Georgia Real Estate Boom: Why Investors Are Rushing to Buy Property in Tbilisi & Batumi

The Georgian real estate market has witnessed an unprecedented boom in recent years. Investors from around the world are turning their attention to Georgia, drawn by its affordability, ease of ownership registration, and high return on investment. But what exactly makes Georgia such a lucrative market right now? Elias Marino, founder of the real estate agency Geo Estate, shares his insights with our Realting.com reporter, highlighting key investment opportunities.

"You Can Find Lucrative Investment Opportunities in Tbilisi, Including Golf Course Properties."

— The Georgian real estate market has become a hotbed for investors. What are the main factors behind this trend, and how long do you expect it to continue?

— Investing in Georgia's real estate sector is highly attractive due to its strong profitability, low property prices compared to other countries, favorable tax policies, and ease of property registration. Let’s take a look at some statistics:

1. Georgia ranks 12th globally in economic freedom.

2. According to Numbeo, Georgia is among the top 10 safest countries in the world.

3. The World Bank ranks Georgia 7th in terms of ease of doing business:

• 2nd in the world for ease of starting a business

• 5th for property registration

• 7th for investor protection

• 12th for contract enforcement

• 14th for tax policies

These rankings place Georgia ahead of many post-Soviet countries and just behind Denmark among European nations.

The Best Real Estate Investment Locations in Georgia

— Which types of real estate and locations are most promising for investment?

— If you’re looking at Tbilisi real estate, you’ll find great opportunities in apartments, townhouses, and properties featuring professional golf courses. Commercial real estate in Tbilisi is also in demand, including office and retail spaces.

In Batumi, located on the Black Sea coast, investors can explore opportunities in resort real estate, capsule hotels, coworking spaces, wellness centers, and balneology properties. Meanwhile, Georgia's ski resorts are gaining traction, with visitors flocking in for New Year’s celebrations. Additionally, in the Alazani Valley, high-end buyers can invest in luxury villas with private vineyards and wine spas.

— What are the best cities for purchasing property for personal use?

— Whether buying for investment or personal living, I recommend focusing on Georgia's most developed regions. Infrastructure, property quality, and compliance with modern building regulations are crucial factors to consider.

Investing in Premium Georgia Real Estate with Just $10,000

— How has the residential real estate market in Georgia changed in recent years? Have prices increased or decreased?

— Based on Colliers International statistics, compared to 2019:

• In September 2021, Batumi saw a 19% decrease in real estate transactions.

• In Tbilisi, real estate transactions increased by 7%.

According to Geostat, in Q2 of 2021, residential property prices in Tbilisi increased by 10.1% year-over-year:

• Apartment prices rose by 7.5%.

• Private house prices surged by 17.9%.

Experts predict continued growth in demand for private houses and land plots across Georgia.

Real Estate Prices in Georgia’s Major Cities

— What are the price trends for residential real estate in Georgia?

— Prices depend on location and property class:

• In Tbilisi, prime districts like Vake and Mtatsminda have the highest property values.

• In Batumi, properties closest to the sea are generally the most expensive, though some premium developments in the mountains also command high prices.

Average property prices per square meter:

• Tbilisi: $400 – $3,000

• Batumi: $400 – $2,500

Will Real Estate Prices in Georgia Continue to Rise?

— What factors will drive property price growth in Georgia?

— According to Georgia’s National Tourism Administration, the country’s tourist flow increased by over 200% between 2011 and 2019. With this rising demand for short-term rentals, major international hotel brands have taken interest, including:

• Hilton Worldwide

• Marriott International

• Radisson Hotel Group

• Wyndham Hotels & Resorts

• IHG Hotels & Resorts

Additionally, Batumi is currently constructing the first World Trade Center (WTC) in the region, featuring Class A businesses and shopping centers. These developments signal continued growth in the real estate market.

What Types of Properties Are in High Demand?

— Which real estate segments are investors gravitating toward?

— There has been a shift from broad-market projects to innovative wellness resorts tailored to specific demographics. Additionally, crowdfunding investment models are becoming popular, allowing investors to purchase shares in apartments or hotel rooms and receive proportional rental income. This method enables investment in premium real estate starting at $10,000.

Pitfalls to Avoid When Buying Property in Georgia

— What challenges do inexperienced buyers face in the Georgian real estate market?

— If you’re investing, seeking expert guidance is essential. While researching the real estate market in Georgia independently is possible, working with local experts and lawyers is highly recommended. Key advice:

• Avoid impulsive purchases in your first days in Georgia.

• Don’t mix real estate tours with wine tours!

• Hire an independent real estate lawyer to guide you through contracts and legal processes.

Conclusion: Why Georgia’s Real Estate Market Remains a Smart Investment

Georgia's growing economy, attractive tax policies, rising tourism numbers, and booming rental market make it one of the best places to invest in real estate. Whether you're considering buying property in Tbilisi, investing in a luxury villa in Kakheti, or exploring Batumi’s beachfront properties, now is the perfect time to enter this dynamic market.

Thinking about investing in Georgia real estate? Contact us for expert guidance!