According to the laws of Georgia, any person can obtain a one-year residence by purchasing a property worth more than 100,000 dollars, and if the applicant does not have any legal problems during his stay in Georgia, he can extend his stay
The real estate markets in Tbilisi and Batumi, two major cities in Georgia, have experienced significant growth and attracted both local and international investors in recent years. Tbilisi, the capital and largest city of Georgia, has seen a surge in real estate development and investment. Residential Properties: The demand for residential properties in Tbilisi has been on the rise, driven by a growing population, urbanization, and increasing disposable incomes. Apartments, particularly in central areas and new residential complexes, are popular options. Commercial Properties: Tbilisi also offers opportunities for commercial real estate investment, including Office spaces, retail properties, and hospitality projects. The city's business-friendly environment and growing tourism industry contribute to the demand for commercial properties.
In 2021, the Batumi market is also highly dependent on apartments purchased by foreigners in Georgia. We are witnessing a sharp decline in sales in the Batumi market, and the situation in this market will not improve significantly until the tourism industry takes a positive step. However, in 2021, the real estate market in Batumi has decreased by 7.4 percent and in Kutaisi city by 16.5 percent, and as a result, real estate in Tbilisi has dominated the Georgian real estate market with a 39.3 percent share in total sales.
The total number of transactions of buying and selling apartments in Tbilisi has increased by 26% compared to last year. Thus, in August 2022, a total of 3,689 transactions were registered. Also, the market volume has increased to 190 million dollars, which is a 44% increase compared to last year. According to the decisions taken by the Georgian government in the last few years, it has attracted many foreign investors to the pristine real estate market of this country (especially in the cities of Tbilisi and Batumi). Since real estate prices are calculated in dollars, it is considered a very desirable investment, in both small and large types.
Batumi, a coastal city on the Black Sea, has emerged as a popular tourist destination and a growing real estate market. Tourism and Resort Developments: Batumi's picturesque location, pleasant climate, and attractions have led to a boom in tourism. This, in turn, has driven demand for vacation homes, hotels, and resort-style developments along the coastline. High Rental Yields: Batumi has been known to offer relatively high rental yields compared to other markets, attracting investors seeking income-generating properties. International Buyers: Batumi has attracted a significant number of international buyers, particularly from Russia, Turkey, and other neighboring countries. These buyers often invest in apartments and holiday homes.
According to the laws of Georgia, any person can obtain a one-year residence by purchasing a property worth more than 100,000 dollars, and if the applicant does not have any legal problems during his stay in Georgia, he can extend his stay. Then, after 5 years of residence extension, the owner becomes a citizen of Georgia, who, in addition to receiving a Georgian passport, also gets the right to vote in this country.
The government of Georgia seeks to attract foreign capital in different regions of the country. That's why they made the regulations as easy as possible for investing in Georgia. One of the most important actions of the government in this field is to exempt property buyers from paying any taxes. In this process, the seller is responsible for paying all taxes. In practice, this law helps to increase the desire to buy a house in Georgia.
Government Initiatives: The Georgian government has implemented various reforms and initiatives to attract foreign investment, including favorable tax policies and a simplified registration process for property ownership. Economic Growth: Georgia's stable economic growth, improving business climate, and favorable investment environment have contributed to the growth of the real estate markets in Tbilisi and Batumi. Infrastructure Development: Ongoing infrastructure projects, such as transportation improvements and the development of tourism-related infrastructure, have enhanced the attractiveness of both cities for real estate investment. Compared to some other international markets, real estate prices in Tbilisi and Batumi have remained relatively affordable, making them attractive for investors seeking favorable returns on investment.