Property for sale in Georgia
Georgia is a country known for its stunning scenery, rich culture, and welcoming atmosphere, making it a desirable destination for investors. In recent times, Georgia has emerged as a hotspot for global investors, particularly in the real estate sector.
This article will help you to deal with all details of acquiring property for sale in Georgia.
Benefits of getting real estate in Georgia
Investing in real estate for sale in Georgia is appealing for several reasons.
Firstly, property prices in a country are relatively low compared to other countries of Europe, making investments more accessible for beginners. Additionally, there is a high demand for rental housing in Georgia, especially during the tourist season, which can provide a steady income for property owners. Moreover, acquiring property in Georgia for sale can also serve as a pathway to receiving a residence allowance in the country, making it an attractive option for those looking to relocate permanently.
Country is known for its stability and security, with a robust legal framework that safeguards the property rights of foreign investors.
Furthermore, the country’s progressive tax policy offers benefits and reduced real estate tax rates for foreign investors, adding to the appeal of investing.
Overall, these factors combine to make investment in Georgia a lucrative and enticing chance.
Characteristics of Georgian properties
When purchasing a housing here, non-citizens should be prepared to buy it as a “white frame” property. This means that the housing will come with basic amenities such as a metal door, windows, lighting, electricity, water, internet and phone connections, and a heating system.
Typically, housing in a country is sold in this unfinished state, with bare concrete floors and walls, as local buyers prefer to customize their living spaces. However, developers also offer fully finished apartments to cater to the preferences of foreign buyers who may have different expectations.
Is real estate cheap in Georgia?
Tbilisi, the capital, presents an incredible chance for international investors seeking affordability. With pre-construction apartment prices starting as low as $35000, Tbilisi boasts some of the most competitive real estate prices among capital cities in developed nations. If you’re finding prices elsewhere exceeding your budget, Georgia emerges as the ideal destination to fulfill your international real estate aspirations.
How is the real estate market in Georgia?
The Georgian property market is currently experiencing a period of remarkable growth and transformation. A notable shift in customer preferences towards modern and luxurious properties is driving demand for both residential and commercial real estate for sale in Georgia. Several factors contribute to this upward trajectory:
- Supportive policies and programs implemented by the government are fostering a favorable environment for real estate investment.
- Increased interest from international investors is injecting capital and further stimulating market growth.
- Stable economy provides a solid foundation for sustainable growth in the real estate sector.
- A welcoming investment climate with appealing incentives is attracting both local and foreign investors.
Can a foreigner buy a property in Georgia for sale?
Nom-citizens can buy housing under the same rules as local citizens, with no distinction between the two.
Foreign entrepreneurs can also purchase housing for commercial use, and the process is overseen by the Ministry of Finance and Economy.
What should a foreigner know when purchasing a Georgian property?
Foreigners looking to establish a company or relocate to Georgia can enjoy legal rights similar to those of citizens. When purchasing residential property, the process is the same as for locals, with no additional documents or taxes required. Some aspects of acquiring that you need to know:
- The purchase procedure is efficient and can be completed quickly, including ownership registration.
- Stamp duty is not applicable, and standard registration usually takes four days with a fee.
- An express procedure is available for foreigners at an additional cost, allowing completion in a day.
- Foreigners have full ownership rights over their properties, including commercial ones.
What does the purchase procedure imply in Georgia?
When buying a real estate in Georgia for sale, non-citizens typically follow a series of steps:
- The sale is finalized through a contract signed by both the seller and the buyer.
- The next step involves making the initial payment as agreed upon in the contract, usually done by transferring the funds to the seller’s bank account.
- The change of ownership is then registered by the Public Service Hall, under the Ministry of Justice.
- For properties purchased from local developers, payments are usually made in the national currency. It is advisable to conduct due diligence on the property before purchase to uncover any hidden issues and ensure that the property matches the information provided in the purchase documents.
- The Georgian Public Registry can provide admissible information on the property and its owner, including debts, litigations, and mortgages.
- While these documents are issued in Georgian, foreigners can request an official translation for a small fee. The translated document must be notarized by a public notary in Georgia, also incurring a small fee.
What are the average real estate prices in Georgia?
The cost of housing ranges from 500 to 2000 euros per m2. The highest prices are typically found in new properties in Tbilisi, the capital, and popular resort areas. Older properties generally sell for 10-50% less than new ones. Affordable housing options can also be found in rural villages and areas where construction is still ongoing.
What requirements must be taken into account by foreigners planning to buy real estate in Georgia?
Foreigners looking to buy properties for sale in Georgia need only a valid passport, with no additional documentation required. They are permitted to purchase all kinds of housing except for agricultural land, which is restricted to citizens only.
Where is the best place to buy housing in Georgia?
Country provides a diverse range of real estate options, catering to various budgets and preferences.
Luxury Properties:
- Tbilisi, Batumi, Kobuleti, and Borjomi: These popular destinations boast a selection of high-end apartments and houses, ideal for both personal use and investment purposes. Owning property in these sought-after locations provides access to vibrant city life, stunning coastal views, or renowned spa resorts.
Affordable Alternatives:
- Kvariati and Kutaisi: For those seeking more budget-friendly options, Kvariati and Kutaisi present excellent opportunities. These areas offer a wide range of cheap housing in both new developments and the resale market.
What steps to complete after buying a housing?
Once you’ve secured your ideal property, registering it with the Georgian Land Register is a simple and efficient process. With the support of experienced lawyers, navigating this step is a breeze.
Financial Perks of Investing in Georgian Real Estate:
- If you choose to use a real estate agency, their commission fees typically fall between 2% and 3% of the property’s final purchase price.
- Georgia offers one of the lowest property tax rates in Europe, set at a mere 1%, significantly reducing the ongoing costs of ownership.
- Rental properties, especially in the capital city of Tbilisi, have the potential to generate impressive returns, with annual yields ranging from 12% to 18%.
What main scenarios when buying from a developer?
Acquiring a property from a developer in Georgia presents two major options:
Buying an Existing Property:
This scenario offers a straightforward process where you can personally view the housing and assess its condition before making a purchase decision. The transaction typically involves a direct sale from the developer to the buyer through a purchase agreement. Seeking legal advice to review the agreement and ensure compliance with Georgian laws is highly advisable.
Buying Off-Plan:
This option involves purchasing a property that is either yet to be built or currently under construction, commonly known as “off-plan” purchasing. This method is gaining popularity due to the increasing demand for modern residential developments. Within off-plan purchases, there are two primary situations:
- Project not yet commenced: The development exists only as a proposed plan.
- Project under construction: Construction has begun, but the property is not yet finished.
Regardless of the construction stage, off-plan purchases require a pre-purchase agreement outlining the obligations of both the buyer and the developer. This agreement typically includes:
- Completion deadline: The timeframe within which the developer commits to finishing the construction.
- Delivery specifications: Details regarding the condition and features of the property upon completion.
- Construction timeline: A schedule outlining the completion of various construction stages.
- Payment schedule: This includes the initial deposit that serves as a guarantee of the buyer’s commitment.
Buying from an Individual:
When purchasing homes for sale in Georgia from an individual owner, it’s essential to conduct a thorough background check on the property through a process called due diligence. This involves:
- Legal professionals investigating the property’s history to identify any potential issues that could negatively impact the new owner.
- Reviewing relevant documents and records with competent authorities to ensure a clear title and absence of any encumbrances.
