Since the beginning of 2022, the demand for real estate in Georgia has increased dramatically. How has the market changed and what forecasts do experts make?
According to the statistics of the Ministry of Internal Affairs of Georgia, over one million Russians visited the country in the first nine months of 2022. Some of them went to third countries. According to official figures, about 120 thousand citizens of the Russian Federation remained.
Most of those who came rent housing, but there are also many who buy it (some for living, and some for earning). According to the National Public Registry Agency, in the six months of 2022 (from February 24 to September 9), Russians purchased about three thousand objects, about a thousand of which are located in the capital Tbilisi. The total area of real estate purchased during this period by citizens of the Russian Federation is 190,000 square meters (63 square meters on average).
How prices have changed
The increased demand for apartments in Georgia has led to the fact that housing in Tbilisi has risen in price. If earlier a two-room apartment in the capital could be rented for 300-400 US dollars, then after the influx of Russians – for 600 US dollars and more. Newly refurbished downtown options are rented for $1,000-1,200 per month. Not only the rental of apartments in Tbilisi has increased, but also the prices for apartments in Batumi. Today, you can rent a house in this seaside city for no less than $500.
Those who plan to stay for a long time (at least 5-7 years) often prefer not to rent, but to buy with a mortgage. This is beneficial because you can always sell the apartment and get your investment back. Read more about whether to take a mortgage loan, we talked here.
We at SeaInside sell a lot of apartments, apartments, villas and townhouses in Batumi, Tbilisi, Gudauri and other cities, so we noticed that in 2022, not only renting an apartment, but also buying, has risen in price. Last year, two rooms in a new building could be purchased for 50,000 US dollars, today – for 60,000 US dollars. However, experts do not see this as a direct influence of the influx of Russian citizens. Real estate in the country is already becoming more expensive by 10-20% annually. If we add to this the fact that the prices of building materials rose sharply around the world last year, then the increase in the market price of housing was expected.
Why do Russians buy real estate in Georgia
According to official statistics, in general, over the past less than five years (from January 1, 2017 to September 9, 2022), about 20,000 citizens of the Russian Federation have become owners of real estate in Georgia. The peak of activity occurred in the pre-pandemic year of 2019, when citizens of the Russian Federation concluded about 4,200 transactions.
Real estate in this country attracts foreigners, including the fact that its owner can apply for a residence permit. The owner receives such a right, provided that its value is at least $ 100,000 (this requires the conclusion of an “appraiser”). From February to September 2022, about 3,300 citizens of the Russian Federation applied for a residence permit. Of these, just over 2,100 applications have been approved, 700 have been rejected, and about 100 are under consideration.
How to buy an apartment in Georgia?
Easily. All you need is a passport. The popularity of Georgian real estate among Russians is explained by the ease of registration and simplified taxation – you can register a new acquisition in your name in one day. The only expense is the payment of the fee ($20-70 depending on the urgency) at no additional cost. The owner receives an SMS message with a code from the State Register on confirmation of the transaction to the specified mobile phone number.
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Image: sea view apartment in Panorama residential complex in Batumi.
