Review: Why I decided to buy real estate in Batumi | Investor’s story from the first person | Sea Inside
Every entrepreneur who earns money by renting real estate has his own success story. We asked Vitaly, one of our clients, a businessman from Russia, to share his.
Vitaly, an experienced investor, knows well what “real estate rental income” is. He owns real estate in Russia and successfully earns money from it. Here is Vitaly’s story about how he entered the foreign market.
How I bought a property in Georgia
I have four apartments in Moscow. I rent them out and get a regular stable income. At some point, I realized that it was time to expand the business. I thought about Sochi: it is, after all, a resort city. But while I was thinking, Sochi banned the construction of high-rise buildings. The price of the apartment I was planning to buy has gone up. Before the moratorium, it cost 7 million ($95,000), after, 11 million ($150,000). The difference of 5 million rubles is a lot.
But I didn’t despair. In addition to Russian, I was looking at foreign resorts, in Bulgaria and Georgia. Georgia was especially attractive to me. The fact is that I often rested in Batumi as a child. My mom is from there. Now my relatives live there.
But I decided not to buy real estate in Batumi right away. There is no need for haste in such matters. In 2019, I went to Batumi; it was my first visit in the last 20 years. I wanted to relax, well, and at the same time explore the local real estate market. After studying the situation on the spot, I made sure that this is a good idea for investing in real estate. There are good reviews about life in Batumi. The sea in Batumi is clean, the infrastructure is developed, the people are friendly.
The next year, in 2020, I found the Sea Inside agency. Together with the manager, we selected several potential apartments. I reviewed them and chose the Alliance Palace hotel and residential complex. I know that the investment attractiveness of real estate is characterized by two factors: location and a big name. There were several reasons for my decision. Firstly, it is located on the first coastline, close to the sea. Secondly, the price is more than acceptable compared to the prices of Russian real estate with similar conditions. And, thirdly, because it is operated by the well-known hotel brand Courtyard by Marriott. Global hotel chains do not enter the market if they do not see potential in it. In April 2021, I bought an apartment. I bought it remotely: since I studied all the details earlier, there was no point in coming. I look to the future with hope. Batumi is growing by leaps and bounds. If everything goes as I plan, in five years the purchase will fully pay off. Maybe I’ll buy a house in Georgia.
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