Due to a growing flow of tourists, who are willing to purchase various properties, Georgia is truly a perfect place for acquiring quality properties at reasonable prices with high revenues for foreign investors, especially Arabs. The investment in Georgia real estate is thriving, making it an attractive market for property seekers.
If you’re considering an investment in Georgia real estate but don’t know where to start, this report will answer all your questions: If you’re considering an investment in Georgia real estate but don’t know where to start, this report will answer all your questions:
Real Estate in Georgia: Affordable Prices and Impressive Returns!
Geologically located near the Caucasus Mountain range, Georgia is a tourist-friendly and vibrant country in Eastern Europe. The country boasts of marvelous mountains, rivers, and lakes which increase the number of tourist visitors annually, making it a good place for investors and investment in Georgia real estate.
Moreover, Georgia, which was part of the Soviet Union, is witnessing gradual economic development as well as improvement in infrastructure and construction of cities. This has led to a high demand for both commercial and residential properties within Georgia, creating opportunities for investment in Georgia real estate.
Social and economic construction activities have been going on in Georgia for several years and are most apparent in cities. Foreign buyers purchased 40,000 apartments in Georgia in 2023 only, according to Business Insider, further outlining that this number will only rise in 2024, more so given the constant immigration of Russian citizens seeking investment in Georgia real estate.
Most of the FDI is mainly directed to the service sectors targeting industries like the capital city Tbilisi and the Black Sea tourist city Batumi. Evaluating the indices of consumption on tourism, Georgia has noticed a steady growth of tourist flow and identified the annual growth of tourists constituting 15-20%, ensuring that rental income from properties will remain high, thus supporting further investment in Georgia real estate.
Key Factors Making Georgia Real Estate Attractive to Investors:
Affordable Prices and Quality:
You can buy property in newly constructed buildings built to international standards for as low as $30,000, making the investment in Georgia real estate appealing.
Easy Registration:
It is easy to transfer property to your name, and it takes about twenty minutes at the “House of Justice,” simplifying the process of investment in Georgia real estate.
No Additional Taxes:
This is a massive benefit since this type of investment in Georgia real estate does not attract taxation on the acquisition and ownership of the properties. If they opt to let out their property, they are expected to pay an annual computed tax of 5% on rental income.
What Does the Georgian Real Estate Index Say About Selling Prices?
These findings mean that the general index for the prices of residential real estate rose by an average of 10%. 7% noted above while bearing in mind that competition is a function of population growth, annual population increase entries show that standard fare inflation was 4%. 5% in Q2 of the current financial year, and only 3. 4% in Q1, according to the National Statistics Office of Georgia – Geostat.
Apartment prices have increased by 10% in 2023 from the previous year’s price level. 9% whereas, detached house prices rose by 10% y-o-y.
In Tbilisi, the capital, residential real estate prices vary widely by area and property type, which is essential for anyone considering an investment in Georgia real estate:
- Mtatsminda: 20.6%
- Vake: 14.3%
- Nadzaladevi: 6.9%
- Saburtalo: 4.8%
- Samgori: 3.2%
- Isani: 0.2%
However, Mtatsminda still retains the title of Tbilisi’s most costly neighborhood with an average price of GEL 4,931 or USD 1,900 per square meter based on the central bank exchange rate.
Tourism also affects the issue of high charges since platforms such as Airbnb and Booking.com allow property owners to earn money by posting their property for sale in Georgia. The nature of this market entails more people getting involved due to increased tourism, hence increased demand and therefore high property demand and prices, boosting the prospects for investment in Georgia real estate.
Long-Term Strategy
Every real estate investment in Georgia always needs a long-term investment plan. The main return that one gets out of this asset is rental income that is predictable and steady in the long run. For instance, a house valued at $35,000 can be bought, put up for rent, and generate a stream of income depending on its market value, which may take 10-15 years to be paid back fully.
Benefits of Buying Property in Georgia
Several reasons make investment in Georgia real estate appealing, especially in the current climate:
No Property Sales Tax:
No tax on property sales is allowed; no quick flipping is possible, and no bank gambling is allowed either, promoting a stable environment for investment in Georgia real estate.
Sacred Private Ownership:
Private property is recognized and safeguarded by law, resulting in no capital gains tax, no taxes on wealth, or inheritance taxes. Another fiscal policy regulation provides for the deferment of profit tax for a maximum period of ten years at the firm.
Affordable Living Costs:
Overall, the cost of living in Georgia is much cheaper in comparison to European countries, Russia, or the Gulf countries, enhancing the attractiveness of investment in Georgia real estate.
Popular Investment Option:
Many resort properties are bought, which may be operated as well by the owner or third-party operators.
It is established that foreigners tend to buy apartments in Batumi and Tbilisi, where most of them are tourist resorts or temporary housing companies, fostering investment in Georgia real estate.
Another advantage is that purchasing property worth $100,000 or more grants the buyer and their family short-term residence permits, usually issued for one year and renewable annually for up to 12 years (Note: Centrally, land being used for agriculture does not warrant issuance of residence permits).
Also, acquiring property worth $300,000 or more grants a five-year investor residence permit to the foreign buyer and his/her family, supporting long-term investment in Georgia real estate.
Who Can Buy Property in Georgia?
In Georgia, it is legal for foreigners to be property owners, though there are some restrictions. For instance, the acquisition of agricultural lands as well as owning land through any legal entity is prohibited for foreigners, guiding the investment in Georgia real estate.
How to Buy Property in Georgia
There is no doubt Georgia offers one of the simplest procedures for purchasing property as it only requires a copy of your passport. According to the property ownership contract, the seller gives up to two weeks for payment to be made, after which the buyer then transfers money through a bank.
If the actual payment is in foreign currency, then the payment contract can be in USD. But if transitioning from a Georgian account, then the contract should be in Georgian because the worth of Georgian Lari keeps changing.
If full payment is not made at the time of contract implementation, the balance amount can be paid every month to overcome banking charges. Another effective method is to pay in tranches within short intervals, say three or six months; however, all payments should be made before the due dates.
After full payment, you and the seller’s attorney will go to the Ministry of Justice to register yourself as the new owner. The fee charged for property registration in Georgia costs $20 -$80 depending on the time one is willing to wait. Online, one can trace the records of a property to ensure it belongs to a certain individual.
There are no taxes for villas regardless of their prices in Georgia, but if one is renting the villas to anyone, there is a 5% tax on the rent. Otherwise, a 20% CGT is charged on the gains accruing from sales made within two years from the date of purchase.
York Towers: The Real Estate Developer Regarded as a Market Leader
York Towers is a well-known real estate development organization that was started in Georgia in the year 2016. As recognized in one of the key projects, York Towers can be regarded as a major breakthrough in the housing, hotel, and cinema industries in Georgia. Seven years of operation have seen York Towers produce over twenty quality residential buildings, and it currently operates in five countries, three of which are continents.
At York Towers, it is our policy to offer our clients our services and products that meet the highest standard as well as affordability to provide health and safety to both clients and their families.
