Before we answer the question “Should YOU invest in real estate in Georgia or not?”- and before I tell you about the process of buying a property in the country of Georgia, I want to let you know some general information about Georgia and its real estate market.
People from Europe, USA, Gulf country, and rest of the world have Started to hear news about Georgia from 2005-2010, directly after the revolution of rose when Georgia started to develop its economy.
This process took place not in a short time. However, Georgia has achieved a lot since the revolution such as developing the education to be western oriented, converting the governmental services to be e-government services, Fighting corruption, open the country to foreign investors, and not to mention occupying a high position in the ease of doing business index and in the safety index.
The other side of Georgia: about the potentials of this country in making money, about the challenges which you might find if you decide to invest in real estate Georgia.
Georgia is in the second place on the list of all the countries with regard to having cost-effective lifestyle, safety, and a friendly environment for locals and visitors. According to the 2019 report of UNWTO, Georgia is 5th among the fastest-growing tourist destinations in the world, and first in Europe by percentage – the increase in the number of tourists in Georgia is phenomenal. Georgia received only 2 million international visitors in 2010, but in 2018 reached a high record of 8.7 million international visitors (10% y/y growth). Taking into consideration the fact that the population of Georgia is only 3.7 million people, it is obvious that the country is a very attractive tourist destination. It can be said that economic growth in the region from tourism reaches more than 4%.
Georgia is a regional center located on the shortest route between Europe and Asia. International visitors enjoy easy access by three international airports (Tbilisi, Batumi, and Kutaisi), a modern railway, and a visa liberalization system. Georgia has Visa-Free Regime with Citizens of 94 countries and additionally, holders of valid multi visas or/and residence permits of 50 countries may enter and stay in Georgia for 90 days within a one-year period.
Where to buy a property in Georgia?
Georgia has predominantly proved to be a highly desirable location for the hospitality and real estate sectors. Currently, the hospitality and real estate industries are the main drivers of Georgia’s economy and you can find different kind of opportunities in those sectors. There are no real estate ownership restrictions and Georgia offers considerable potential to develop entertainment destinations, medical and wellness destinations, winter-ski resorts, beach resorts, four-season destinations, and gaming facilities. So, today I’ll discuss investing in real estate because it is one of the most promising and at the same time low-risk investment directions in Georgia, and more investments are made in this sector than any other. why? for a few reasons, and the most important one is — location.
Reasons to buy a real estate in Tbilisi
In 2018, the volume of investment in real estate increased by 31% compared to 2017, while the difference between 2017 and 2016 did not exceed 20%. Along with the increase in the volume of transactions, the price per square meter also increased, averaging 6% in the case of residential real estate. Also, From 2018, new construction regulations came into force in the city of Tbilisi, aimed at improving the quality of construction. As a result, the number of building permits issued has significantly decreased by 47%, which will reduce the supply of real estate in the market in the future and lead to an increase in price. Another factor that drives prices up is tourism.
Georgia’s integration into international real estate platforms has enabled home owners to turn real estate into a source of income and earn more money than they would have received by renting in the domestic market. It is noteworthy that in recent years there has been a trend when citizens of neighboring countries move to Georgia for permanent or long-term residence. With the growth of tourism, it is expected that more and more people will decide to get involved in these activities, which will increase the demand for real estate. Also, several large investment projects are being implemented in Georgia. In addition, the low rate of urban growth which is 5% in the period from 2008 to 2019 that will significantly increase and enhance the investment potential of real estate. The combination of these and other factors allow us to predict stable growth in real estate prices in the future.
The most popular place for investing in real estate until this moment is Tbilisi- the capital city of Georgia. The real estate market in Tbilisi increases every year. Prices per square meter in the last 2-3 years are 6-7 times more than 10 years ago and it is increasing a year after year. Take into account that prices depend on the locations inside the city. As mentioned, Georgia is very popular for visitors and tourists and that’s why there are some special locations which are more popular than others. If you decide to invest in real estate and buy some apartments to rent it to tourists, you need to know that place has to be as close to the city center and touristic places as possible. For example, Saburtalo, Vera, Vake, Ortachala, Mtatsminda, and Aghmashenebeli Avenue — all these neighbors of Tbilisi are known as the most popular and most expensive places for few reasons:
This is the city center, near to historical places of the city, restaurants and bars are easy to reach, have a nice and friendly neighborhood etc. So, if you buy an apartment in these Areas you will have more chances of better income and high rental yields. You will have to buy a commercial space or a flat and then rent it by Airbnb, booking.com etc
