Costs of Buying Property in Georgia: What You Need to Know

If you are considering buying property in Georgia, you are heading towards one of the fastest-growing real estate markets in the Eastern European region.

Georgia, especially the cities of Tbilisi and Batumi, is a preferred destination for foreign investors due to its economic stability, low real estate purchase costs compared to neighboring countries, and extensive government facilities for investors.

In this comprehensive article, we will cover everything you need to know about the costs of buying real estate in Georgia, focusing on the most important points for you as an investor or a property buyer for the purpose of residence or investment, including:

• Cost per square meter in Tbilisi and Batumi.
• Georgia property registration costs.
• Georgia property transfer tax fees.
• Brokerage fees when buying property in Georgia.
• Translation and notarization costs.
• Georgia real estate investment returns.
• Requirements for obtaining Georgia real estate residency with a $100,000 investment.
• Rental, maintenance, and real estate financing taxes.

Cost of Buying Property in Georgia: A Comprehensive Overview

Average Apartment Price in Georgia by City

• In Tbilisi: The average price of an apartment in the capital ranges from $50,000 to $100,000, depending on the neighborhood, building specifications, and nearby infrastructure.
• In Batumi: Prices may be slightly lower, especially in projects under development, where prices start from approximately $35,000, making the city an ideal destination for those interested in real estate investment or buying for the purpose of tourist rental.

Property Price per Square Meter in Batumi

• The property price per square meter in Batumi ranges from $600 to $900 USD, and rises to more than $1,200 in buildings directly overlooking the sea.
• Tourist neighborhoods such as the Seafront Promenade and Europe Square are among the most expensive, as location is a fundamental factor in determining the cost of buying property in Georgia.

Cost per Square Meter in Tbilisi: Key Influencing Factors

Residential and Commercial Areas

• In central Tbilisi: The cost per square meter in Tbilisi starts from $1,000 to $1,400 in central neighborhoods such as "Vera" and "Vake."
• In the suburbs: Prices drop to $700 or $800 per meter, as in areas such as "Didi Dighomi" and "Gldani."
• Properties near metro lines and international schools are more in demand and therefore higher in price.

Price Variation by Property Type

• Commercial properties in Tbilisi are much more expensive than residential ones, ranging from $1,500 to $2,500 per square meter.
• Modern buildings that offer smart systems and additional services significantly increase the cost of buying property in Georgia.

Georgia Property Registration Costs: What are the Official Fees?

Government Fees for Property in Georgia

• The government fees for property in Georgia upon official registration are only 0.05% of the total property value, which makes Georgia one of the countries with relatively low costs in terms of official procedures.
• If you wish to expedite the transaction within one day, you will pay an acceleration fee of approximately 200 Georgian Lari (about $75 USD).

Electronic Procedures

The Georgian government provides an online portal that allows for the complete remote registration of properties, reducing costs and time required, and enhancing the transparency of Georgia property registration costs.

Georgia Property Transfer Tax Fees

• One of the most prominent advantages of buying property in Georgia is that you are not obligated to pay Georgia property transfer tax fees on the initial purchase of residential property.
• However, if reselling within less than two years, a tax may be imposed on the profits resulting from the difference between the purchase price and the selling price.
• This flexibility is one of the attractive factors for those looking for real estate investment in Tbilisi and Batumi.

Brokerage Fees When Buying Property in Georgia

• Brokerage fees when buying property in Georgia usually range from 2% to 5% of the property value, and vary depending on the city and the services provided.
• It is best to cooperate with licensed and reputable companies, such as Mbany Real Estate, which provides integrated services including legal translation, property inspection, and negotiation on behalf of the client.

The Role of the Real Estate Agent

The agent's role is not limited to showing properties but includes ensuring the safety of documents and following up on the legal registration, which justifies part of the costs of buying property in Georgia.

Costs of Translating and Notarizing Property Purchase Contracts

• Contracts must be translated and notarized by a licensed notary public, and the translation must be certified by the court.
• Costs of translating and notarizing property purchase contracts range from 150 to 500 Georgian Lari, depending on the number of pages and languages required.

Legal Translation

• Real estate contracts require accurate translation, especially when purchasing from a local developer who does not speak English.
• All translations must be officially notarized to be accepted in the real estate registry in Georgia.

Details of Georgia Rental Tax

• Georgia rental tax is imposed at a rate of 5% on the annual income from the rented property, whether for foreigners or citizens.
• Registration as a landlord with the tax authorities is required within 30 days of signing the first lease agreement to ensure compliance.

Registering Real Estate Income

• Failure to file a tax return may result in financial penalties.
• In the case of renting through platforms such as Airbnb, compliance with municipal laws and local regulations is also required.

Georgia Real Estate Residency $100,000

• One of the most important real estate incentives in Georgia is the Georgia real estate residency program of $100,000, which grants foreign investors annual residency when purchasing a property worth at least $100,000.
• After 5 consecutive years of residency, you can apply for permanent residency.

Advantages of Real Estate Residency

• Residency allows you to enter and exit Georgia without a visa.
• You can open bank accounts, register vehicles, and register for municipal services easily.

Georgia Real Estate Investment Returns and Maintenance Costs

Costs of Maintaining Property in Georgia

• The costs of maintaining property in Georgia vary depending on the type of building and the services provided, and range from $0.3 to $0.6 per square meter per month.
• Costs include elevator maintenance, cleaning, public electricity, and security.

Georgia Real Estate Investment Returns

• Annual Georgia real estate investment returns range from 6% to 9%, and may reach 12% in extreme tourist cases.
• Apartments near the sea or tourist areas in Batumi achieve the highest return during the summer season, which enhances the attractiveness of real estate investment in Tbilisi and Batumi.

Terms of Real Estate Financing for Foreigners in Georgia

Some banks in Georgia allow real estate financing for foreigners, but under strict conditions:

• Down payment of 40% to 50%.
• Proof of stable income.
• Short repayment period not exceeding 10 years.

Financing Alternatives

Some real estate development companies offer direct installment plans without bank intervention, which are more flexible in terms of conditions but often short-term.

Frequently Asked Questions: Real Estate Purchase Costs in Georgia

Conclusion: Real Estate Purchase Costs in Georgia – A Smart Financial Decision Starts with Information

In conclusion, the costs of buying real estate in Georgia are considered reasonable and suitable for many investors, compared to other countries in Europe or the Middle East.

From knowing the cost per square meter in Tbilisi and learning about Georgia property registration costs, to understanding Georgia real estate investment returns, this information is essential for making a smart and informed financial decision.

If you intend to invest in real estate in Tbilisi and Batumi or obtain Georgia real estate residency of $100,000, cooperation with professional entities such as Mbany Real Estate guarantees you transparency and security in all stages of the purchase.

Start your journey in the Georgian real estate market today with confidence, and stay informed of all financial and legal aspects before making a decision.