The Georgian Real Estate Market remains a newly and recently opened market for foreigner buyers and investors. But the economy and the political stability of the country are aimed to develop and attract new potential for international clients. And it is the perfect moment to invest in property in Georgia due to improved financing and fast growing economy. In this article we will talk about where to find the right property for investment in Georgia.
Situation in Construction Development
Recently published results by the National Statistics Office of Georgia show that in 2018 the total number of structures is decreased by 14%. But these structures covered 60% more space compared to 2017.
During the Q1 2019, a big part of construction completed was in the regions: Tbilisi (40.5%) and Kakheti (12.6%).
Also, a relatively large share of construction permits was granted for multifunctional residential complexes. It’s important to know because this type of building is more valuable for rent/ sale among tourists and locals.
Real Estate Development Trends
Tbilisi region
Tbilisi is the most important city in terms to Buy/Sell property in the whole country.
Approximately 40% of sales were in the Tbilisi Region, of which 65% was driven by newly constructed apartments and complexes.
Mainly, people have chosen to buy in Saburtalo, Vake and Samgori districts. The reason is the price which is cheaper than in Old City. But also, these districts are renovated or still under construction, and very close to the center with a good infrastructure.
Of course, there are other interesting and unique districts as Old Tbilisi and Mtatsminda.
Old Tbilisi has a lot of potential for investment, because it’s the heart of the capital, and all touristic and historical places are 10-20 minutes away on foot. Almost everywhere are buildings of the 19th or first half of the 20th century that might require some investment to maintain it.
Mtatsminda district is located on the mountain and has a beautiful view of the city. Today, it’s considered as the most expensive district in Tbilisi. However, if you’re interested to buy or rent a property there, you should plan to get a car or another transport. The reason that it’s more difficult to reach the center or stores, compared with the other central districts.
Ajara region
This region is ranked #2nd by sales with 12% in the entire country. Ajara is well-known among tourists by Batumi – the tourist capital of Georgia and sea resort of Black Sea coast.
Not only tourists, but a lot of investors are involved in the development of the region.
There, we can find a huge number of International hotel brands and skyscraper hotel-apartments for sell and rent. Moreover, Batumi has an exciting city-center with the last century architecture.
So, it’s an excellent place for investment in Real Estate.
Now, the price of 1m² is lower than in Tbilisi and starting from $450. Basing on some predictions, it may increase by 30% in the near future, so now is the perfect time to invest.
Kakheti region
Another popular region for tourism – Kakheti, which is mostly known by wine production through the centuries. In the last 10 years, the region has been developed by government and private investments in agriculture and tourism spheres.
Real Estate sales represent about 10% of the local market there. Comparing with previous popular regions, Kakheti doesn’t have big cities and skyscrapers, but this place is rare and has ancient monuments and monasteries as well as nature. Generally, those who purchase a property there are locals, and the type of the property is a house or villa. Foreigner buyers are less common but existing. It may be explained because it’s a quiet place full of traditions, landscapes and wine. And let’s not forget about potential tourists who visit this region.
Imereti region
The region is found on the west end of Georgia and its capital is Kutaisi. It is the 3rd most populous city of the country and the 2nd in importance after Tbilisi. It served as the capital of the Kingdom of Georgia in the Middle Ages. Today, it looks like a small capital city mixed with Kakheti region styles.
The sales of property are less representative comparing with the previous regions, but it may be explained by the early stage of development. There is already a good infrastructure, 1 international airport and even Free Economic Zone as in Tbilisi. Since 2012, almost 30 development projects have been completed to attract new tourists and foreign companies to the region. Rental rates in Kutaisi take the 3rd place after Tbilisi and Batumi.
You might also be interested in: The Best Places To Invest In Georgia
