Nevertheless, middle-class Armenians prospered under Russian rule and they were the first to seize the new opportunities and transform themselves into a prosperous bourgeoisie when capitalism and industrialisation came to Transcaucasia in the later half of the 19th century. The Armenians were much more skilled at adapting to the new economic circumstances than their neighbours in Transcaucasia, the Georgians and the Azeris. They became the most powerful element in the municipal life of Tbilisi, the city regarded by Georgians as their capital, and in the late 19th century they began to buy up the lands of the Georgian nobility, who had gone into decline after the emancipation of their serfs.