Why is Georgia becoming attractive for real estate investments?

A new investment project is launching in Georgia, offering excellent opportunities for profit. Besarion Badgelidze, or simply Beso among friends, notes that there is an active discussion online about how great life is in Georgia and how easy it is to buyreal estate here. This phenomenon has not accidentally been dubbed the "Georgian miracle": there is virtually no bureaucracy, and all processes are simplified to the utmost. Interestingly, these opinions are expressed by both locals and foreigners who have been able to experience the advantages of living and working in this wonderful country for themselves.

The process of acquiring real estate

One of the standout aspects is related to purchasing real estate: the process of obtaining ownership documents takes just five minutes. It's such a quick procedure that notaries or long queues are not required. Moreover, the cost of these services is around 15 dollars. Additionally, there are no property taxes in Georgia, making real estate acquisition even more appealing. Let's not forget about business opportunities: you can register your own enterprise in just a few minutes. For example, if you work in real estate or are in creative professions, your tax contributions will amount to just1%from the total income. All processes are as convenient as possible!

Taxation in Georgia

In the field of taxation, Georgia also demonstrates excellent results. Tax returns can be filed from home without the need to visit tax authorities. Every taxpayer has the option to use a personal account on the tax service's website, where all necessary operations can be conducted, even via mobile phone. The complete absence of bureaucracy significantly simplifies the process of doing business in Georgia compared to other countries.

I mean my experience of starting a business in Ukraine, where, as a non-resident, I had to face numerous administrative challenges. Waiting for permits from the tax service sometimes took as long as two months, and the situation at the bank was similar. In Georgia, however, there are no such difficulties.

International achievements of Georgia

As of 2020, Georgia demonstrates strong positions in various international rankings. In particular, it holds:

• 1st placein terms of safety in Europe according to Numbeo data;
• 4th placeon the ease of property registration according to the Doing Business report;
• 6th placein the global safety ranking;
• 7th placefor the simplicity of doing business;
• 9th placeon the affordability of living and vacationing around the world.

It is clear that the absence of bureaucratic barriers in conducting transactions is a significant advantage. However, it should be understood that the ease of purchasing real estate is not the only reason for choosing this area for investment.

The practical aspect of Batumi

Let's take a closer look at Batumi. From a legal standpoint, issues are resolved without much difficulty. Another important aspect is the cost of real estate. In the region, you can still find apartments starting from400 dollarsper square meter. Of course, it won't be housing on the first line from the sea, but in Batumi, there are four parallel streets, and in any case, you can reach the sea in five minutes.

There are also more expensive options, for example, with a cost of around2000 dollarsper square meter. But even in such cases, the real estate market remains quite accessible, allowing it to be used for personal needs and then passed down to children and grandchildren. It is important to note that there are no taxes to be paid on the property: if you leave for a while, just close the apartment, and that's it! No additional expenses or utility bills. And it is worth emphasizing that over time, prices for most apartments generally increase. Thus, Georgia is becoming a truly attractive place for both living and investing in real estate and business.

The popularity of apartment construction in Georgia

Recently, there has been a growing interest in Georgia for the construction of apartments operating on a hotel basis. The management company closely monitors the condition of such properties, allowing owners to earn profits while ensuring income for themselves. Low real estate prices combined with high demand during the tourist season provide owners with the opportunity to recoup their investments within a period of five to seven years.

The absence of bureaucratic obstacles

One of the main advantages of Georgia is the almost complete absence of bureaucratic delays. All procedures are significantly simplified, allowing tourists to stay in modern high-rise buildings in Batumi. However, just a little further on, you can see a completely different, captivating side of life, where luxury coexists with poverty, creating a striking contrast.

A trip to Georgia

I invite you to visit Georgia so you can experience this amazing country for yourself. Everyone has their own idea of beauty and aesthetics. For example, one meadow may have only one type of flower, while another may have many different kinds. Which one do you find more appealing?

The historical significance of Georgia

I understand that you may have doubts. Let's look at the situation from another perspective. Georgia has a rich history dating back to the 4th century BC. During the Soviet Union, it was one of the most economically developed republics, and even today you can find architectural monuments in the villages that neighboring countries only started to build later.

The uniqueness of local cuisine

Undoubtedly, it's nice to stroll through the central streets of Paris and admire the Eiffel Tower. But I have a desire to delve into the countryside and try authentic local dishes, prepared at home or in small cafés. Often, modern restaurants serve interpretations of traditional cuisine that differ significantly from the original.

Emotions and impressions

Georgia offers an incredible array of emotions that are becoming increasingly rare in our world. These feelings are undoubtedly desirable. Technical innovations and new buildings no longer surprise anyone, but you can leave Georgia with vivid impressions. Perhaps this is just my opinion, but many buyers of our real estate think the same way.

Investment attractiveness of Georgia

You raised the question of Georgia's attractiveness to investors. However, your company, although one of the oldest in the market, has only been around for 15 years — a relatively short time for Europe. It gives the impression that interesting offers are not backed by a long-term history. At the same time, you claim that investments are reliable and that the payback period is five years, which seems almost unbelievable. As we know, it's hard to believe in miracles.

Wonders and opportunities in investments

Some time ago, Bitcoin was also seen as a hobby for enthusiasts, when 10 bitcoins were worth the same as a pizza, and now its value is measured in hundreds of thousands of dollars. We can't guarantee everyone that investments in real estate will definitely pay off. We can only offer emotions, and this is undoubtedly our main source of income.

Prospects for construction in Georgia

However, let's explore the situation from a different perspective. Since 1992, there has been almost no new construction in Georgia. The land remained undeveloped, and new building projects were not undertaken. However, starting in 2005, the process of active construction began, opening new horizons for investment and regional development. This process is just starting to gain momentum, and therein lies great potential for the future.

Introduction

In our previous conversations, we discussed the concept of democracy in detail and talked about creating functional and effective law enforcement structures, as well as implementing a taxation and customs control system. All these aspects have become cornerstones for our progress moving forward.

Development of the construction industry

We have made a decision to actively develop the construction industry. Currently, there are specific data that cannot be ignored. The flow of travelers to Georgia has noticeably increased. Since 2005, there has been a steady growth in gross domestic product, as well as an increase in the volume of foreign exchange transactions and the purchasing power of the population.

Of course, in 2020 the market faced numerous challenges. However, if it weren't for the restrictions imposed by the pandemic, we could have been talking about a growth in active tourists of 10-20% compared to previous years. My assumptions are based on the preliminary orders and bookings that were made even before the quarantine began. At the beginning of 2020, even before the self-isolation regime was introduced, we were already seeing an active increase in the number of tourists.

Georgia is open to tourists.

At the moment, Georgia is reopening to tourists. Citizens and residents of European countries, as well as the United States, are starting to realize that a vacation here is significantly more affordable than, for example, in Mexico or the Seychelles. You can spend the day enjoying the beautiful nature, strolling along the waterfront, and swimming in the warm sea waters.

Statistics on foreign tourists

• 2015: 5,901,094 people
• 2016: 6,350,825 people
• 2017: 7,554,936 people
• 2018: 8,679,544 people
• 2019: 9,358,000 people

Investments and Bitcoin

As for Bitcoin, I believe it is quite a risky asset. It generates a lot of interest and attracts attention, but its history is full of unexpected surges and sharp declines.Real estate investmentsThey are valued for their stability and predictability. Undoubtedly, in today's conditions, the risk of instability is present.

Although I don't have deep knowledge in the field of cryptocurrencies, I know that the number of bitcoins is limited, which determines their value. For comparison, one can look at the situation in Batumi: there are practically no free plots left for new construction in this city. One of the major businessmen who invested an entire floor in our project noted, "Batumi is developing at such a speed that in ten years it will be quite clear: those who missed the moment are already too late."

Real estate market in Batumi

As for the current state of the real estate market in Batumi, I've noticed that apartment prices in our city continue to rise every year. None of the developers have lowered the prices of their properties, even during the times when the entire country was closed. This point is extremely important.

The second aspect is that in five years, there will be almost no new buildings left in Batumi, as the legislation complicates the process of constructing large projects. To be more specific, the cost of construction may increase on average by five times.

This, in turn, will lead to the need to demolish large nine-story buildings in order to start constructing new fifteen-story ones.The situation is becoming extremely inconvenient for conducting business activities.

In recent years, there have been significant changes in the real estate market of Batumi. Due to the rapid increase in construction work, the number of available land plots for new projects has significantly decreased. Local experts often emphasize that investment opportunities are becoming increasingly limited. It is important to note that in the future, property prices may triple compared to current levels to maintain profitability.

If five years ago someone could say that they missed their chance, now I would extend that period to ten years. I closely monitor all new constructions and can confidently say that there are practically no promising locations left for new projects in Batumi, as all planned projects are set to be completed in the coming years. We are all familiar with this market and know who is getting permits and where construction is taking place.

The development of our construction company

As for the work of our construction company, we are actively expanding our operations. We are now focusing on investments in hotels with apartments, which will be managed by our company.

Real estate in Batumi

Batumi is a city full of diverse opportunities in the real estate sector. Let's take a look at the available options that can be purchased in this wonderful corner.

Apartments in Blue Sky Tower

One option is the apartments in the multifunctional complex Blue Sky Tower, priced at108,260 €This modern building has a well-developed infrastructure, which includes:

• casino
• spa
• gym
• halls for hosting various events

In addition, the complex has both indoor and outdoor pools, and the on-site restaurants offer dishes from both Georgian and European cuisines, as well as kosher treats.

Land plot in Chakvi

If you are looking for land, there is an interesting offer in Batumi. A plot of land with an area of3000 m²It is located in the picturesque area of Chakvi, which is famous for its stunning landscapes. Here you can see fruit trees, particularly orange and mandarin trees, and nearby flows a clear mountain river.

The area is known for its fresh air and beautiful terraces where trees grow. We are ready to provide full assistance in preparing all the necessary documents to ensure that the transaction goes smoothly and quickly.

Apartment in an elite complex

For those planning to buy an apartment, we offer an option in Batumi at a price99,703 €. An apartment with an area of71 m²You can find it in a small elite eight-story complex, which has a limited number of apartments and features a well-maintained green area of over5000 m².

The complex features a well-developed infrastructure suitable for living and recreation, and is located in a secluded picturesque area just a few steps from the sea.

Villa in Kobuleti

For beach lovers, there is a wonderful offer in Kobuleti — a villa with a total area of70 square meters, the cost of which is148,857 €The single-story building is located right by the shore of the crystal-clear sea. The unique design and the furnished sunbathing area with a grill make this property particularly appealing.

Kobuleti is famous for its beaches and convenient access to interesting places like the Petra Fortress and the botanical garden.

Villa in Batumi

Another interesting offer for those who want to buy a villa in the heart of Batumi is available.511,993 €With an area196 m²It includes four rooms and two bathrooms, which makes it suitable for both permanent living and vacationing.

This complex is part of the international network of Wyndham Hotels & Resorts and is presented as an all-inclusive resort under the Wyndham Grand brand, offering unique investment opportunities in a premium business product.

Apartment with a sea view

Don't miss the opportunity to check out the apartment with an area of42 m²located on the fourth floor of the eighteenth floor of the building. Its price is51,423 €...and it offers a stunning view of the sea, which is just 50 meters away, and you can reach the botanical garden on foot in 10 minutes.

The apartment is already equipped with modern climate control systems and energy-efficient ceramic panels, making it particularly attractive for living.

Conclusion

Thus, there are many interesting offers in the real estate market in Batumi that can meet any needs. Here, it's easy to find both land plots and residential properties, perfectly suited for vacation or permanent living.

New kindergarten and swimming pool

A new kindergarten has been completed in our area, and nearby, a covered swimming pool is being built. Just a five-minute drive away, there is a water park that will be a great place for family leisure.

Apartment in Batumi

An apartment in Batumi is for sale at the price of45,108 €its area is38 m²It includes two rooms and one bathroom. This accommodation is located in one of the rapidly developing areas of the city, just a kilometer from the seaside.

The local mayor's office is located approximately three kilometers from the apartment. Various public transport routes can be accessed along Petru Bagrationi and Agmashenebeli streets. Batumi Port is four kilometers away, and the bus station and cable car are at a similar distance.

Apartment in Tbilisi

Another property is an apartment in Tbilisi, which is priced at153,368 €and the total area reaches172 m²It includes three rooms and two bathrooms. This property is located in a picturesque and environmentally friendly area, just a few minutes from the city's main streets.

The project is nearing completion, with plans for the construction of an outdoor pool, large retail outlets, kindergartens, and educational institutions, making this location attractive for families. The apartment is situated on a hill, providing comfort and privacy.

New apartment in Batumi

A new apartment in Batumi is also available for sale.66,422 €, covering an area48 square metersThis "Euro two-room apartment" is located in the residential complex "Green Cape," just 150 meters from the sea, in the Green Cape area.

Within a ten-minute walk, you can reach the Batumi Botanical Garden. The apartment offers a picturesque view of the mountains and the sea. The interior finishing work has been done to a high standard, and there is a equipped bathroom, but the kitchen and bedroom are unfurnished.

• Area of the hallway:7.59 m²
• Bathroom area:3.65 m²
• The area of the kitchen-living room:18.36 m²

A serviced apartment for investment

There is also an interesting offer - an aparthotel, where the price of the apartment is61,648 €for31 m²with one room and a bathroom. This modern complex offers a wide range of hotel services and is distinguished by high construction quality and stylish architecture.

This is a great opportunity for investment in rental with the potential for returns.60%Arrived at the construction stage. At the same time, there are no legal restrictions during the resale process until the certificate of ownership is obtained.

Additional suggestions

• Studio for31,576 €with an area28 m²and one bedroom.
• Spacious apartment in Batumi for64,956 €with an area53 square meterslocated in the "Guru Residence 2" complex on Angisa Street.
• Panoramic apartment for67,662 €with an area45 square meterslocated in a new premium residential complex, just a100 metersfrom the coast.
• Studio in Batumi for65,858 €area37 square meters.
• A modern spacious studio in a promising complex near the city center with well-developed infrastructure.

Description of the apartment on Pirosmani Street

Located no more than 300 meters from the sea, with a stunning view of Batumi and the surrounding landscapes, is an apartment at 17 Pirosmani Street. This offer from BD Group is valued at 159,369 euros and includes a living space of 65 square meters with one bedroom.

There is also a unique opportunity to obtain a residence permit when purchasing this property. Thanks to the option of virtual viewing and the organization of remote transactions, the process of acquiring real estate becomes more convenient, and payments can be made in rubles.

This apartment is perfect for subsequent rental and is part of the Dreamland Oasis residential complex. It offers a one-bedroom apartment in building 13, with completion scheduled for spring-summer 2025. The building has 19 floors and is equipped with three Japanese elevators, as well as modern energy-efficient windows. The balconies are also designed for the maximum comfort of the residents.

The living space is offered in its current condition.“turnkey”Fully furnished and equipped with all necessary appliances, featuring high-quality and modern renovations. The wonderful view of the sea and the large swimming pool provide an unforgettable addition to this property.

The second sentence from Dreamland Oasis

The second offer from Dreamland Oasis includes an apartment priced at 145,884 euros, with an area of 70 square meters, featuring three rooms and one bathroom. There is also an option to obtain a visa upon purchase. This construction project is located in building 12 and is scheduled for completion at the end of 2026.

The building has 19 floors and is equipped with three elevators. It also includes apartments with highly efficient double-glazed windows and greenery on the balconies, and is offered in a ready-to-move-in condition.“turnkey”.

Two-room apartment in Tbilisi

In Tbilisi, you can find a two-room apartment with an area of 50 square meters priced at 86,608 euros on Nutsubidze Street. This new housing with modern design and renovation offers:

• built-in kitchen modules and storage cabinets;
• central heating;
• modern household appliances.

The appeal of the Saburtalo area is linked to its proximity to popular shops and shopping centers, which can be reached on foot in just five minutes.

House in Batumi from BD Group

BD Group also has a house in Batumi priced at 328,388 euros. The total area of the building is 156 square meters and includes three rooms. It is located in a quiet Italian courtyard in the city center, which adds to the appeal of this property.

The building has three floors, with the second and third floors measuring 83 square meters and 73 square meters, respectively.

The second floor includes:

• spacious bathroom finished with Italian tiles;
• a separate kitchen;
• dining area;
• two bedrooms.

The third floor is currently in the final stages of finishing work.

Studio in Batumi

Alongside this, a studio apartment of 28 square meters is available for sale in Batumi for the price of 37,891 euros, which is currently under construction.“white frame”This apartment is conveniently located and has a well-thought-out layout, allowing for various interior design ideas to be implemented.

The Guru Status complex, where the studio is located, is presented as a modern residential project with a stylish architectural design, featuring a pool in the courtyard and a rooftop terrace. The building is just 150 meters from the sea, offering ideal conditions for comfortable living.

Unique hotel in Georgia

Among the many hotels in Georgia, a cozy family establishment in Gonio, located in Batumi, stands out. This hotel is surrounded by an incredible orange garden and covers an area of 1850 square meters. Guests are offered not only comfortable rooms but also the opportunity to enjoy authentic cuisine at the local restaurant and café.

The convenient location of the hotel, just five minutes from the sea, allows vacationers to make the most of all the magic of the coastal area while providing tranquility thanks to the surrounding greenery and picturesque landscapes. Gonio is a peaceful corner, just twenty minutes from Batumi, making it perfect for a family holiday.

Investing in apartments

There is also an interesting new offer from Atlas Property — the opportunity to purchase an apartment in Batumi with an area of 28 square meters. This apartment is equipped with all the necessary amenities and is offered with an interest-free installment plan for up to 30 months, which increases the accessibility of the purchase for investors.

• Stable income:Investing in this complex provides a stable rental income and guarantees a profitability level of around 12%.
• Modern standards:This is one of the few residential complexes in Georgia that was built according to the master plan and includes a variety of international hotel brands and residential residences.

Potential risks for investors

Some analysts express the opinion that investors may find it uncomfortable to invest their funds in Batumi real estate, hinting at potential risks of missed opportunities. In the old town, there is a significant excess of demand over supply for residential properties, and while the cost per square meter used to be around $1,000, it now ranges from $2,000 to $3,500.

This circumstance highlights the importance of paying attention to the new areas of Batumi, where active construction of modern residential high-rise complexes is ongoing.

Rise in real estate prices

With the rise in real estate prices, the question arises: are we at risk of encountering a "bubble" that could burst at some point? It's quite difficult to predict the end of the price increase period, and any guarantees given by realtors may turn out to be a bit of a gamble.

Even if prices have become less dynamic in their growth, a sharp decline is unlikely, as high construction costs remain the main reason for price stability. It is possible that some owners may want to urgently sell their properties at lower prices, but profitable offers from construction companies are often not anticipated.

Prestigious area of Batumi

The specified complex is located in one of the prestigious areas of Batumi, near the French hypermarket Carrefour and a modern stadium that meets UEFA standards. The surroundings feature not only sea views but also central boulevards and fountains, making these places ideal for living and relaxation.

The experience of other countries, such as Bulgaria, demonstrates how the real estate market can change: from low prices to a sharp surge, which is sometimes followed by a decline in demand. Nevertheless, in Georgia, housing prices remain affordable, making this market attractive for both active tourists and investors looking to enhance their financial standing.

Recently, there has been a growing interest in Georgia among foreign citizens, especially among residents of post-Soviet countries. This is particularly true for people born in the 1980s, who previously did not have the opportunity to visit this country. Information about Georgia spreads like word of mouth: one traveler returns with positive impressions, and soon others follow. People are seeking strong experiences that are almost impossible to obtain for comparable money in Western countries. For example, in Georgia, you can take a taxi across the entire city for just one euro, while in European countries, a ride can cost up to 20 euros. With that amount of money in Georgia, you can spend an entire day enjoying walks and excursions.

Real estate market and its risks

You noted that the real estate market in Georgia is geared towards tourists. However, the events of 2020 demonstrated that such a strategy can be risky. How can one make forecasts in the area of tourist investments when borders are closed and discussing any guarantees becomes difficult?

Challenges and achievements during the pandemic

The past year has been a serious challenge not only for the tourism sector but also for many other industries, including the economy of Georgia. However, I don't think the standard of living for citizens has noticeably declined. We managed to maintain many of our advantages and overcame the pandemic with fewer losses than, for example, Germany. Georgia is a small country, and it turned out to be easier for us to cope with the restrictions. Most businesses continued their operations, and domestic demand supported the tourism industry. For instance, our hotels and apartments showed good results, although this required lowering prices.

Changes in consumer behavior

During the pandemic, we started receiving requests from foreign clients who were making purchases online — this practice was not common before.On average, we sold 40-50 apartments each month.throughout this challenging time.

Prospects for opening borders

If the borders open by summer, we are counting on optimistic changes, and investors will be able to hope for demand. However, if that doesn't happen, we will have to unite and jointly seek ways to adapt to the new conditions. We will find ourselves in a situation of a global crisis, from which no one is immune. Nevertheless, the crisis cannot last forever. I want to emphasize thatThe profitability of our real estate largely depends on the flow of tourists.And to achieve successful results, we have all the necessary resources. Of course, our contracts account for risks. But, like millions of other people, we hope for positive changes.

Goals of investing in real estate

So for the project you are currently building, you continue to confidently assert a profitability of 20% and an average payback period of about five years?

We always ask the client about their purpose for purchasing apartments in our project. If their goal is passive income, we recommend paying attention to the apartments in Block A — these are hotel apartments built according to the standards of the Holiday Inn chain and managed by them.According to our financial calculations, such an investment can yield a return of up to 20% per year.

Conclusion

In conclusion, I want to emphasize that Georgia undoubtedly offers unique opportunities for real estate investment due to its streamlined bureaucracy, low taxes, and affordable prices. Transactions can be completed swiftly, making the country particularly attractive to foreign investors and those seeking new horizons for expanding their activities. I am personally impressed by how easy it is to register a business and own property without unnecessary obstacles.

The appeal of Batumi

Batumi, with its blend of modernity and traditional charm, creates the perfect environment for those who want not just to buy an apartment, but to become part of a unique culture. Here, in this picturesque corner, you can enjoy views of the sea every morning and spend evenings in cozy local cafes. This is a place where not only luxurious new buildings are being developed, but also streets with historic houses, offering a chance to touch the rich heritage of Georgia.

Risks and opportunities

At the same time, I understand that behind attractive numbers, there may be hidden risks.An investment is always a bet on the future.And no matter how much I am convinced of the rapid growth of investments, a sensible investor cannot ignore the warnings. Nevertheless, in Georgia, there is no doubt that the surrounding nature and the warmth of the local culture provide a wealth of emotions, which can sometimes be worth much more than even the highest profits.

Invitation to an open heart

Therefore, if you are considering Georgia as a destination for investment or a new place to live, I encourage you to make this decision thoughtfully, but with an open heart. The area of opportunities here is vast, and perhaps in Georgia, you will find what you have long dreamed of. I invite you to discover all the beauty and wonder of this country and to see that it can offer you not only investment prospects but also deep emotional experiences.