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5 Reasons to Invest in Georgia Real Estate in 2025

05/19/2025

The Georgian real estate market in 2025 is one of the fastest growing in the region. It continues to attract investors not only from the CIS countries, but also from Europe, the Middle East and Asia. The combination of stable growth, attractive profitability, tax loyalty and ease of registration makes Georgian real estate a truly interesting investment target.

Real estate in Georgia is a reliable and understandable investment tool. In 2025, the market continues to grow steadily, remaining a profitable alternative to European destinations. Foreign buyers appreciate loyal purchase conditions, high rental yields, rising prices and tax loyalty. Demand is growing both from investors and from people looking for a comfortable life by the Black Sea.

In this article, we will tell you about five key reasons why you should pay attention to real estate in Tbilisi, Batumi and other cities, as well as provide specific figures, facts and answers to popular questions.


1. Easy purchase of real estate for foreigners
In Georgia, buying an apartment or commercial real estate does not require a residence permit, local registration or entrepreneur status. This makes the country especially attractive for citizens of the EU, CIS, Israel, the Middle East and Asia.
Benefits for non-residents:
• Ownership is formalized within one business day.
• Transactions are conducted through the House of Justice — a single center for public services.
• Documents can be submitted remotely through a trusted person or consulate.
• Transparency of transactions is ensured by a single public register.
For buyers, this means a minimum of bureaucracy and a quick transition to receiving income from the property. There is also no requirement for knowledge of the language — all documentation can be translated, and many agencies work with English- and Russian-speaking clients.


2. Stable rental income — all year round
The rental market in Georgia is developing in parallel with the growth of tourism and migration flows. Tbilisi is the center of business activity, education and the IT sector. Batumi is a year-round resort and a magnet for tourists from neighboring countries.

Profitability potential in 2025:
• Batumi: up to 10-12% per annum for short-term rentals via Airbnb, Booking, and management companies.
• Tbilisi: 6-9% per annum for long-term rentals (especially in the Saburtalo, Vake, and Ortachala districts).
• Minimum maintenance costs: from 0.3 to 0.7 $/m² per month (in new residential complexes).
The rental market is growing due to:
• the growth of digital nomads,
• the relocation of IT specialists from other countries,
• the presence of international schools and universities,
• active domestic tourism.
Interesting fact: In 2024, the number of registered rental properties in Tbilisi increased by 17% compared to the previous year. At the same time, demand remains high, especially in the center and tourist areas.


3. Growth in the cost of objects — up to 30% during the construction cycle
The Georgian market continues to demonstrate a steady increase in prices. This is especially true for new buildings at the start: during the construction period (12-24 months), the cost of 1 m² can increase by 20-35%.
Reasons for the growth:
• Limited supply in coastal and central areas.
• Increase in prices for building materials and labor.
• Increase in demand from foreign buyers.
• Urban renovation and modernization of areas.
It is also worth noting the transition of developers to higher-quality projects: facades, energy-efficient technologies, landscaping. This increases both the attractiveness and the cost of objects.
Advice: buying at the «pit» stage remains the most profitable strategy, subject to careful verification of the developer and documentation.


4. Infrastructure development + preferential tax system
Georgia is actively working on transport connectivity, tourism and urban infrastructure. This maintains investment attractiveness at a high level. Development in 2024–2025:
• Reconstruction of the Kobuleti–Batumi highway with improved throughput.
• Expansion of Tbilisi and Batumi airports.
• Launch of new educational campuses, clinics, and business centers.
• Creation of pedestrian zones and reconstruction of historical quarters in Kutaisi and Telavi.
Taxes:
• 0% — capital gains tax (if sold after 2 years).
• 5% — rental income tax (fixed rate).
• 1% — turnover tax for individual entrepreneurs (instead of VAT and income tax).
• 0% — property tax (if the property is not used commercially).
Important: all reports and interaction with the tax office can be conducted online through a convenient portal.


5. Diversification and access to new investment formats
In addition to buying apartments for rent, other formats are becoming popular in Georgia in 2025:
Apart-hotels
Hotels in which individual rooms are sold to private investors. The management company rents out the rooms and pays the owner a profit — usually 7-10% per annum.
Pros:
• Complete passivity of the investor
• Transparent reports and contracts
• Often — bonuses (free accommodation up to 14 days a year)
Commercial real estate
Shops, cafes, offices, warehouses — especially in Tbilisi, Batumi, Poti.

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