Georgia beckons to foreigners seeking homes with its inviting climate and friendly locals. The property transactions here are refreshingly uncomplicated, mirroring processes in many other nations. The Civil Code and clear guidelines stipulate the investment requirements for purchasing, ensuring a transparent path for buyers. This requirement is mandated by law, and prices of the real estate Georgia start at $100,000 USD.
What is unique about the real estate market in Georgian?
Apartments in Georgia are attractive to foreigners because their purchase offers several advantages:
- Georgia stands out with its budget-friendly real estate options. Whether you prefer the outskirts or the city center, you’ll find attractive prices. Tbilisi offers suburban apartments at accessible rates, and prestigious locations come with competitive prices as well. In Batumi, apartments beyond the city center offer an appealing value proposition.
- Moreover, the property registration process is remarkably efficient, earning Georgia the 5th spot globally for ease of property registration in 2020, allowing you to secure property rights within a single day.
- Low maintenance budget. On average, residents in the country pay around $75 per month for utilities for an 85-square-meter apartment, covering electricity, heating, air conditioning, water expenses, and waste disposal.
- Rental income and resale potential. Demand for rented apartments increased significantly last year, leading to a 60% rise in rental prices, providing higher profits to property owners. Property prices for sale also continue to rise due to Georgia’s popularity as a tourist destination, making real estate in the country appealing regardless of migration trends.
- Possibility to purchase through an intermediary. Foreigners do not need to be present in Georgia to finalize a purchase agreement; they can appoint a trusted person to register the property on their behalf.
- Georgia’s unique advantages make property acquisition a breeze. With a visa-free regime for citizens of numerous countries, allowing stays of up to a year, the process is both swift and hassle-free. What’s more, the country boasts a favorable tax environment, with no property purchase tax and an annual property ownership tax capped at 1%.
- Furthermore, Georgia offers a diverse range of properties in various settings. While cities like Tbilisi and Batumi are well-known, there are also charming and cost-effective options in places like Bakuriani, Gonio, Gudauri, Zugdidi, Kutaisi, Martvili, Signagi, and Tskhaltubo, making it a prime destination for savvy investors.
Whether it’s your vacation home, investment, or permanent residence, Georgia promises unique experiences and opportunities.
What could be the difficulties?
An ideal country for investment, but also has certain disadvantages. Let’s look at what their cons are worth reviving:
- Rising prices. The country’s popularity among migrants has led to a significant increase in property prices. In 2022, compared to 2021, housing prices in the country increased by approximately 13%, so delaying a purchase might not be advisable. However, the fact that property values are rising can be advantageous for those buying for resale.
- Delays in new construction delivery. A building can receive a cadastral number and the right to sell even before construction begins, so owners may have to wait several years before moving in.
Before making a purchase, it is essential to consult with lawyers to make an informed decision. Despite potential complexities, real estate investments in Georgia can be successful and profitable with the right approach.