Key Facts about Real Estate Sector in Georgia
Real Estate and Hospitality are one of the fastest growing sectors of Georgian Economy. Over the recent years Georgia has seen a dynamic growth of international visitors, in 2018 the number of international visitors reached 5.9 million while the population of Georgia is 3.7 million people. Number of international tourists’ arrivals is expected to grow by 8-10% during the next five years. The upcoming major resort development projects include an exclusive 315 ha sun-beach resort Gonio on the Black Sea
Already-operational international hotel chains include Sheraton, Radisson, Marriot, Rixos, Holiday Inn, Millennium, Best Western, etc. Most international hotel chains in Georgia are positioned in the higher segment, there is untapped potential to develop mid class hotel brands.
WHY INVEST IN HOSPITALITY & REAL ESTATE
Rich Natural and Cultural Resources
Distinctive among the world’s nations with its biodiversity, Georgia boasts rich natural and cultural resources and is home to more than 12,000 historical and cultural monuments, four of which are included in the list of UNESCO World Heritage Sites.
Regional Center
Georgia is a regional center located on the shortest route between Europe and Asia. International visitors enjoy easy access by three international airports (Tbilisi, Batumi and Kutaisi), modern railway and visa liberalization system. Georgia has Visa Free Regime with Citizens of 94 countries and additionally holders of valid multi visas or/and residence permits of 50 countries may enter and stay in Georgia for 90 days within one year period.
Continuous Increase of International Visitors
According to UNWTO (World Tourism Organization), among European countries Georgia had one of the highest growth rates of international tourist arrivals during last three years. The average annual number of international travelers from 2007 has been increasing by 23% yearly.
Various Type of Resorts
Adjara Region is famous for its black sea coasts and bright life style, while winter resorts offer an extraordinary experience including free ride and heli-skiing. With Tskaltubo medical and wellness resort Georgia is a unique wellness and SPA destination in the Region. For those who enjoy gaming, Georgia can provide a high quality gaming experience equal to world class gambling destinations without the restrictive legislation.
Considerable Potential to Develop Real Estate
Georgia offers significant potential to develop hotel & leisure, residential, retail and office premises. According to A.T. Kearney, Georgia is “an under saturated small gem” and ranks 6th in the Global Retail Development Index 2015. Additionally investors can benefit from the growing demand on “A” class office buildings and entertainment facilities.
Visiting Real Estate Constructions in Batumi | Orbi Twin Towers, Dar Towers and more
I decided to show you some exciting ongoing constructions in Batumi. If you plan to invest in real estate in Georgia, this video might be helpful for you to get understanding of real estate pricing and market.
What we do
We offer a specialized service to individual home buyers and investors looking to benefit from the myriad of opportunities in Georgia. We are here to help with every step of your purchase from the first offer to moving in. Our services include:
The Purchase
After consulting with you to outline your needs and wants, we will show you the properties that best fit your requirements. All of our properties are personally vetted by us so that we can feel 100% confident in the projects we show you.
Registration
We will help you to register the property with the Public Registry Office. We can also assist with acquiring Permanent Residence status in Georgia if required.
Finishing
Most apartments in Tbilisi are sold on a White Frame basis. We will work with you to finish your apartment to your unique and detailed specifications.
Interior Design
Our Interior Design Division can then take over and bring your apartment up to full ready-to-rent status, right down to soft-furnishings and cutlery.
Long and Short Term Rental Management
Once the apartment is up to standard, we will market your property in order to achieve the highest yields for investors. Our photographers will ensure that your apartment really stands out from the crowd, and attracts the best tenants. Once a tenant is retained, our team will handle all necessary details such as payment, lease agreements, and maintenance.
For short-term rentals such as AirBnB or vacation rentals, we can post online advertisements, handle maintenance and cleaning between guests and offer airport pickups and other specialized services.
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Some Construction Companies in Batumi
Price Starting from 1560$ sq.m
Price Starting From 1400$ sq.m
Price Starting From 1450$ sq.m
Price Starting from 550$ sq.m
Price Starting from 590$ sq.m
Price Starting from 660$ sq.m
Aliance Palace – Marriot Batumi
Price Starting from 2400$ sq.m
Price Starting From – 1000$ sq.m
Price Starting From 1000$ sq.m
Price Starting from 400$ sq.m
Price Starting from 500$ sq.m
Price Starting from 700$ sq.m
Price Starting from 1400$ sq.m
Price Starting from 380$ sq.m
Price Starting from 550$ sq.m
Restrictions for Foreigners on Real Estate in Georgia
Investment Properties in Batumi: Exploring Opportunities Under $30,000 USD
Batumi, Georgia, has been a growing hub for real estate investment in recent years, attracting foreign investors looking for profitable opportunities. However, the market landscape has evolved, and investment options under $30,000 USD have become increasingly rare. Current market conditions, the feasibility of finding such properties, and potential alternatives like co-ownership.
Is It Still Possible to Find Properties Under $30,000 USD in Batumi?
A few years ago, finding investment properties in Batumi under $30,000 USD was possible. However, as the real estate market in Batumi has grown more competitive, property prices have increased significantly. Deals that were once available for $30,000 USD or less are now priced much higher.
To give you an idea of the current market trends:
Minimum Investment:
The cost of a studio flat, which was once under $30,000 USD, now typically starts at $40,000 USD or more.
Expected Returns:
While finding properties at this lower price point is challenging, you can still aim for an annual return of at least 10% on your investment if you manage to secure a profitable property.
Co-Ownership: A Viable Alternative for Smaller Investments
If your budget is still under $30,000 USD, one option you might consider is co-ownership. This investment model allows multiple individuals to pool their money together to purchase a higher-value property. In Georgia, up to 10 people can co-own a single property, dividing ownership and returns based on the proportion of their investment.
Co-ownership offers several advantages:
Luxurious Properties:
Instead of purchasing a small, less promising property on your own, you can invest in a more luxurious and higher-quality asset.
Shared Income:
Rental income and capital gains from the sale of the property are split among the co-owners according to their share of the investment.
However, it’s crucial to approach this method cautiously. Co-ownership in Georgia is not as common as in other countries, such as the U.S. Real Estate Trusts. As a result, it’s vital to partner with reliable and legitimate companies that can manage the investment process transparently and legally.
How to Choose a Reliable Co-Ownership Company
Given that co-ownership is less common in Georgia, it’s important to:
Research Thoroughly:
Ensure that the company facilitating the co-ownership is legitimate and has a good track record of managing investments successfully.
Legal Compliance:
All transactions and agreements should be legally binding, transparent, and well-documented to protect your investment.
Rental Income & Capital Gains:
Make sure that the company can provide clear projections for rental income and potential capital gains.
Current Market Trends in Batumi
The Batumi real estate market has seen significant growth in recent years, making it a competitive environment for investors. Prices have risen, and finding deals under $30,000 USD that offer good returns has become increasingly difficult. However, by exploring alternative investment strategies like co-ownership, investors can still find profitable opportunities.
While the days of finding profitable investment properties in Batumi under $30,000 USD may be over, there are still viable alternatives for investors looking to enter the market with smaller budgets. Co-ownership provides a way to invest in higher-quality properties and share the income generated from them. However, it’s essential to choose a reliable and legitimate company to facilitate the process.
If you’re interested in exploring investment opportunities in Batumi or want to learn more about co-ownership, we offer expert services to guide you through the process. Contact us today to discuss how we can help with your real estate investments.
The Most Profitable Real Estate Investment in Batumi as of 2022
Batumi, Georgia, has emerged as a hotspot for real estate investment, attracting foreigners with its affordable prices and high return potential. However, before investing into the Batumi real estate market, investors need to understand which property types offer the best profitability. In this post, we’ll explore the most profitable real estate investments in Batumi as of 2022, based on market trends and insights.
Understanding Profitability in Batumi’s Real Estate Market
Profitability in real estate isn’t solely about rental income. One key aspect that many investors overlook is property appreciation. This is particularly important in Batumi, where property values are continuously rising. When making an investment, it’s crucial to think long-term, considering both the potential return on investment (ROI) and the property’s appreciation value.
Top Property Types to Consider: Flats vs. Villas
When evaluating property types in Batumi, two main options come up: flats (apartments) and villas. While flats are built year-round, leading to an increase in supply, villas have a limited supply, primarily due to the scarcity of available land. This difference in supply has a significant impact on the profitability and future appreciation of these property types.
Flats:
Flats are a popular choice among investors, mainly due to their availability and relatively lower price points. However, with increasing supply, the market for flats becomes more competitive, which can limit potential appreciation.
Villas:
On the other hand, villas offer higher appreciation potential due to their limited supply and higher demand. Although the upfront cost of purchasing a villa is higher, the long-term ROI often outweighs the initial expense.
The Rising Demand for Villas in Batumi
Villas are not only attractive for personal use but also as rental properties. Despite their higher cost, villas offer something that many other types of properties in Batumi do not: exclusivity. Surprisingly, when conducting market research, we found a shortage of available villas for rent. This shortage means that rental demand is outpacing supply, leading to faster rental turnovers and higher rental yields.
In fact, we experienced this first-hand when a villa we managed was rented out within just one day during the winter—a time when it’s typically more challenging to rent out properties. This is in stark contrast to flats, which can sometimes take much longer to rent out.
Affordable Investment Solutions for Villas
While villas are more expensive than flats, there are still ways to make these investments more accessible. For investors with limited capital, co-ownership of villas is a viable option. Co-ownership allows multiple investors to jointly purchase a villa, sharing both ownership and rental income. This approach provides a legal and cost-effective way to benefit from the high ROI that villas offer without needing to come up with the full purchase price.
Co-Ownership: How It Works
Co-ownership of villas involves two or more investors sharing ownership of the property. Each investor has a legal share of the property, and the rental income is divided based on the ownership percentage. The co-owners must agree on decisions regarding the sale of the property, making it a long-term investment option. Co-ownership also yields a healthy ROI, with current returns on villas ranging from 15% to 20%, which is significantly higher than the average ROI for flats.
How We Can Help You Invest in Batumi
At our agency, we offer various ways to help you invest in Batumi’s real estate market:
Exclusive Property Listings:
Ready-Made Villas:
Custom-Built Villas:
Real Estate Assistance:
If none of these options suit your needs, you can hire our dedicated real estate experts to guide you through your investment journey.
While flats continue to be a popular investment choice in Batumi, villas offer a unique opportunity for higher returns, both in terms of rental income and property appreciation. Whether you’re considering purchasing a villa outright, opting for co-ownership, or building your own, Batumi’s real estate market provides a range of options for investors looking for profitability in 2022 and beyond.
Interested in Investing in Batumi Real Estate?
Contact us today to explore the best real estate opportunities in Batumi, Georgia.
Comparing Real Estate Development Projects in Batumi
Batumi, Georgia, has experienced a rapid transformation in real estate development, emerging as a top destination for investors and homeowners alike. With an array of luxurious and middle-class properties, the city offers something for every type of buyer. Whether you’re considering vacation rentals, long-term investments, or simply a second home, Batumi’s real estate market has a diverse range of options. In this blog, we compare some of the top development projects in Batumi to help guide your investment decisions.
Luxurious Real Estate Projects in Batumi
Batumi has seen remarkable growth in luxury real estate, and developers continue to raise the bar year after year. Among these high-end projects, Orbi’s PCT and Beach Tower stand out as favorites for many investors, especially for vacation rentals. Both projects are known for their high-quality construction, stunning views, and strategic locations.
Orbi Beach Tower:
What makes this project truly special is its uninterrupted view of the boulevard, offering a serene, panoramic vista. This makes it highly attractive for vacationers and rental investors alike, as the view is unlikely to be obstructed by future developments. Orbi Beach Tower is particularly popular due to its combination of location and luxurious amenities, which include on-site management services.
Middle-Class Property Options in Batumi
While Batumi boasts luxurious properties, there are also fantastic opportunities in the middle-class property market, offering investors more affordable options without sacrificing quality.
Horizons Group:
Although not the personal favorite of many, Horizons Group has carved a niche in the market for offering budget-friendly properties. Investors can find apartments here for as low as $30,000. However, it’s advisable to proceed with caution when investing in developing projects, as the quality and timeline can sometimes be unpredictable. Make sure to invest only in completed and fully functional properties to avoid any risks.
New Wave Project:
Another notable development is the New Wave Project. Competing directly with Orbi, this project offers various property types, including black and white frame units as well as fully finished apartments. While New Wave presents a tempting offering, it falls short in terms of standardization and rental flexibility. Unlike Orbi, New Wave does not allow investors to manage rentals independently, which could be a potential drawback for those looking for flexibility.
Underrated Gem: Cozy, Clean, and Close to the City
If you’re in search of a smaller, cozier investment option, there’s a project near Batumi’s shopping center that stands out. Its close proximity to the boulevard, combined with its clean and cozy layout, makes it a great option for those who prefer a more intimate living environment.
Prices and Availability:
Apartments here are priced around $700 per square meter for white-framed units, with fully furnished options available for around $850 to $900 per square meter. Given the proximity to the sea, these prices are quite reasonable, making this project a hidden gem for savvy investors.
Why Invest in Batumi Real Estate?
The real estate market in Batumi offers immense potential for growth. Developers continue to elevate their standards, attracting both local and international investors. Whether you’re interested in luxury properties or more affordable options, Batumi’s diverse real estate portfolio ensures there’s something for everyone.
With competitive pricing, stunning views, and growing infrastructure, investing in Batumi real estate is an opportunity worth exploring. Always conduct thorough research, and consider working with a local expert to ensure a successful investment.
How Much Rental Yield Can You Expect from Property Investments in Batumi?
Investing in real estate has always been a popular choice for those looking to generate passive income. Batumi, the vibrant coastal city of Georgia, has emerged as a prime destination for property investment, drawing interest from both local and international buyers. But just how much rental yield can you expect from property investments in Batumi? In this blog, we’ll delve into the factors affecting rental returns and provide insights based on the current real estate market in Batumi.
Understanding the Real Estate Market in Batumi
Batumi’s real estate market has seen considerable growth over the past few years, thanks to the increasing number of international investors and the city’s growing tourism industry. Renowned international hotel chains such as Hilton and Marriott have already set up shop in Batumi, signaling the potential of this city as a hub for tourism and property investment. However, like any market, it has its ups and downs.
According to a local real estate expert, the once-common rental yield of 20% is now harder to come by due to the ongoing pandemic and oversupply of properties. Before the pandemic, high yields were supported by the increasing flow of tourists. With travel restrictions still in place, the dynamics have shifted, but there is optimism for future recovery as tourism rebounds.
Long-Term vs. Short-Term Rental Options
With uncertainty surrounding tourism, many property owners in Batumi, including the expert, have shifted their focus to long-term rentals. The stability provided by long-term tenants offers consistent returns even during uncertain times. Based on the expert’s own experience, their current investment yields a 10% return through long-term rental agreements. This is a more realistic expectation for investors, particularly in the current market conditions.
On the other hand, short-term rentals, typically through platforms like Airbnb, have the potential to yield higher returns, especially during peak tourist seasons. However, with the unpredictability of the tourism industry, it may not be a reliable source of income in the short term.
Factors Influencing Rental Yields in Batumi
Pandemic Impact:
The COVID-19 pandemic has had a significant impact on Batumi’s real estate market, reducing the number of tourists and affecting short-term rental income. Despite this, the expert believes that once restrictions ease, short-term rentals will regain their profitability.
Location and Property Type:
Prime locations near Batumi’s beaches or city center are likely to generate higher rental yields. However, the expert suggests that diversifying property types, such as houses with yards, can attract long-term renters who seek more space and comfort—particularly after the pandemic has made outdoor space more desirable.
Property Price Growth:
Real estate prices in Batumi are on the rise, with material costs increasing due to inflation. Properties that were underpriced just a couple of years ago have already appreciated by 30%. As construction costs continue to rise, the value of existing properties is expected to increase, offering long-term capital gains for investors.
Undersupply of Certain Property Types:
The expert notes that larger properties and houses with land are in higher demand and face less competition than high-rise apartments. This is partly because developers focus on building high-density apartments, leaving a gap in the market for properties that offer more space and privacy.
Future Outlook for Batumi Real Estate Investments
Despite the current challenges, Batumi remains a promising destination for real estate investment. With the involvement of international hotel brands and the city’s increasing appeal as a tourism destination, there is potential for substantial returns once the market stabilizes. The expert highlights the importance of choosing properties that cater to different customer demographics, such as remote workers or families, to diversify your investment portfolio and mitigate risks.
Additionally, investing in properties that you would personally be comfortable living in is a key tip from the expert. If you can see yourself living in the property, chances are it will attract tenants with similar preferences, making it a solid investment choice.
Summary:
Batumi offers a unique opportunity for real estate investors, with the potential for both short-term and long-term rental income. While the current rental yields may not be as high as pre-pandemic levels, there is still a healthy 10% return for long-term rentals, and the potential for higher gains once tourism picks up. If you’re considering investing in Batumi, now may be the perfect time to take advantage of rising property values and prepare for a post-pandemic market recovery.
Contact Us for Real Estate Investment in Batumi
Interested in learning more about real estate opportunities in Batumi? We’re here to help. we can guide you toward finding the perfect investment property. Contact us today to start your real estate journey in Batumi!
Expats.
My husband and I are interested in buying an apartment in Batumi for our family. We would like a finished & furnished place of around 50-70 sq meters. It has to be available in early June. We would like to spend around $60-70 k cash. Plus located near the sea of center of town.
I will happily assist you with that. I just sent you an email