Georgia is attracting more and more investors to invest in real estate

The Georgian real estate sector has been showing steady growth in the last couple of years. In Tbilisi, about 200 development projects with 11,160 apartments were completed in 2017, which is a record figure for the market. Currently, there are about 525 projects underway in the city. Most of them – about 66% – are positioned in the economy class, almost a third, namely 28% in the mid-price segment and about 5% in the premium class. In Batumi, 35 residential projects with 6,425 apartments were completed last year, and currently, a total of 22,750 apartments are under construction.

The number of apartments sold in Tbilisi in 2017 reached 28,000, which is 21% more than in 2016. And in the first quarter of this year, compared to the same period in 2017, housing sales in this city increased by 37%.

The attractiveness of Georgia's hotel segment is, of course, due to the growing number of tourists. In 2017, the country was visited by 7.6 million foreign guests, compared to 6.4 million in 2016. According to forecasts, the number of tourists will show growth of 8-10% in the coming years.

Over the past year, the number of real estate purchase and sale transactions has increased significantly in Georgia, for example, in Tbilisi by 21%, in Batumi by 41%. Not only traditional apartments in residential buildings are popular, but also real estate in apart-hotels. Developers actively promote such offers among investors. Such a purchase provides passive income, because the apartments can be rented out to tourists, the number of which is constantly increasing. The payback period for such investments is from 5 to 7 years.