Key Features
Key Features
Real Estate prices in Tbilisi or ski resorts | from $1,200 per m2 |
Real Estate prices in Batumi | from $400 per m2 |
Down payment | 30% of property value |
Interest-free installments | Within 12-36 months |
Return on investment | after 5-7 years |
Annual growth rate of real estate value | 15-20% |
Time to process documents for the registration | 1-4 days |
Minimum property value for individual residence permit | $100,000 |
Minimum property value for family residence permit | $300,000 |
Validity of short-term residence permit (can be renewed annually for up to 12 years) | 1 year |
Long-term residence permit | after 5 years |
Summary of key features
There are also disadvantages
The real estate market in Georgia, like in any other country, is divided into a primary market and a secondary market. The disadvantages of acquiring real estate in this country include the risks that arise in this case.
In the primary market (from the developer)
When buying real estate in the primary market, the buyer invests either in a finished apartment or in real estate that is still under construction. In the latter case, you can get a good discount and agree on the repairs: the location of the pipes, the color of the tiles, the type of flooring, etc.
However there can be the risk of the developer going bankrupt before delivering the construction. Even if such situations in Georgia in recent decades have become less and less common, the investor may still face unexpected issues if the developer fails to fulfill his formal obligations:
- Construction not completed on time
- Quality of work not corresponding to the declared one
- Different materials from the ones that were agreed upon
In the secondary market (from the owner)
The secondary market allows you to find and buy real estate at a bargain price, you can choose the location and don’t have to wait for the completion of construction. But even in this case, there can be pitfalls:
- Ownership problems (several owners, not fully formalized inheritance rights),
- Apartment under bail (has been seized)
- Other obligations, such as large debts for utilities
Therefore, before buying a property, it’s important to carefully study the reputation of the ownership with the help of a lawyer.
Our team can help you to avoid these risks. We perform a thorough check of the property, the owners/developers, legal structure, and previous history.
Form of payments to buy real estate
Currency in GEL (Georgian lari)
If you make a payment in Georgia, then you can pay for the purchase of real estate only in Georgian Lari. The use of another currency for these purposes in the country is illegal. And in the case of a transfer from another country (international payment), you can use any currency. True, it will cost more, because the bank will charge a commission for the conversion. In addition, the international payment is carried out for several days.
Cryptocurrency
You can also pay for real estate with cryptocurrency. The transaction does not take place as a payment, but as a barter – an exchange of cryptocurrency for real estate ownership. In this case, the payment will be quick, but it” is necessary to have legal assistance and a well-thought-out contract to not incur issues.
Mortgage
Another way to pay for the purchase of real estate is a mortgage. It is also given to foreigners. Usually, this requires a deposit (the property itself) and an initial payment of 20-30% of the total value of the property. The average rate in the bank is 5-12%.
Summary: How to choose a property
If an investor plans to rent out real estate, he needs a ready-made apartment that will quickly start generating income. And if he buys it for further resale, it is more profitable to enter into an agreement with the developer. The lowest value for real estate, which is at the stage of excavation. By the time the apartment is put into operation, its value will reach the market value – you don’t even have to wait a year or several years until its value rises. And if you make repairs, you can earn 35-40%.