Buy a property in Georgia
In recent years the number of people who want to invest in Georgian real estate is increasing and it has caused economic growth in this country.
Over the past few years, the country has enacted laws to better attract foreign capital to its various industries, including the construction and sale of Georgian real estate.
For more information on obtaining a residence permit in Georgia by purchasing a property in Georgia, read the latest rules for obtaining a residence permit in Georgia.
Benefits of buying a property in Georgia
The first advantage of buying a property in Georgia is getting a residence permit in this country!! The most important law that the government has made to increase Georgia’s real estate transactions is the law on residence for Georgian real estate buyers.
According to this law, anyone can obtain a one-year residency by purchasing a property worth more than $ 100,000, and then in case the applicant does not take any legal problems during his/her stay in Georgia, the applicant will be able to extend his residency.
Then after 5 years of extending the residency, the owner becomes a Georgian citizen who, in addition to receiving a Georgian passport, also acquires the right to vote in this country.
The buyer of the property does not have a travel restriction to receive a residence permit in Georgia.
It means when you buy a property and after getting your residency you don’t have to stay in Georgia for the following years you can travel and even you can rent your property whatever it is (commercial place, land, apartment,..)
In addition, residency is not only issued to the buyer of the property!! The buyer can also receive residency for him/herself, spouse, children, and even parents.
The second advantage that real estate buyers in Georgia will have is the dollar investment because as you know every year in many different countries due to the economic problems the rate of a dollar goes up!
When you invest in Georgia, you are basically making a dollar investment and you can do other things without worrying about falling or rising currency prices!
Another important point about Georgian real estate is inflation in this country. Most Asian countries have an inflation rate every year.
In a country like Georgia, it’s about 7 percent.
Also, The price of your property purchased in this country also increases.
The last advantage of buying Georgian real estate, and perhaps the most important one, the possibility of Georgia’s membership in the European Union.
You know very well that if this happens, it will have a positive effect on the rise in real estate prices as well as the economic boom.
Disadvantages of Buying Property in Georgia
First of all The average income of the Georgian people is not very high, so you should avoid buying very large and expensive properties.
It’s a good idea to start with a few small properties, even if you have enough capital to buy a big property.
Georgian banks offer low-interest loans to their citizens so they can easily afford to buy small houses by receiving this amount.
Try to buy your property in Tbilisi (the capital of Georgia) because Tbilisi is a tourist and crowded city and if there is a lack of funds turn to cities such as Batumi.
These offers are in a situation where you intend to sell the property in the future.
But if you want to choose a part of this country just to live and be away from the hustle and bustle, it is better to avoid buying a property in these two cities of Georgia.
Property prices in Georgia
Surely you know that there is no way to talk about the purchase price of a property in a single country and provide statistics.
But assuming that your intention is to buy property, invest, have fun, and obtaining the residency, here are the approximate prices of buying a property in Georgia.
All prices are based on US dollar:
A suitable flat with an approximate age of 1 to 5 (New building) costs $300 per each square meter.
The price goes up to $ 3,000 compared to the quality of home construction and other property purchase features, but there are also more expensive homes and properties in the city that belong to the Georgian aristocracy and the wealthy people.
There are also some houses that the price per square meter goes to $7,000 or $8,000
and they called them luxury properties and it is difficult to buy and to sell them.
That’s why it’s better to avoid buying them.
The average price per square meter of a suitable house in Tbilisi or Batumi is $1000.
If you are planning to buy a recreational villa in Georgia instead of a house, you should know that you can purchase this property at a lower price than real estate in the city.
The price of the simple villa with typical facilities in Tbilisi, Georgia (around the city) starts at $100 and continues up to $2000 per square meter.
But this price is different for luxury villas and it might go to $4000.
Investing in Georgian real estate
Georgian government seeks to attract foreign capital in various parts of the country. That’s why they made regulations as easy as possible to invest in Georgia!
One of the most important actions of the government in this regard is to exempt the applicants from buying property from paying any taxes.
In this process, the seller is responsible for paying all taxes. In practice, this law is helping to increase the desire for buying a property in Georgia.
The first rule for buying a property in Georgia is to have legal age. The legal age in this country is 18 years.
Actually this law can be considered as the only restriction on the purchase of property in this country because, in fact, no other law has been enacted for this purpose by government institutions and the laws of this country.
One of the things that will help to increase the desire of foreign buyers to buy property is that you do not need any Georgian partner or other partners to buy the property.
In most countries, foreign nationals must do the same with a citizen in order to be able to buy a property, and a foreign national can only register a limited percentage of the purchased property in his or her name.
This law always causes a lot of legal disputes, and most of the time, it is the foreign national who suffers.
According to the Constitution of Georgia, foreigners can register their property without the need for any Georgian partner or citizen to buy the property and register the purchased property in their name in a completely legal manner and with 100% ownership.
If you are planning to buy a property in Georgia, then you should be aware of the property installment purchase law.
According to this law, you can receive accommodation by paying $ 100,000 from an expensive property and paying the rest in installments.
This rule will help you to buy your favorite property even if your budget is not enough and also at the same time you can obtain your residency.
After all, you need to know that the registration of a document and other legal procedures for the purchase of property in Georgia is done in just a few hours.
Georgian real estate types
Before you make a serious decision to buy a property in Georgia, it is best to get acquainted with the types of properties defined in this country. Especially if you are looking to buy cheap property in Georgia, the following information can well meet your needs.
In general, real estate in Georgia is divided into 3 categories:
- Black frame apartment
- white frame apartment
- Green condition
What is the difference between the types of real estate in Georgia?!
1) Black frame:
Black frame Apartments refers to the incomplete apartment, which means the apartment has black walls, and only door and window.
2) White Frame:
This apartment is 1 level above the black frame, which means the flat has all the water, gas pipes, electricity, etc.
3) Green Condition:
In this case, the Apartment is almost ready and just needs some details to complete it, such as Wallpaper, Kitchen, Flooring, …
What kind of property should we buy in Georgia?
If you want our offer to invest in Georgian real estate, the first offer is to focus on buying land instead of buying a residential house or office and commercial property.
If you are a little familiar with the construction process and can do it yourself as an employer, you have certainly helped yourself a lot in reducing costs.
From the cost of purchasing equipment and raw materials to paying for construction forces, which ultimately eliminates many intermediaries.
But if you can’t afford to build a property on the land, the next offer is to buy a White Frame house. Turning a white frame apartment into a green condition property will significantly reduce your final costs of buying a ready-made green property.
In this article, we have tried to comprehensively guide you on the very important issue of investing in Georgian real estate, like:
- Advantages of buying a property in Georgia (increasing the value of your capital, receiving a residence permit, etc.)
- Disadvantages and important points of buying real estate in Georgia (not buying big and expensive real estate…)
- Relative costs to buy a property in Georgia.
- Existing rules of residence in Georgia by buying a property in Georgia.
- Types of properties in Georgia.
Finally, we tried to help you in choosing this type of property with a few small tips. We hope you found this article useful.