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05.03.2022
Reading time: 2 minutes
Author: Sea Inside

Real Estate in Georgia: What You Need to Know Before Buying

The influx of tourists in 2010-2019 increased the demand for real estate in Georgia. Entrepreneurs began to buy apartments to rent them out. And earn money on it. There are many foreign citizens among the buyers. They buy houses in the capital Tbilisi and in popular tourist towns Batumi (sea resort) and Gudauri (winter resort). In response to the increased demand, the construction market intensified - builders began to build more objects. The construction boom, which began a bit halted in the pandemic, but is quickly recovering as restrictions are lifted.

Real estate in Tbilisi: prices and conditions

The cost of apartments in Tbilisi varies depending on the area and condition. Secondary real estate is cheaper. New construction is more expensive, as the demand is higher. Houses in Georgia are sold in three stages: white-frame, black-frame and turnkey. Buying in the white frame stage is cheaper. But you'll have to wait until construction is complete. Buying a turnkey apartment, the buyer will pay more, but will get a ready-made home to move in (or start renting).

Average prices in Tbilisi:
- Downtown areas - from $700;
- Central - from $1000.

On average, you can buy a turnkey apartment of 50 square meters in a new building close to the center for $60,000. If you buy real estate for $100 thousand, you can get a residence permit for Georgia.

Real estate content

There are no property taxes in Georgia. This distinguishes it from other countries (we are talking about taxes on ownership and purchase). However, in the case of renting and earning money, you have to pay income tax (5% per year). To do this you need to register at a special register of landlords Revenue Service.

Property insurance is not obligatory. There is no rent payment in Georgia, as it is customary in some countries. As for utilities, rates in Georgia are lower than in other countries. Payment for electricity (0.22 GEL/kWh), gas (0.54 GEL/m3), water (0.50 GEL/m3), internet ($20) and waste collection (GEL 5 per person) costs an average of about $80 per month.

If the apartment complex has a management company, you will have to pay for its services. Why do you need a management company? They are responsible for cleaning the entrance, protecting the adjacent territory, and maintaining elevators. Her services are paid for at a rate of $0.50-$1 per square meter of housing. An additional service offered by a management company is apartment or apartment management. This is convenient for foreigners who own an apartment in Georgia, but live in another country. The management company takes care of renting out the apartment and reports to the owner. On average this function of the MC costs 10-40% of the rent price. We spoke in detail about the work of the management company here.

Testimonial of a novice investor

Is it worth buying real estate in Georgia? Here is what Nikita from Kazakhstan thinks, who bought an apartment in Batumi, in the hotel and residential complex Blue Sky (Holiday Inn brand):
"Investing in Batumi real estate is justified because it is a popular resort. I think there is no point in keeping money in the bank. You have to be a fool to put $100,000 in the bank and get a profit of 1%. Money should generate income. When choosing which country to buy real estate, I was guided by two factors. It is an affordable price and the prospects for development. Probably I could have considered other countries too, but Georgia has prospects - the country is developing. Even if I get less income than promised, say 5% per annum instead of 8-11%, I will consider that buying an apartment in Batumi is a successful investment.

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