The real estate market in Georgia has been gradually growing throughout the previous years and has attracted many investors attention as well as homebuyers, this bring up the question of is it good to buy property in Georgia? stay with us in this blog to learn more property investments in Georgia and official statistics about them.
Should YOU invest in real estate in Georgia or not?
According to Geostat which is a government official source the property market index has been experiencing a steady growth since corona outbreak, on the first quarter of 2020 which was the beginning of the outbreak, the property market has dropped by 3.7% but by the fourth quarter of 2020 it has recovered and got 7.2% price index increase, after this event the price has steadily increased and currently the property market price is up by 48.1% compared to the 2020 average. Based on this state should you invest in real estate in Georgia or not depends on you, but Georgian property market has proven itself to be a stable and growing type so its best to keep this feature of this country in mind.
Reasons to buy a real estate in Tbilisi
There are many reasons to buy a real estate in Tbilisi, stable economy, great weather, highly secure city, strong infrastructure and good relations with neighboring countries. Tbilisi accommodates more than a third of the entire country’s population, and for this reason its property market is very active. Tbilisi is known as Georgia’s business center, this city also has many tourism attractions which further adds to its features, not to mention Tbilisi has experienced only 1% inflation since last year and the prices are very stable throughout the year.
When to buy a property in Georgia?
According to Geostat, residential property price index since 2020 has been increasing steadily, however, there is a time frame which has repeated itself during multiple years, on the first quarter of each year the prices are lower than their respective fourth quarter of the same year, for instance, during 2020 q1 the property prices were down by 3.7% but by the fourth quarter of 2020 the prices were 10.9% up, similar case has repeated itself during 2022, 2023 and 2024,so the best time to buy property in Georgia is on the first three months of the year or the second quarter if you have missed the first one since the prices gradually increase, when to buy a property in Georgia is up to you.
What to know before buying a real estate in Georgia?
Here are some regulations and laws which can be useful to know for someone who is buying property in Georgia for the first time, Georgia does not have tax regulations on holding property or property maintenance. If you are planning to sell your newly purchased property and if its sooner than 2 years from your initial purchase, you will need to pay 5% tax on the amount which you have profited from selling this house and if its more than 2 years since you bought your house, then there will be no tax. There are also some properties which have been constructed but inside its document it’s still declared as “under construction” which shows that the builder of the house has not fully did all the process with the government and its best to avoid such properties. Here was what to know before buying a real estate in Georgia which can help you significantly during the process.
Benefits of buying a property in Georgia
Other than many benefits which we have already mentioned about the country, there are also other major benefits on buying a property in Georgia, such as, being able to apply for short term residential permit with the property you have purchased if it meets the eligibility requirements of the government which is the value(s) of the property(s) the applicant must reach at least $100,000 to be able to apply for this permit, this short permit needs to be renewed every year and to successfully renew it you will need to maintain the value of the property(s) which a government official appraiser needs to visit your property and confirm the estimated value of the house.
Disadvantages of Buying Property in Georgia
There are rarely disadvantages of buying property in Georgia especially with all the benefits which we already mentioned, but here is some of the examples which needs to be addressed.
- In Georgia the balcony area of the property and its dimensions counts as the total property size, so be aware of this fact when looking for a property with a specific area size in mind.
- Another disadvantage is the fact that there are rarely any good real estate broker and many of them will try to take advantage of new homebuyers so the best course of action it to take each step carefully when looking for a property in Georgia.
Conclusion
Overall, Georgia is a great destination for investors as well as homebuyers thanks to its major benefits and features that contribute to the convenient living experience of this beautiful country, we hope that we have managed to answer the infamous question of whether is it good to buy property in Georgia or not.
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