Why is Real Estate so Cheap in Georgia?

Why is Real Estate so Cheap in Georgia?

Many foreign investors are drawn to Georgia because of the low prices of real estate, which has seen huge development over the past decade. But what is it that makes properties in cities such as Tbilisi and Batumi so affordable?

Real Estate Price Trends

Real estate prices in the 2nd quarter of 2022 (March-May) have gone up in Tbilisi by 3.33% but with an average lowest price per square meter of $855, it is still a bargain for most buyers. Batumi recorded a price increase of 3.7% leading to an average lowest price per square meter of $775. More expensive places in Georgia are Bakuriani ($1080 per sqm), Gudauri ($1420 per sqm), and Kvariati ($1458 per sqm). The lowest prices can be found in places such as Kutaisi ($528), Rustavi ($499), and Zugdidi ($618). Overall, there is a variety of low-priced real estate that is widely available spread out over the entire territory of Georgia. The most comfortable marketplace for new and off-plan real estate in Georgia is Korter, where you can find the most up-to-date pricing and additional information about all available projects.

Wide Variety of Investment Options

While in most countries real estate development centers around the capital or the touristic areas, in Georgia there is a wide range of investment opportunities. The most popular are apartment buildings in the capital Tbilisi and touristic investments in the Black Sea coast town of Batumi. However, there are also attractive objects available in the Borjomi Gorge, home to the famous Borjomi water, or in Kakhketi, the wine and brandy producing region in the Eastern part of Georgia. Furthermore, there are the famous ski resorts of Bakurani and Gudauri, which offer some world’s best ski slopes. With all these options in such a small country, prices remain attractive.

Affordable Property Prices in the Capital

In most capital cities around the globe property prices have skyrocketed, even in poorer countries. Tbilisi is a pleasant exception where it is still possible to buy a square meter of property for less than $1.000 in the very heart of the city. When considering the suburbs or outskirts it is even possible to find prices as low as $500 per square meter. This makes it a place where you can live large on a small budget. Another factor that plays a role is that roughly 25% of the current housing stock in Tbilisi was built after the collapse of the Soviet Union. This means that there is a huge demand for new housing, leading to fierce competition. Also Read – Four Reasons to Buy Luxury Homes

Ease of Doing Business

On a global scale, Georgia is one of the countries where it is easiest to do business. A company or a bank account can be set up within 10 minutes and with online banking readily available it is easy to pay for all your financial obligations. This also applies to the real estate sector, making mortgages and installment plans easily available while everything can be arranged in a short time span. Buying and owning a property as a foreigner is also surprisingly easy and sometimes it is possible to get an installment plan without proof of income. Furthermore, there aren’t any additional fees such as stamp duty or high property taxes, which also reduce your monthly costs.

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