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Good Deals in Georgia: Tbilisi Real Estate

Written By: Jacquelyn Annete García Vadnais

A Brief History of Georgia

Historically speaking, Georgia has always been in a unique position in the world due to its location of being in the middle of major empires and powerful countries throughout history. Georgia has been the subject of conflict between Turkey, Persia, and Russia prior to the 19th century. Georgia was then annexed by Russia in the 19th century and became a part of the Soviet Union. Georgia was a part of the Soviet Union until it eventually became an independent state in 1991.

Additionally, Georgia has a long history of religious harmony between the majority Eastern Orthodox Christian denomination and the Muslim community, which comprises the second largest religious community of Georgia. This along with the peaceful co-existence of several other religious minority groups, adds much to the history, culture, architecture of the nation.

Finally, due to Georgia’s diverse history, it has a sensational mixture of cuisine and culture that is very appealing to locals and tourists alike. In fact, Georgia’s unique history has brought a great deal of tourism to their country, which is a great benefit to foreign direct investors.

However, it is important to note, that as Georgia makes attempts to increase economic relationships with western Europe, with overtures towards the EU and NATO, tensions between these nations and Russia continue to simmer. Look for these conflicts to improve over time as the young nation of Georgia continues to stabilize itself in the political environment of the region.

Factors Investors Should Consider When Investing in Tbilisi, Georgia

Tbilisi, Georgia has a very appealing investment market that is relatively untouched in comparison to popular hotspots for foreign real estate investors. Consider the factors below about why Tbilisi, Georgia should be on one’s prospective list of ideal real estate investment destinations:

Affordable Standard of Living

Tbilisi is one of the most affordable capital cities in the world. For example, furnished apartments in the city can be priced for under $30,000 USD. This is a great market for a fresh real estate investor to start in that is looking to make great income from their investment while simultaneously enjoying a modern city with a very affordable standard of living.

Lack of Competition for Tourist Lodging

Georgia is becoming popular for tourists daily; however, many of the apartments offered on sites such as Airbnb are designed in traditional Georgian style, which may not be appealing to the vast majority of tourists. For this reason, this is a potential for a real estate investor who wants to make additional income off of renting their apartment out the ability to make a generous profit renting to tourists visiting Georgia.

Fantastic Rental Yields

Since properties are quite undervalued in Georgia, the market has great potential for those that decide to invest in property there. Rental yields typically fluctuate between 5% - 6% respectively. That said, rental yields should continue to increase due to how quickly the economy is surging in the post-Cold War era.

Lack of Barriers to Foreign Investors

Unlike many other appealing markets, Georgia does not have a great deal of red tape precluding foreign investors to both establish corporate entities or invest in real estate. This is what makes the market quite simple to invest in for those that choose to do so.

No Property Taxes

One incredible benefit of investing in Georgia is that there are no property taxes as of yet. This is an incredible incentive for foreign direct investment that is seldom found in other markets around the globe.

Ease of Visas & Permanent Residency

In terms of immigration issues, Georgia is quite lenient on visas. What makes Georgia another fantastic strategic choice is how they permit Permanent Residency for only investing in $35,000 USD in real estate or above. This is substantially lower than other markets, particularly with close proximity to the European Union. For investors that don’t have a great deal of capital, but would still like the opportunity to live abroad, this is a great first step to consider for foreign real estate investment.

Final Remarks on Investment Outlook for Foreign Investment in the Coming Years

Georgia is absolutely a market to watch. Georgia does have some conflicts with neighboring Russia over their territory of Abkhazia and South Ossetia. Georgia’s government is very interested in European Union and NATO membership, which does anger Russia. For this reason, Georgia is looking to head West to form new alliances. As Georgia heads West, it will continue to be appealing to foreign direct investors, particularly if Georgia does end up entering the European Union. This will be excellent for cross-border training along with real estate prices. The tourism boom in Georgia is a fantastic investment opportunity for foreign direct investors that would like to rent out their properties to tourists year-round. Furthermore, in the coming years, Georgia’s property values are positioned to rise due to how low they are currently. Some skeptics indicate that there could be too much competition in the real estate market in Georgia due to a wide variety of construction projects for luxury condominiums that could thwart rental yields for foreign direct real estate investors. Even so, cities such as Tbilisi are excellent choices for foreign direct investment as Georgia’s economy continues to grow and the potential business from multinational firms that will occur in the city. It will be fascinating to see how Georgia’s economy progresses in the years to come considering how it has done so much since its recent independence in 1991.


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Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.

Jacquelyn has a JD/MBA from Suffolk University, and LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.

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