For what advantages do investors choose the Georgian market?

Georgia is rapidly consolidating its position in the global investment market. Low property costs, high yields and loyal legislation make the country attractive to foreign investors. 

Low property costs, high yields and loyal legislation make the country attractive to foreign investors. 

Let's take a closer look at the main advantages of the Georgian property market. 

Loyal tax system

Georgia is famous for its low taxes. 

• There is no tax on the purchase of property. When buying a home, you pay only the cost of the object and the registration fee, 
• There is a flat tax rate of 5% on rental income from residential property, and 20% for commercial property, 
• Property tax is calculated based on the market value of the property. The rate varies from 0.05% to 1% depending on a number of factors: the type of property (residential or commercial); the value of the property; the level of income of the owner.

The main advantage of Georgian taxation is that it does not require complex accounting. Income is simply declared and taxed at the specified rate, eliminating the need for complex calculations.

Ease of buying property

One of the key factors of Georgia's attractiveness for foreign investors is the simplicity of property transactions. Any foreign citizen can purchase a property without the need to register a company or obtain residency status. Transactions are transparent and ownership can be formalised in one day. 

• Registration for 1 working day - about 357 GEL (about 127 $ );
• Registration in 4 working days - about 157 GEL (about $55).

These fees are fixed and do not depend on the value of the property purchased.

Growing tourist property market

Georgia is one of the most popular tourist destinations in Europe and Asia. Every year the flow of tourists increases, which increases the demand for rental properties: from short-term to long-term. For investors, this means stable income from renting out tourist accommodation, be it townhouses in Tbilisi or apartments by the sea in Batumi.

The prospects of the market are emphasised by its awards - for example, Batumi has won the Oscar of the World Travel Awards in the category ‘Leading All-Season Destination’ for the second year in a row.

Young investment market 

The property market in Georgia is in a phase of active growth. This opens up opportunities for investors, as prices are still at a competitive level. Unlike countries with a more mature market, such as the UAE, the growth dynamics in Georgia is ahead of many major global markets. For comparison: Last year a sqm in Batumi cost from $850, this year its price has risen to $1000-1100/sqm.

High yields 

Property prices in Georgia are relatively low (from $35,000), while average rental yields can reach 8-12% per annum. Such profitability, especially compared to Western Europe, makes the Georgian property market attractive for those who want to earn passive income from renting. 

Yields on resale strategies can range from 30% to 100% or more. 

Flexible purchase terms

Property in new buildings can be purchased in instalments from the developer. There are now more and more offers with 0% down payment, and the final large payment can sometimes be converted into a mortgage, which makes the purchase even more affordable. 

Mortgages of up to 10 years are also available for foreign buyers. 

Stable economy

Georgia's economy is showing stable growth. For example:  

• The country's GDP grew by 10.1% in 2022, which was one of the highest in Europe and the region.  
• The national currency, the lari (GEL), remains stable, providing additional certainty for investors.
• Direct investment in the country's real estate in 2024 increased by 70% year-on-year, from $39.3 million to $66.5 million. 
• In the first 11 months of 2023, 36,283 flats were sold in Tbilisi, which is 12% more than in the same period of 2021.
• The average sale price of new buildings in 2024 increased by 8% in the suburbs and 3% in the city centre compared to the same period in 2023. Prices of older flats have also risen, up 10% in the suburbs and 7% in the centre.

Infrastructure development 

In large cities such as Batumi and Tbilisi, modern residential complexes with landscaped courtyards, recreational areas and all necessary commercial infrastructure are being actively developed. In addition, new ports, shops, coffee shops and restaurants continue to open, including those created by re-locants, and modern technologies (high-speed motorways, etc.) are being actively added to the city's infrastructure. All this improves the quality of life and makes cities attractive for investment.

Possibility to get a residence permit

Acquisition of property in Georgia worth $100,000 or more opens up the right to obtain a residence permit. 

Attraction of global brands

Large international chains such as Radisson, Wyndham, Hyatt are increasingly investing in the Georgian property market, building their hotels here. This is another clear sign of a promising market, as such companies scrupulously assess the attractiveness of the location before investing.

Georgia offers foreign investors a unique combination of advantages: stable rental income, simplified procedures and a growing property market. With low taxes, minimal barriers for foreigners and promising earning opportunities, this country remains one of the best for those planning to invest in property.