise in hybrid spaces combining online and physical commerce. Investors anticipate sector consolidation, with opportunities in less saturated peri-urban areas.
Good to know:
Investment in Georgian e-commerce has significantly increased in recent years, with 15% growth in 2022 and the emergence of new local and international players like Glovo and Wolt. These investments are largely directed toward developing “dark stores,” requiring more suitable premises, which directly influences commercial real estate demand and prices. While Tbilisi and Batumi see accelerated development of these spaces, local regulations aim to channel this expansion to preserve urban balance, and the government is working on tax incentives to encourage even greater investments. In the long term, the Georgian real estate market is likely to benefit from this digital transformation, though legislative adjustments are needed to govern this growth while boosting the local economy.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
