Georgia has lifted almost all pandemic restrictions, and a flood of tourists immediately poured in. This is a great opportunity to take a closer look at the real estate of Batumi – the main resort of Georgia. The most profitable time to buy an apartment has come.
The autonomous republic of Adjara is the western region of Georgia. In the last few years, it has gone through major changes. Batumi is one of the most popular Georgian cities with urban architecture, developed infrastructure, beaches, mountains, warm climate, and breathtaking landscapes of the Black Sea shore.
The real estate market is blooming too. Lots of new residential complexes and resorts appear in the city and suburbs. The reason is the tourist and investment flow to Georgia.
The hospitality sector is one of the majors in the economy of Batumi. The coastal region has become a popular destination for famous hotel chains like Radisson, Marriott, Le Meridien, Sheraton, etc.
Five Reasons to Invest in Batumi Right Now
Number 1. Stable economic climate
The country has a pretty stable environment in terms of protecting the investments made into the country. There is a specific legal framework: Georgian legislation protects investors by law.
Another reason is Batumi itself. It is the second most visited place in the country after Tbilisi. The city is developing at a fast pace.
Number 2. Cheap real estate
New apartments by the sea (even with the sea view) cost about $400 per square meter on average. It is low in comparison to most of the European countries. If you plan to reside in Batumi, you can start with renting a place, which is also a very affordable option.
Number 3. The soft property tax law
A huge advantage is a 0% ownership tax. Not every country offers such favorable conditions for property buyers. Different regulations apply if you want to sell property in less than 2 years of ownership. In that case you need to pay 20% of tax. the property within the first 2 years of ownership — you should pay the state 20%.
Another positive thing is that you can register ownership in a matter of minutes. Foreign buyers and investors don’t have any restrictions on buying apartments, houses, or other types of properties in Batumi and Georgian real estate market in general. The only exceptions are agricultural lands.
Number 4. Path to the residency permit
You can get a Georgian residence permit for buying any property in any region of Georgia for $100,000 or more, including Batumi.
Number 5. Geographic location
Batumi is almost in between Europe and Asia. The border with Turkey allows the economy of the city to develop faster. An international airport is another highway to international transactions.
Why the Batumi Market Has Become So Attractive
The Batumi real estate market is truly international. In 2015 foreigners were participating in 14% of transactions, but in 2018 – already 36%. Global demand provides real estate liquidity, stimulates regional development, and brings income to apartment owners.
The Side Effects of Property Investment in Batumi
The property sector in Batumi is heavily dependent on tourism. During the pandemic, the Batumi real estate market sank as expected. The number of transactions has collapsed – by 30-40%. Prices have only slightly adjusted: in dollars, a square meter has fallen by 7.6%, and in Georgian Lari, it has risen by 4.3%. Now apartment prices are at the level of 2019 again.
In terms of commercial real estate, the market is oversupplied. Batumi already has lots of finished hotel projects, while others are on their way. Starting a new development is extremely hard in such a competitive market, especially knowing the property prices. You need to understand that Batumi is much better for low-budget investments.
Finally, an unfortunate point. Georgia lacks trustworthy real estate agents and property management companies. That is the reason why a majority of buyers prefer to work with Georgians they’ve known before.
Although the disadvantages seem serious at first, there are only a few of them, not to mention that before putting your money anywhere, you must study the market. It is a simple idea that can protect your capital and help you to gain more in such a prospective region as Batumi.
About the Future of Batumi
- Tourism has recovered. The number of foreign visitors in the Black Sea region of Adjara exceeded the results of 2019 by 51% in the first quarter of 2022. In June, Batumi Airport received 300 international flights from 20+ airlines from 12 countries. New direct flights have opened from Latvia, Jordan, and Uzbekistan.
- Investments are growing. Foreigners invested four times more funds in the Georgian economy in the first quarter of 2022 than a year before. The main investors are from Spain, the UK, and Turkey. The key sectors are energy, finance, and real estate.
- Favorable forecasts. The World Bank believes that Georgia’s economy will grow by 5.5% in 2022 and 2023, and the trend will continue with 5% more in 2024. All despite the economic shock caused by the conflict between Russia and Ukraine.
- Growing prices. A surge in rental prices in Georgia, and the cost per square meter in Batumi is still at the same level. Therefore, buying an apartment now seems very promising, especially with ready-made apartments in completed complexes, where you can avoid any construction risks.
How to Become a Property Owner in Batumi
There are no restrictions for citizens of other countries, whether you want to buy an apartment or invest in a hotel project. You can register real estate even as a legal entity and transfer funds to Batumi from the company’s account. To make a transaction you only need a passport.
All the formalities will take no more than two hours. After signing the contract with the developer, the new owner goes to the House of Justice, where their name is entered into the state register of real estate. You have to pay the fee for the registration of ownership of $15.
Buyers can carry out the transaction remotely by paying by bank transfer. They receive all the documents and receipts from the developer in electronic form.
- Tourism and real estate play a key role in the region’s economic growth. The real estate sector is heavily dependent on tourism.
- No restrictions on property ownership for foreigners and no property tax for buyers.
- Becoming a property owner takes a few minutes.
- Batumi is rather a low-budget investment than a high-budget one.
- You can own property as a legal entity.
- You can get a residence permit for owning property in Batumi.
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