Functional zones: what they mean and what challenges landowners might face

When purchasing a plot of land, designing a project, or applying for a building permit, one of the first things to check is its functional zone. The functional zone determines whether a plot can be used for construction, what type of building can be placed on it, and the permitted scale of development.

A functional zone is more than just a color or technical designation on a map. It can directly impact the market value of the land, its development potential, and the owner's ability to utilize the property.

How is urban planning carried out?

Under current legislation, urban planning documents include:

• General plans;
• Development plans;
• Detailed development plans.

These plans are normative administrative-legal acts consisting of both text and graphic components. Each urban planning document must hierarchically align with the higher-level plan.

In Tbilisi, the following terms are still widely used: General Land Use Plan and Development Regulation Plan. The general plan defines the city's primary development directions, principles for land use, functional zones, core engineering and transport infrastructure systems, non-buildable areas, and other urban planning matters.

Development plans and detailed development plans establish more specific conditions. They define functional sub-zones, permitted building uses, development coefficients, height, number of stories, minimum plot sizes, red and blue lines, parking requirements, utility networks, and other parameters.

What is a functional zone?

According to the law, a functional zone is a regulated area with shared characteristics, purposes, and usage conditions, subject to specific restrictions. A functional zone can be divided into sub-zones with more specific characteristics.

Functional zoning distinguishes between:

• Construction areas;
• Non-construction areas;
• Conditions for the use and development of territories.

Furthermore, functional zoning determines what type of building or structure may be constructed in a specific area and what restrictions must be considered during its development. Changing an existing functional zone requires an amendment to the relevant urban development plan.

General and specific functional zones

The regulations for the use and development of the territory of Tbilisi Municipality distinguish between general and specific functional zones.

General functional zones define the primary direction for the use of the city's territory. In Tbilisi, these zones include, among others:

• Landscape-recreational zone;
• Agricultural zone;
• Recreational zone;
• Special zone;
• Transport zone;
• Public-business zone;
• Industrial zone;
• Sanitary zone;
• Forestry zone.

Specific functional zones, or sub-zones, establish more detailed conditions for the use and development of a territory. Examples include Residential Zone 1, Residential Zone 2, Residential Zone 6, Public-Business Zone 1, Recreational Zone 1, and Recreational Zone 2.

These sub-zones determine both the permissible function of buildings and structures and the intensity of construction development. For instance, Residential Zone 1 is a low-intensity residential sub-zone, while Residential Zone 6 is a relatively high-intensity sub-zone focused on multi-apartment residential buildings.

What do K-1, K-2, and K-3 define?

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Functional zone regulations typically establish three primary coefficients for land plot development:

K-1 — Building footprint coefficient
Determines the maximum portion of a land plot that can be occupied by a building or structure.

K-2 — Building intensity coefficient
Determines the ratio of the total permissible floor area of a building's ground and upper floors to the total area of the land plot.

K-3 — Landscaping coefficient
Determines the minimum portion of a land plot that must be reserved for landscaping and permeable surfaces.

However, the development potential of a specific plot is not determined solely by these three coefficients. One must also consider the plot's area, width, depth, access roads, building height and placement, setback zones, cultural heritage and environmental restrictions, utility networks, and other factors.

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Most common issues related to functional zones

Issue #1 — The land plot is located outside the development boundary

Urban planning documentation for the capital distinguishes between developed and undeveloped areas. Areas located outside the development boundary are generally subject to stricter restrictions for urban construction and are often designated for landscape-recreational, agricultural, forestry, or similar uses.

However, the mere fact that a land plot is located outside the development boundary does not always provide a definitive answer regarding the feasibility of construction.

In practice, the following must be verified:

• The specific functional zone of the plot;
• Whether the area is designated for construction or non-construction;
• Existing actual development in the vicinity;
• Connectivity to roads and utility infrastructure;
• Environmental, geological, and other special restrictions;
• Existing or pending urban development plans.

Accordingly, the development potential of a plot located outside the building contour must be assessed on a case-by-case basis.

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Problem #2 — The plot is located only within a general functional zone

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It is possible for a plot to be designated only as a general residential, public-business, or other general functional zone without having a specific sub-zone.

This creates a problem because the precise building parameters for a plot are typically defined by the regulations of a specific functional zone. A general functional zone may indicate the primary direction for the area's development, but it may not be sufficient for processing a specific project.

Possible solutions include:

• Preparation of a development plan or a detailed development plan;
• Amending the existing urban development plan;
• Approval of a specific zoning map;
• In cases permitted by law, defining the conditions for the use of the plot for construction based on an urban planning study of the surrounding area.

In certain cases, Tbilisi's regulations allow for the use of a plot within established development conditions even before a comprehensive development plan is prepared; however, this is not automatic, and the project must not substantially alter the character of the established development.

Problem #3 — The plot falls into multiple functional zones

It is common for a single cadastral unit to be partially located, for example, in a residential zone, while another part falls within a recreational or transport zone.

As a general rule, in such cases, the development of the plot must not violate the requirements of any of the zones.

There is an important exception to this rule: if a specific functional zone covers at least ¾ of the land plot area, the requirements of that zone may be applied. In such cases, current Tbilisi regulations additionally require compliance with the regulations for Recreational Zone 1.

For example, if a residential zone covers 80% of a plot and another zone covers 20%, it is possible to apply the regulations of the primary zone. However, it must first be assessed whether the second zone constitutes a non-construction area, public space, transport zone, or another area with a special designation.

Accordingly, the ¾ rule should not be perceived as a basis for the automatic cancellation of any restrictions.

Problem #4 — The land plot does not meet the zoning construction parameters

A land plot may be located within a construction functional zone but fail to meet one or more of the established requirements, such as:

• Minimum area;
• Minimum width or depth;
• K-1, K-2, or K-3 coefficients;
• Building height or number of stories requirements;
• Setback zones and building placement rules;
• Number of parking spaces;
• Access or engineering infrastructure conditions.

Such non-compliance does not always mean that the development of the plot is ultimately impossible. Depending on the circumstances, options such as plot consolidation, boundary adjustment, project modification, establishing different parameters through a detailed development plan, or utilizing other mechanisms provided by law may be considered.

Current legislation allows for the possibility of establishing different parameters for an individual plot within a development plan or a detailed plan in certain cases.

Tbilisi also has a special zoning agreement mechanism, though it does not serve as a means to freely change all construction parameters. A special zoning agreement is an exceptional mechanism used only in cases directly defined by the rules—including to permit certain types of use or to exceed the threshold values of K-1 and K-2 when the appropriate legal prerequisites are met.

To obtain it, an urban planning study and justification are required, demonstrating that the exception is necessary for the rational and efficient use of the territory and does not alter the overall urban planning character of the surrounding area.

Problem #5 — The land plot is in a functional zone where construction is prohibited or strictly limited

The most difficult case is when a privately owned land plot falls within a forestry, landscape-recreational, recreational, or other non-construction or strictly limited zone.

For example, all construction is prohibited in Tbilisi Recreational Zone 2, except for exceptions explicitly defined by regulation. In non-construction areas, construction may be permitted in specific cases only if it is driven by the function that the respective zone is intended to protect.

In such cases, the following must first be determined:

• When and by what legal act the current zoning was assigned to the plot;
• What the factual situation was at the time of zoning;
• Whether there was established development on the territory;
• Whether a construction functional zone or a previously issued permit applied to the plot;
• Whether there is an urban planning basis for changing the functional zone;
• To what extent the restriction is justified by public interest;
• Whether the owner is being burdened with a disproportionate and excessive load.

A change in a functional zone is carried out by amending the relevant urban development plan and requires urban, infrastructural, environmental, and legal justification.

If an administrative body refuses to change a functional zone or determine the possibility of construction, the owner can appeal the decision through administrative channels or in court.

In such disputes, the court examines not only whether the authority to impose the restriction existed formally, but also the justification for the decision—whether the factual circumstances were properly investigated, whether less restrictive alternatives were evaluated, and whether a fair balance between public interest and private property rights is maintained.

Spatial planning legislation also explicitly requires the reconciliation and balancing of public and private interests.

Success in court does not automatically mean that the land plot will necessarily be assigned the functional zone desired by the owner. The outcome depends on the specific factual situation, the form of the request, the type of disputed act, and the urban planning and legal justification provided.

What should be checked before purchasing a land plot?

Checking only the public registry extract for a land plot is not enough. Before purchasing, it is advisable to evaluate:

• The general and specific functional zone;
• The building footprint;
• The construction or non-construction status of the zone;
• The K-1, K-2, and K-3 coefficients;
• Minimum plot area and dimensions;
• Permissible building functions;
• Cultural heritage, environmental, and other special regulations;
• Access to roads and utility networks;
• Active or pending urban development plans;
• Feasibility of zoning changes or other legal mechanisms.

Conclusion

The functional zone is a primary, but not the only, component in assessing a plot's development potential. Even plots within the same functional zone may have vastly different development possibilities due to their size, shape, location, surrounding development, infrastructure, and additional legal restrictions.

Therefore, the existence of a functional zone is not an automatic guarantee for construction, nor does a restricted zone always mean that there is no legal solution.

Before purchasing land, starting a design project, or submitting an application to an administrative body, it is essential to conduct a comprehensive assessment of the plot's urban planning and legal status. This helps the owner avoid purchasing land that cannot be developed or assists in selecting the right legal and design mechanisms to resolve existing issues.

This article is based on regulations in effect as of July 2026 and serves as general information. Assessing a specific plot of land requires an individual study of its cadastral data, urban planning documentation, and actual conditions.

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