Real Estate Prices in Georgia | Comprehensive Guide
Georgia has rapidly become one of the most important real estate markets in Europe over the past years. However, property ..
Georgia has rapidly become one of the most important real estate markets in Europe over the past years. However, property prices in Georgia are the lowest among any other capital city in Europe. Despite the increasing property prices in Georgia, you can still buy a fully furnished one-bedroom apartment in a central and prime location in Tbilisi, the capital of Georgia, for less than $90,000. If the property is located in some of the city’s suburbs, the price would be much lower.
In this article, we will explore the most important criteria for those considering real estate investment in Georgia, starting from the location of property purchase in Georgia (Tbilisi/Batumi) to property prices in Georgia, real estate development, rental opportunities, as well as the most common concerns and legal matters that one might face when deciding to invest in real estate in Georgia.
5 Facts about the Georgian Real Estate Market
- Georgia is currently witnessing an unprecedented level of infrastructure development, with an average real estate GDP growth rate of over 4.5% annually between 2011 and 2022.
- There has been a shift in the real estate market growth in Tbilisi, with slow development from 2016 to early 2022, followed by rapid development from February 2022 to the end of 2023.
- In 2023, rental yields for long-term leases (over 6 months) range from 8-12%, while short-term rentals have yields of 15-20% based on occupancy rates.
- Property prices in Georgia vary, with the optimal price per square meter in Tbilisi ranging from $2,000 to $2,500 in the Old City (Metekhi) area, $1,800 to $2,500 in prestigious neighborhoods like Vake, $1,600 to $2,000 in modern suburbs within the city like Saburtalo, and $1,000 to $1,500 in outer suburbs. These averages encompass all types and standards of properties and residential units.
- Foreigners can purchase properties in Georgia, except for agricultural land, under the same entitlements and laws enjoyed by Georgian citizens.
Advantages of Real Estate Investment in Georgia
Georgia boasts a wonderful and diverse climate, earning it the title of the country of four seasons. It is also renowned for its fantastic traditional cuisine, distinctive architectural heritage, and stunning mountainous regions in the Caucasus. Additionally, Georgia offers a relatively low cost of living and has gained increasing popularity in the tourism sector. Moreover, Georgia is currently experiencing an unprecedented level of infrastructure development.
For those looking to purchase properties for short-term rentals, the tourism industry has rebounded after the COVID-19 period and is on the rise again. Property prices in Georgia for short-term rentals are extremely low, allowing foreigners to afford rental costs without hassle. Both Tbilisi and Batumi saw increases in long-term rentals in 2023, not only from residents migrating from rural areas to cities but also from expatriates and foreigners seeking affordable living costs.
Property prices in Georgia are among the lowest in European countries, and installment plans without interest are available. Additionally, the country offers an attractive landscape. Property owners can obtain a free round-trip ticket and enjoy significant discounts when owning property in Georgia.
Furthermore, obtaining a passport facilitates easy entry and exit from Georgia to European countries without a visa for the owner and their family. The conditions for acquiring property align with the nature of residency in Georgia and the laws governing residency in the country. Moreover, Georgian property laws allow purchasing directly from the owner without a real estate marketing company, agent, or broker, which saves on additional costs associated with commissions and other fees.
Buying Property in Georgia (Tbilisi/Batumi)
The real estate market in Tbilisi is largely the largest in Georgia, as it is home to nearly a third of the country’s population. However, good investment opportunities can be found in other areas, especially in Batumi on the Black Sea coast, the second-largest city in Georgia. Kutaisi also offers affordable real estate investment opportunities, with property prices in Georgia – Kutaisi being about half the prices in Tbilisi.
The real estate market in Batumi has seen significant development in recent years, with a record number of residential units being built until 2022. The real estate supply greatly exceeded the demand, but in 2022, this trend started to reverse as Batumi began to experience a decrease in the high demand for rentals seen in Tbilisi.
Legal concerns when buying property in Georgia
The process of buying property in Georgia can be somewhat complex, as is the case with any property purchase process in any other location. Therefore, it is necessary to seek legal advice and engage a lawyer to conduct due diligence on the property. Fortunately, according to international standards, these costs are not exorbitant.
One legal issue is the potential for property prices in Georgia to be raised by the property owner without justified cause. However, you can negotiate through your own lawyer or legal representative (in Georgian) or we advise you to withdraw to avoid financial risks.
Why do property prices in Georgia vary?
Of course, property prices in Georgia vary within different cities due to differences in apartment size and geographic location. Apartments located in the heart of the capital with larger sizes will have higher prices compared to properties in smaller cities or suburbs, as well as smaller properties. Additionally, the intermediary or real estate company that mediates between the property owner and the buyer or tenant can also affect the prices.
However, it cannot be denied that property prices in Georgia, in general, are significantly cheaper and lower compared to other European countries, especially property prices in the capital, Tbilisi. There are apartments available for sale in Tbilisi with all services and great views, despite their location, but they do not reach the prices of properties in other European capitals. Furthermore, property prices in Georgia are lower in smaller cities, rural areas, and suburbs, making them suitable for all income levels.
In conclusion, while the final decision regarding purchasing and investing in Georgia ultimately rests with you, you will certainly need some assistance to make an informed decision, especially considering the significant variations in property prices in Georgia. We hope that through this article, we have provided you with information that will help you make your decision regarding renting or purchasing a property in Georgia. In general, Georgia is a friendly country where you can safely reside and invest, but do not forget to seek ongoing legal assistance. For more information about life in Georgia, you can contact us. Our support team is always welcoming.