WHAT IS THE POTENTIAL OF GEORGIAN REAL ESTATE ON THE INTERNATIONAL MAP?
Real estate is usually regarded as one of the most resilient sectors for investment. This was once again highlighted during the pandemic. Recent statistics show that global demand for real estate, and residential properties in particular, has been growing rather than falling.
What is happening in Georgia, and how does the country look on the international map? What can the modern Georgian projects offer foreign investors, and how attractive is our investment climate? Answers to these questions can be found in the TOP PROPERTIES GEORGIA digital catalogue. Focussing on international investors, we selected high-end real estate projects that are attractive in terms of return on investment.
Let us look at a general example: high-end investment real estate in Georgia, which is attractive for foreign buyers, provides 15% annual return on investment, meaning that the cost of purchase can be recovered within 5-7 years. It is worth noting that the rapid growth of tourism in Georgia was accompanied by dynamic development of the investment apartment business, which was competing with hotels. Despite the sharp fall in visitor numbers due to the pandemic, there was persistent demand in this segment. In the current endemic period, demand for investment real estate is growing again. This means that prices are also on the rise. Investment properties are a business with annual income for the owners, but there is another important argument in their favour: the price for this type of real estate increases by more than 200% in the period between the start of construction and its completion (3-4 years).
We should also not forget about the liberal investment environment in this country, which includes the following:
• Registration of real estate ownership in approximately 15 minutes;
• Annual return on investment of 13-15%;
• 0% real estate tax;
• Rental tax of only 5%;
• Right to residence for non-residents purchasing real estate with a value of more than $100,000, including their family;
• No restrictions on the purchase of real estate by non-residents.
Another important factor to note is that property prices in Georgia are still quite low, but they are growing. Current forecasts show that real estate prices in Georgia will be equal to those in Eastern European countries in a few years. This sends a strong signal to potential buyers – now is the time to invest in Georgian real estate! The positioning of Georgian real estate on the international map is very important. A lot of work to this end is carried out by the national branch of the International Real Estate Federation – FIABCI-Georgia, which was established in 2019 at the initiative of the local real estate investment hub Property Georgia. In the process of recovering from the effects of the pandemic, the leading Georgian real estate players have achieved the most important goal: they have managed to adapt to the ‘new reality’ and create or improve digital platforms and other new services. Digitalisation of real estate remains one of the leading means of conducting activities on international markets. Digital, physical and hybrid activities all have their own roles in the process of achieving specific goals.