Summary 

The financial, economic, political, cultural and demographic changes is permanently affect real estate market price in the country. Institutional-economic reforms are of particular interest to economists, as it is the outcome of the mentioned reforms all the other changes in the economic sense of the country.

The article deals with institutional and economic reforms implemented in Georgia in the 1990s. These reforms had a significant impact on the formation of real estate market price in different periods of time.

Determining the real estate price is a complex and dynamic process especially in terms of institutional reforms, economic transformation in Georgia. Gathering information for determination of real estate price is being acquired by the institutional sectors of the Georgian economy (non-financial corporations, financial corporations, non-profit organizations, state governments, households), purchasing and construction of buildings and capital or ongoing renovation regulations on the expenses incurred on land acquisition and its substantial improvement; As well as information on the value and volume of the facilities purchased by institutional sectors within a given period. Changes in these factors lead to a change in demand for real estate, which in turn determines the formation of real estate market price. The study also showed that the change in demand for immovable property also has a significant impact on the change in population revenues in different periods, especially for real estate prices in Tbilisi. It should be noted that the cost of the commercial area in the capital is about 2 times (in some areas) exceeds the living space and even more land market prices. In the case of Tbilisi, the change of demographic factor should be taken into consideration over time.

The change in economic indicators during the reforms is hard and predictable. However, it is noteworthy that almost all institutional and economic reforms have been reflected in the overall level of public well-being. Finally, the market value of real estate in Georgia was almost uninterrupted (with regard to the August war), with a steady growth trend. Nevertheless, Georgia's real estate market price is significantly lower than in the neighboring countries. It is noteworthy that regular research in this direction would allow the country to identify the relevant economic orientation and strategy.