Georgia's real estate market is experiencing rapid and continuous growth, making Georgian properties attractive to foreign investors seeking profitable opportunities and low living costs.
In this comprehensive article titled "Real Estate in Georgia: Rental Options for Foreign Investors," we will explore in detail the most important points that foreign investors are looking for: from renting in Tbilisi and leasing in Batumi, to the cost of renting an apartment in Tbilisi for foreign investors and rental yields in Georgia for investors.
We also cover the conditions for renting foreign property in Georgia, taxes on rental properties in Georgia, managing rental properties in Georgia for foreigners, and how to obtain residency through renting property in Georgia with the help of Mbany Real Estate.
Overview of the Real Estate Market in Georgia
Why are foreign investors turning to Georgia?
Investors worldwide are drawn to Georgian real estate due to flexible legislation that allows for purchase and rental without restrictions, coupled with market stability and high growth rates.
The real estate market in Georgia is a golden opportunity for those looking to diversify and reduce risks compared to saturated European markets.
Development of Real Estate Investment in Tbilisi and Batumi
With increasing rental activity in Tbilisi and leasing in Batumi, these two major cities have witnessed growth in luxury residential projects and furnished apartments, making them leading destinations for foreign investors seeking stable and increasing operational returns.
Rental Options for Foreign Investors in Georgia
Long-Term vs. Short-Term Rentals
- Long-term rentals are suitable for families, professionals, and students, providing stability in income.
- Short-term rentals, such as renting apartments through platforms like Airbnb, offer higher rental yields in Georgia for investors than traditional rentals, but require active management and continuous monitoring of bookings and cleaning.
Benefits of Renting Tourist Apartments in Georgia
Thanks to the thriving tourism, especially in the Batumi and Black Sea coast regions, investors can achieve occupancy rates of up to 70–80% annually.
This strategy provides foreign investors with benefits from renting tourist apartments in Georgia through flexible pricing and continuous updating of services and facilities.
Cost of Renting an Apartment in Tbilisi for Foreign Investors
Average Rental Prices in Tbilisi
The cost of renting an apartment in Tbilisi for foreign investors ranges between $250 and $800 per month, depending on the neighborhood (Vera, Saburtalo, Vake) and the size of the unit (studio, one-bedroom, two-bedroom). These prices allow for a net profit margin exceeding 6% annually.
Comparison with Other Cities Like Batumi
Prices for leasing in Batumi are 10–20% lower, starting from $200 for small apartments, but the summer tourist season raises rental yields in Georgia for investors to 10%–15% during the months from June to September.
Conditions for Renting Foreign Property in Georgia
Rental Laws and Investor Rights
Georgian law allows foreigners to own and rent out properties freely, without the need for a local partner or agent. This guarantees the investor full rights to receive rents and manage their units.
Requirements for Legal Contracts
It is always preferable to draw up conditions for renting foreign property in Georgia with a contract notarized and referenced in the real estate registry. The contract should include the rental period, rental amount, renewal conditions, and insurance against damages.
Best Cities in Georgia for Renting for Expats
Tbilisi – The Economic and Cultural Capital
Tbilisi is the heart of the real estate market in Georgia, where demand for rental properties is concentrated from various categories, and there is a lot of renting in Tbilisi for different needs.
Batumi – The Premier Tourist Destination
Batumi is famous for being a popular destination on the Black Sea; therefore, rental units in Batumi are in double demand from families and vacationers, which raises the average rental yields in Georgia for investors in this seasonal market.
Taxes on Rental Properties in Georgia
Taxes for Foreign Investors
Taxes on rental properties in Georgia are only 5% of the monthly income if officially declared, which is one of the lowest rates worldwide, enhancing the net returns for the investor.
How to Calculate Tax
The tax return is submitted annually via the electronic system, and the tax is calculated on the total rents received with the possibility of deducting maintenance and management expenses.
Foreign Investor Due Diligence on the Georgian Rental Market
How to Analyze Returns Before Buying
Foreign investors should conduct feasibility studies that include average rental yields in Georgia for investors, annual occupancy rates, and the evolution of rental prices over 3–5 years.
Using a Reliable Real Estate Company
Mbany Real Estate plays a pivotal role in foreign investor due diligence on the Georgian rental market by providing detailed analytical reports, recommending the best units, and offering marketing and legal advice.
Managing Rental Properties in Georgia for Foreigners
Do You Need a Property Manager?
To ensure the highest benefits from renting tourist apartments in Georgia and stable income, it is advisable to delegate property management to a specialized company that handles marketing, collection, and regular maintenance.
Comprehensive Management Services
Some agencies offer integrated packages that include:
- Professional photography and digital marketing.
- Receiving and qualifying tenants.
- Collecting rents and performance reports.
- Regular maintenance and cleaning.
How to Obtain Residency Through Renting Property in Georgia
Residency Through Purchase or Rental
Although permanent residency is often granted upon purchasing property, obtaining residency through renting property in Georgia is possible through long-term rental contracts accompanied by official work or study documents.
Application Steps and Procedures
- A notarized rental agreement for a period of not less than one year.
- Submitting an application to the Immigration Office with a copy of the contract and passport.
- Attaching proof of monthly income or a letter from the employer/university.
- Receiving a temporary residence card and renewing it according to the agreed-upon period.
Frequently Asked Questions: Real Estate in Georgia: Rental Options for Foreign Investors
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Can a foreign investor own an apartment and rent it out in Georgia ?
Yes, Georgian law allows foreigners to own foreign properties in Georgia and rent them out without restrictions.
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What are the expected rental yields in Tbilisi ?
Rental yields in Georgia for investors range between 6% and 12% annually, depending on the location and type of property.
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Is it necessary to pay taxes on rentals ?
Yes, taxes on rental properties in Georgia are only 5% of the declared income.
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What is the best city to invest in for rentals ?
Tbilisi for long-term rentals and Batumi for short-term tourist rentals.
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Can I get residency through rental only ?
It is possible to apply for temporary residence through obtaining residency through renting property in Georgia if the rental agreement is accompanied by an employment contract or university acceptance.
Article Conclusion: Real Estate in Georgia: Rental Options for Foreign Investors
At the end of the guide "Real Estate in Georgia: Rental Options for Foreign Investors," it is clear that the real estate market in Georgia offers excellent investment opportunities for those looking for rental yields in Georgia for investors and suitable living costs.
Whether through renting in Tbilisi or leasing in Batumi, and with the help of Mbany Real Estate to manage your units, you will be able to achieve stable returns and ensure long-term investment growth.
Do not hesitate to contact the experts to prepare a comprehensive feasibility study and implement rental options for foreign investors in Georgia easily and safely.
05-02-2024 
