How to Start Investing in Real Estate in Georgia

How to start investing in real estate in Georgia? This is a question asked by many investors seeking safe and promising investment destinations outside their home countries, especially in light of global economic fluctuations.

Among the destinations that have recently shone brightly, Georgia has emerged as a smart and attractive option thanks to its political stability, rapid economic growth, and legal structure appealing to foreigners.

In this comprehensive article, we will cover everything you need to know about real estate investment in Georgia, from understanding real estate prices in Georgia to the best areas for real estate investment.

We will also go through the steps of buying property in Georgia for foreigners, identify the returns on real estate investment in Georgia, and discuss the role of Mbany Real Estate in facilitating legal and administrative processes for investors.

Why is real estate investment in Georgia a smart choice?

Advantages of Real Estate Investment in Tbilisi, Georgia

Real estate investment in Tbilisi, the Georgian capital, offers several advantages, including:

• Low purchase cost compared to other European and Asian countries. A luxurious apartment in Tbilisi can be purchased for no more than $80,000.
• Low operating costs, whether for maintenance or annual property taxes.
• Attractive rental yields ranging from 6% to 12% annually, especially in tourist areas.
• Constant increase in demand for apartments from tourists and students.
• The possibility of converting the property into a steady income through tourist or long-term residential rentals.

Government Facilitations for Investors

• No local partner is required to own property.
• The government provides tax exemptions in specific areas to encourage investment.
• Investors can apply for permanent real estate residency if the investment exceeds $100,000.
• Speed and ease of registration processes, with all procedures completed in just two days.

Overview of the Real Estate Market in Georgia

Real Estate Sector Development After 2020

The real estate market in Georgia has witnessed tremendous development after the COVID-19 pandemic, with increased demand for real estate from foreign investors seeking new destinations. Apartment prices rose by 15% in 2023 alone, especially in Tbilisi and Batumi.

Demand for Residential and Commercial Apartments

• Increased demand for apartments for sale in Georgia due to tourism growth.
• Expansion of the real estate market to include commercial properties such as offices and shops.
• Significant demand from Arab communities, especially in Tbilisi.

Steps to Buy a Property in Georgia for Foreigners

Real Estate Ownership Procedures in Georgia

• Search for the appropriate property according to the investment goal (residential or commercial).
• Sign a preliminary contract that includes all legal details.
• Go to the Public Service Hall in Georgia to register the property in the buyer's name.
• No need for residency or a tax identification number to own property, which makes things easier for foreigners.

Conditions for Buying an Apartment in Georgia for Investors

• Only a valid passport is required, without the need for any additional documents.
• Ownership in the buyer's name is 100% complete without any partner.
• No restrictions on the number of properties that can be owned.

Best Areas for Real Estate Investment in Georgia

Tbilisi – The Economic and Cultural Capital

• Areas like Vake and Saburtalo offer modern apartments with high rental yields.
• Proximity to universities and commercial centers makes them ideal for long-term and short-term rentals.
• The continuously rising price per square meter makes it suitable for long-term investment.

Batumi – The Fastest-Growing Seaside Destination

• Located on the Black Sea, it is considered a major tourist center.
• Real estate prices in Batumi, Georgia, are still lower than in Tbilisi, making it attractive to novice investors.
• New projects offer hotel units ready for rent through Airbnb.

Real Estate Prices in Georgia 2025

Comparison of Real Estate Prices in Tbilisi and Batumi

• Tbilisi: The square meter in central areas starts from $1200 and reaches up to $2000.
• Batumi: Prices range between $800 and $1500 per square meter.
• These prices are low compared to European capitals, making buying a property in Georgia a smart economic choice.

Price Growth Expectations

• Real estate prices in Georgia are expected to continue to rise at a rate of 10-15% annually until 2027.
• Increased demand for ownership by foreigners is leading to pressure on supply and increased prices.

Returns on Real Estate Investment in Georgia

Annual Rental Yield

• The average return from residential apartments ranges from 6% to 9%.
• The return from tourist apartments can reach 12% during peak season.
• Rewarding returns compared to neighboring real estate markets.

Increasing Property Value Over Time

• Georgian properties are experiencing steady growth in value, especially in projects close to public transportation and service facilities.
• Investing in Georgia combines annual returns and capital appreciation.

Is Property Ownership in Georgia Available to Foreigners?

Laws Regarding Property Ownership

• Any foreigner has the right to full ownership of residential or commercial property without restrictions.
• Currently, foreigners are not allowed to own agricultural land, but there are legal alternatives such as long-term lease contracts.

Advantages of Ownership for Arab Investors

• Real estate ownership in Georgia opens the door to obtaining legal residency.
• The property can be used as a document to support family residency applications.
• The possibility of selling later and realizing capital gains.

Real Estate Investment Opportunities in Georgia 2025

New Projects and Residential Complexes

• Real estate development companies are launching integrated projects in Tbilisi and Batumi that include residential and hotel apartments.
• Providing payment facilities in installments without interest.

Hotel Apartments and Tourist Units

• Ideal for renting via Airbnb, especially in tourist cities.
• High occupancy rates throughout the year due to tourism growth.

The Role of Mbany Real Estate in Facilitating Investment

Consulting Services and Free Evaluation

• Mbany Real Estate provides detailed feasibility studies for each project.
• Helps investors choose the right property according to their goals.

Legal and Purchasing Support

• Full legal support from the moment of negotiation until registration.
• Checking the legal status of the property and ensuring investor protection.

Golden Tips Before Buying a Property in Georgia

Verify the Legal Status of the Property

• Make sure the property is officially registered and has no debts or disputes.
• Reviewing the property registry is essential before signing.

Contract with a Reliable Agent

• Dealing with a licensed company like Mbany Real Estate guarantees your rights.
• Staying away from unaccredited brokers protects you from fraud.

Frequently Asked Questions: How to Start Investing in Real Estate in Georgia

Conclusion: How to Start Investing in Real Estate in Georgia Successfully?

Real estate investment in Georgia is no longer just an opportunity, but has become a smart strategy in light of an encouraging investment environment, reasonable prices, and flexible laws.

By following the steps to buy a property in Georgia for foreigners, choosing the best areas for real estate investment in Georgia, and with the support of Mbany Real Estate, any investor can start their journey with confidence.

Seize the real estate investment opportunities in Georgia 2025 now and start building your future wealth from the heart of Tbilisi or Batumi, in a thriving market open to all.