The small state of Georgia, with a population of up to 3.800 million people, is located in the Caucasus in a mountainous area and has access to the Black sea. Georgia can be called the fourth Pro-Western state after the Baltic States of the post-Soviet countries, which have achieved great success and are of interest to investors.
Since 2004, Georgia has taken an important step to implement a package of reforms, which today already show positive economic growth, which has a positive impact on attracting foreign investment. Of course, Georgia is not yet a member of the European Union, as the Baltic States, but the country is already beginning to “earn” a good reputation at the international level.
The most interesting cities for investors are the capital of the country Tbilisi, Batumi and Kutaisi. Tbilisi ranks first in terms of affordability of real estate prices and prospects for investment opportunities. Due to the increased influx of tourists and foreign business into the country, the demand for rental housing and premises has increased significantly. But even with the emergence of new hotels, the capital can not fully cope with the influx of tourists. We would like to draw your attention to the capital of the country Tbilisi. The number of capital cities where you can buy a Central property for $ 1,000 per square meter can be counted on the fingers of one hand. That is, Tbilisi today joins the list of cities such as Cairo and Karachi, but in comparison with the Georgian capital, they are less developed. In most cases, the capitals of the States are the main business centers, so investors and entrepreneurs try to buy real estate in the capital to effectively conduct business.
Thus, in the Georgian market rental yield from real estate in Tbilisi is within 5-6%, which is considered to be quite high. The annual growth of property prices is in the range of 5%, and in the most popular areas of the city, the income figure reaches even 6%. For example, in the first quarter of 2018 in Georgia, the level of sales in the country increased by 41.6%, that is, 27,495 properties were sold. At the same time, there is a decrease in the number of new buildings in Tbilisi, in the first quarter of 2018, only 148 houses were commissioned, with a total area of 200,200 sq. m. Market experts explain this decrease in the number of construction projects by the introduction of new standards and requirements for construction companies.
The best conditions have been created to attract foreign investors to the real estate market in Georgia. According to many market experts, real estate in Georgia on a global scale is greatly underestimated and now is the time for potential investors to hurry. Tbilisi, for example, is becoming an increasingly popular place for investment, real estate prices are gradually rising and in the near future, they will only continue to rise.