Buying real estate in Georgia: why is it worth considering?

Why should one consider Georgia for real estate investments?

This question concerns many potential investors. First, it is necessary to determine which type of property you are interested in — an apartment, a house, or a condominium. Then, you should discuss the terms of the deal with the seller, including possible options for installment payments and mortgages. Once both parties reach an agreement, all that is left is to sign the deal, make the payment, and finally, the buyer will become the owner of the newly acquired property.

Rationales for choosing Georgia for Russians

The choice of Georgia for real estate purchases by Russians is influenced by a number of factors. This amazing country is known for its pleasant climate and magnificent natural landscapes — here you can find both the sea and the mountains. The cost of living in Georgia is significantly lower than in most European countries, and the tax policy for businesses remains quite lenient, making the country an attractive place for doing business.

• Favorable climate
• Low cost of living
• Loyal taxes for business
• The hospitality of the local residents

Moreover, cooperation with local authorities takes place without unnecessary bureaucratic hurdles, and the residents of the country are known for their warm and friendly attitude. Many of them speak Russian and English, which significantly facilitates the communication process.

Advantages for Russian citizens

Despite the complicated international relations and sometimes negative attitudes towards Russians, most Georgians remain friendly. Russian citizens do not need a visa to stay in Georgia for up to a year. To extend their temporary stay in the country, it is enough to leave for a short period, after which they can return, and the duration of their stay will start counting anew.

Accessibility of getting to Georgia

Currently, there are no direct flights between Russia and Georgia. However, it is possible to reach this country with layovers in cities such as Minsk, Yerevan, or Istanbul. It is also worth noting that a vaccination certificate for the "Sputnik V" vaccine is required for trips to Georgia, with the exception of the single-component vaccine. This is a significant advantage for Russians planning to visit Georgia.

Either proof of vaccination or a PCR test result will be required at border crossings. For the time being, restrictions related to COVID-19 are gradually being relaxed; by April 2022, only the requirement to wear masks in enclosed areas remains.

Real estate prices in Georgia

Another important issue is the real estate prices in Georgia. For example, the cost of a studio apartment measuring 30-35 m² in a modern residential complex in Batumi, located on the first or second line from the sea, ranges from 35,000 to 50,000 US dollars. In comparison, a similar apartment in the Greater Sochi area would cost no less than 8-9 million rubles.

Experts in the Georgian real estate market note that economy-class properties are being sold quickly. Although prices are currently stable, the conditions for an increase are already starting to emerge.

The first step in choosing real estate

To start the process of choosing real estate, you need to decide: what kind of real estate will be preferable - an apartment, a house or an apartment? The most popular for purchase in Georgia are apartments and apartments, both on the primary and secondary markets. For those who plan to live permanently, apartments in multi-storey buildings with gas heating are of interest.

Apartments are most often purchased for temporary vacations or for generating rental income. The maintenance of such properties involves a monthly fee to the management company, which averages around $0.5 to $1.1 per square meter.

Conclusion

Thus, Georgia offers numerous opportunities for real estate investment and has interesting prospects for future price growth in the market. Considering all the mentioned advantages, this southern country appears to be an attractive option for those looking for not only comfortable housing but also profitable investments for their financial resources.

Overview of the real estate rental market

From June to September, the rent for a one-bedroom studio in a new residential complex, measuring 30-35 square meters and located close to the sea, can cost between 100 to 120 dollars per day. It is important to note that owners who earn from rentals are required to payincome taxwhich is 5%.

Choice of developer

When looking for an apartment in a new building, it's important to be careful in choosing the developer. Pay close attention to the recommendations of a qualified realtor who is well-informed about the current market situation.

Although cases of unfinished construction and double sales are quite rare, new buildings sometimes delay their completion until5-6 months.In some cases, tenants may move into apartments even if the construction is not yet complete.

Purchase on the secondary market

When buying an apartment on the secondary market, it's important to go through standard checks for verification.legal purity of the transactionMake sure that the property:

• Unencumbered by liens,
• Not under arrest,
• There are no parties with the right to challenge the transaction.

It is common for these checks to be carried out by a realtor, but many also choose to use additional services.lawyer. In Georgia, there are rules that state that realtor costs are usually borne by the seller. Exceptions are when a buyer wants to purchase multiple properties or if it is a high-budget purchase.

Restrictions for foreigners

When choosing a house in Georgia, keep in mind that foreigners are prohibited from acquiring land plots.agricultural purposeThis is probably the only significant restriction for non-residents. However, in some situations, it is possible to address this issue by changing the type of permitted land use.

However, it should be noted that this will require additional time – usually about2-3 months.

Discussion of the terms of the deal

The next step is to discuss the terms of the deal with the seller. Special attention should be paid to the payment process. Typically, when buying an apartment in a new building, the down payment is about30%of the total cost, with the remainder to be paid in stages.

Many developers provideinterest-free installment planUntil the completion of construction work or even for the next year and beyond. Such offers can be quite attractive to potential buyers. However, obtaining a mortgage for Russians in Georgia is becoming an increasingly complicated process.

Thus, future buyers should be patient and carefully study all aspects related to the acquisition of real estate in this picturesque country.

After the start of the military conflict between Russia and Ukraine, as well as the introduction of various economic sanctions, a number of banks in Georgia temporarily suspended the opening of new accounts and mortgage loans for citizens of the Russian Federation. However, as of the end of March - beginning of April 2022, there are still opportunities for those who want to open an account and obtain a mortgage at some financial institutions in Georgia. The processing of mortgage applications may take significantly longer due to the increased volume of requests.

Simplifying the real estate purchasing process

Thus, the process of buying real estate has become much simpler. The buyer is only required to provide a passport, the amount specified in the contract, and pay a small state duty. When purchasing an apartment on the secondary market, the procedure remains the same, but it is not necessary to conclude a preliminary agreement.

Calculations between the parties

At the fourth stage, the calculation between the seller and the buyer takes place. Recently, several Russian banks, such as Sovcombank, Tinkoff, and Alfa-Bank, were able to make transfers from personal accounts to the accounts of legal entities, including developers in Georgia. However, this option has now become less accessible or has come with additional difficulties due to the imposed sanctions. Nevertheless, this does not stop buyers, and they continue to resort to such methods.

Alternative payment methods

The use of cryptocurrency for payments is gaining more and more popularity. For example, in Russia, you can buy USDT and exchange it for dollars in Tbilisi, paying a small commission. Some developers have started accepting payments in cryptocurrency with a commission ranging from 2% to 4% for each transaction, as well as in rubles, but at higher rates. A large portion of the amount can be paid in cash, but it's important to remember the limit of $10,000 per individual.

Registration of property rights

The fifth stage involves formalizing property rights. All data regarding the emergence of rights, including preliminary ones, is recorded in an electronic register. To ensure that the apartment has officially transferred to the buyer's ownership, one can register on a specialized website. The process of obtaining paper documents is not provided. Property owners in Georgia, both citizens and foreigners, are required to pay an annual property tax, which ranges from 0.05% to 1% of the value of their property.

Tax rate

The tax rate depends on the location of the property and the family's income level.

Prospects of real estate in Georgia

To summarize, currently real estate prices in Georgia remain quite attractive and affordable in terms of investment. The costs associated with the process of buying a home, in addition to the main payment, are minimal. Registration of the transaction is characterized by its simplicity. All these factors make Georgia, known for its delicious national dishes and famous wines, an attractive place for both relocation and real estate investment.

Conditions for obtaining a residence permit

It is important to note that in the case of migration, the cost of the purchased property must exceed $100,000 in order to obtain residency.

Risks and challenges

Negative aspects that may influence the decision to purchase real estate include difficulties that arise when settling accounts with the seller. There are also risks associated with the unstable geopolitical situation and the current economic conditions in Russia.

Conclusion

Georgia is an amazing country that offers many advantages for those who want to invest in real estate or simply move to its territory. Attractive climate, picturesque landscapes, affordable housing prices and friendly locals all create unique conditions for living and vacationing. I strongly believe that the first thing you should pay attention to is the right choice of real estate. Apartments, houses or apartments - everyone should choose what best suits their life plans and financial possibilities.

It's important to remember that the process of buying real estate in Georgia consists of several stages, including:

• object selection;
• discussion of the terms of the deal with the seller;
• acquisition of ownership rights.

Negotiating the terms of the transaction with the seller, including possible installments and mortgages, is a key step that can make a big difference in your future financial obligations. I recommend thoroughly researching the market, talking to professional realtors, and don't be afraid to ask questions.

Why should you choose Georgia?

Georgia is open to Russians — it's essentially a land of opportunities.The ease with which one can stay in her territoryThe absence of visa barriers and existing vaccination agreements make it particularly attractive in the light of modern conditions. Russian-speaking locals and their friendly attitude create an atmosphere of comfort and security, which is important for foreign investors.

Finally, I want to note that despite the conditions related to the pandemic and international politics, Georgia remains a stable place for real estate investments.Housing prices have not yet responded to the growing demand.However, this trend is clearly gaining momentum. So, if you are looking for comfort, reasonable finances, and mutual support, Georgia is the perfect choice for you.