The seat has been Republican since 1979, but Mr Ossoff had emerged as a strong and much-liked candidate.
Mr Ossoff, a documentary film-maker, added: “We showed the world that in places where no-one thought it was even possible we could fight."
The 30-year-old former congressional aide nearly won the seat outright in the primary, receiving 48.1 per cent of the vote. At that time, Mrs Handel took just 19.8 per cent.
The congressional election was the most expensive ever, costing a reported $50 million. The district is home to about 58,000 Jews, equating to about eight per cent of its overall population, according to the Forward.