Property business has become one of the main pillars of Georgian economy in the last decade.
Thanks to the high level of security and smooth regulations, a great amount of investment has been attracted to this country.
More and more visitors come to Tbilisi for a relaxing vacation to enjoy wine and cuisine of this beautiful Caucasian nation.
More international visitors have caused a surge in the need for property development. As a result, investors have become interested in this field. Some of these investors are those who are interested in buying the land rather than built properties.
If you are one of them, then let’s discuss a few things you should consider before making a purchase or the decision to put your capital in this side of the business:
Types Of Lands
In Georgia, lands are divided into two categories. Agricultural and Non-agricultural.
Let’s break them down and see what each pertains:
As suggested by the name, these are pieces of land in rural areas designated for the purpose of farming and related activities.
These lands are naturally cheaper than non-agricultural lands in terms of monetary value. Nevertheless, these lands have a lot of potential given the emerging economy of Georgia.
However, you should remember that since 2018, only Georgian citizens are eligible to own these lands.
These refer to any area of land which is not designated for the purpose of farming and related activities. Residential and industrial areas are all included in this category.
Given the fact that residential areas are highly saturated by investors and there is a higher level of risk and return, experts suggest industrial areas will be the word of the day in the days to come.
Opportunities And Risks
Now that we are familiar with the types of land in Georgia, it is time to evaluate potentials and challenges ahead of investment in this field
- Georgian economy is growing very fast and so are values
- Georgia is one of the safest countries in the world which makes it a perfect choice for safe investment.
- Georgia has milder regulations when it comes to foreign investment.
- Given the speedy growth in economy, industrial land is becoming highly valuable
- Tourism has flourished in the last few years which is good news for the real estate business
- Georgian currency has remained relatively stable compared with other countries in the region
- Residential lands especially in the capital have been the center of attention by investors.
This has caused a high level of demands in one field which may cause fluctuations in risk and return rate.
- Due to lack of information, investments are often made in highly regulated areas (Old Tbilisi for instance). Due to these regulations, it may take a very long time for owners to gain the necessary permissions.
Georgia, which is known as the bride of Caucasia, has enjoyed a sweet and speedy growth in the last ten years. Thanks to its wonderful location and natural and social resources, it has become a popular tourist destination.
Georgia and its mild investment regulations for foreigners are currently attracting international capital into the economy. One of these popular investment areas is lands.
Potential investors can enjoy a wide range of opportunities for growth and ROI. All they have to do is remain informed about the conditions of their target area.
At Realtyguide, we have experienced investment consultants who provide service beyond ordinary brokers and developers.
If you are interested in receiving more information about what else Georgia has to offer, please check out the following: Best places to Invest in Georgia