Georgia, with its stunningly developing resorts, is a popular destination for foreign investment. Georgian apartments, houses, office spaces, and commercial premises, as well as hotels, attract buyers due to their high passive income and the opportunity for quick Georgia real estate sale at prices close to market rates.
The Situation in the market
Embarking on real estate investment presents a promising avenue for prospective investors. Within this diverse country, numerous pathways are available, enabling every buyer to discover an ideal property tailored to their unique objectives and financial considerations.
- Hotel Sector. The tourism industry in Georgia is booming. Future investors need to understand that choosing a property in a prime location and creating a well-thought-out business plan are essential for high profitability. Investing in the hotel business may require a significant amount of time and effort.
- Office Spaces. Startups and international company branches are mostly located in Tbilisi. Therefore, it’s best to buy real estate that companies will use in the capital. Even properties on the outskirts of the city can yield a stable high income from renting.
- Commercial Segment. Small and medium-sized businesses in the country demonstrate strong economic performance. Rental rates are gradually increasing, making real estate investments less risky. However, property owners are responsible for the property, including ongoing maintenance, utility payments, fire safety, and more. Many property owners enter rental agreements through local service companies that handle these complexities.
As a result, the financial burden increases, and the return on investment term lengthens. To ensure that real estate is a profitable investment, it’s essential to choose the right property. Commercial space in a good building and a populated area with developed infrastructure will quickly attract tenants.
Investing money in new buildings
The most advantageous investment opportunity in Georgia, a sought-after tourist hotspot, lies in acquiring apartments from reputable developers. Every year, numerous brand-new real estate units are offered for rent across the capital and major cities such as Batumi, Kutaisi, and Rustavi. The cost per square meter in an under-construction property is typically 20-30% lower than its post-completion price, making investment during the construction phase a highly cost-effective choice.
If the goal of real estate investment is rapid profitability, it’s best to purchase housing in elite complexes in Tbilisi, near seaside or mountain resorts. Rent from such properties can yield up to ten thousand dollars per season. Long-term rentals of apartments can bring in up to $800 per month. When factoring in the costs of contract processing and interior decoration, the payback period can be up to ten years. Foreigners who do not intend to reside in Georgia may not even have to visit the country to find tenants.
Investing money in the secondary market
In the dynamic secondary housing market of Georgia, your options are as diverse as your investment goals. Whether you’re seeking a cozy studio apartment or a spacious 500-square-meter residence, there’s something for everyone.
For those eyeing the rental market, apartments in the 40 to 60 square meter range are the go-to choice. But for a truly unique investment opportunity, consider the enchanting Old Town of Tbilisi. Here, historic buildings whisper tales of medieval architecture, making properties in this area highly sought after.
Investing in apartments in Old Tbilisi not only offers a glimpse into the past but also promises a lucrative stream of rental income. Don’t miss out on this historical gem in the heart of Georgia!