The real estate market in Georgia is actively developing and transforming. The stabilization of the political situation in the country and the attraction of large international investments create favorable conditions for the development of the construction industry and increase the investment attractiveness of Georgian real estate.

Oleg Khoroshev, Head of Sales at GulfStream, talks about the current state of the market, promising areas for investment, and industry development forecasts. In the interview, the expert analyzes key trends for 2025, shares practical advice on choosing real estate in various regions of Georgia, and reveals the specifics of working with foreign investors on the local market.

Contents:

  1. General Market Dynamics and the Most Promising Locations for Investment
  2. Georgian Real Estate Prices and Real Profitability
  3. Investment attractiveness for foreigners
  4. Georgian rental market and forecasts for the coming years

General Market Dynamics and the Most Promising Locations for Investment

— How do you assess the dynamics of the Georgian real estate market at the beginning of 2025? What are the key changes compared to last year?

— In late 2024 and early 2025, several events occurred that significantly affected the growth of investment attractiveness of real estate in Batumi and Georgia as a whole. The stabilization of the political situation in Georgia played a significant role in this, but the main trigger was the signing of a memorandum on investment of $6 billion (including the construction of an entire district in Batumi) between the government of Georgia, Adjara, and the largest developer of the UAE, the EMAAR Group. These factors stabilized the demand for investment and residential real estate. According to subjective estimates, real estate in Batumi in the 1st-2nd quarter of 2025 increased by 5%.

— What areas of Batumi are considered the most promising for buying real estate today? Maybe there are other regions that are also gaining popularity?

— Today, the most promising areas for buying real estate in Batumi remain Zhiuli Shartava Avenue, known as the “Alley of Heroes”, a traditionally historical part of the city, and the New Boulevard is also gaining popularity — new buildings in the area of the new, modern Lech and Maria Kaczynski Park. Among the elite new buildings, one can note the growing sales on the “Batumi Island” — the territory of the artificial island, an analogue of the Dubai islands.

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Georgian Real Estate Prices and Real Profitability

— Is the trend of rising real estate prices in Georgia continuing? Let’s give examples of prices in different cities for apartments.

— In Batumi, as in other regions of Georgia, the steady growth of real estate prices continues. It has slowed down somewhat due to a sharp jump in 2021–2022, but last year and in the first half of this year, price growth leveled off and is about 7–8%.

— How realistic is a 10-15% annual return on the real estate market today? Which segments bring in such income?

— The yield of some categories of real estate on the Georgian market is indeed 10-12% per annum. Such categories primarily include apartments in hotel complexes managed by world leaders in the hotel business.

Investment attractiveness for foreigners

— What factors will influence the demand for real estate among foreign investors in 2025?

— In 2025, the stable demand for real estate in Georgia is primarily influenced by the stabilization of the political situation, investment attractiveness, confirmed by real contracts with the largest global players in this area (see Question 1).

— How common are cases of unscrupulous developers, and how can you protect yourself from such risks?

— Unfortunately, in Georgia, as in any other country, with the rapid growth of construction (which, accordingly, increases the number of developers present on the market), it is impossible to avoid the risks of purchasing properties from an unscrupulous developer — especially in the early stages of construction. The easiest way to minimize these risks is to contact professionals, specialists in the field of the local market, i.e., real estate agencies with many years of history and experience. Such agencies regularly monitor the situation on the market, know the history of each property and developer, and will help you choose the best option. It is extremely difficult to understand the twists and turns of the local market on your own in a short time.

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— What are the legal requirements and restrictions for foreign buyers of real estate in Georgia?

— Georgian legislation is very loyal and democratic to foreign citizens who decide to purchase real estate in this country. There are no restrictions or prohibitions on purchasing apartments or flats. The only restriction concerns agricultural land plots.

— What are the property tax considerations for owners and tenants?

— Taxation of real estate in Georgia is extremely simplified. There is no tax on the purchase of real estate. The tax on the ownership of real estate varies from 0.05% to 1% depending on the market value and is paid once a year. When selling property, if it has been owned for less than 2 years, a profit tax is provided, which is calculated from the difference between the purchase and sale price and is 5% for residential real estate and 20% for commercial real estate.

— How fast can you sell real estate in Georgia today? What factors affect the liquidity of properties?

— The speed of exposure (sale) of real estate properties today is primarily influenced by a balanced price and location. Then, high-quality repairs and equipment are required in the case of a finished apartment, the view from the apartment, the presence of a full set of utilities, the condition of the adjacent territory, and the presence of parking. In the case of the optimal availability of the specified characteristics, the sale period is from 1 week to 2 months.

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Georgian rental market and forecasts for the coming years

— How developed is the rental market in Georgia, and which cities or areas are the most attractive for renting out property?

— The flow of tourists from almost all over the world to Georgia is steadily growing. Georgia is very diverse and interesting with its landscapes, history, culture, cuisine, and identity. This makes almost all regions of the country attractive to tourists. However, there are locations that are most attractive in terms of the rental business. These are Batumi, Tbilisi, the capital of Svaneti-Mestia, and the ski resorts of Gudauri, Bakuriani, and Goderdzi. 

— What types of real estate (apartments, houses, land) are in greatest demand among renters and buyers?

— The most popular real estate clusters in the “residential real estate” category are apartments in modern residential complexes with high-quality repairs, and in the “investment real estate” category are small studio and 1 + 1 apartments in complexes with developed infrastructure on the first line with good views. Recently, small houses with non-agricultural land plots have been in great demand both in the coastal and mountainous parts of Georgia.

— What are your forecasts for the development of the Georgian real estate market in the next 3–5 years?

— As for the forecasts for the coming years, we can confidently say that the Georgian real estate market will show steady growth and further development. The potential of this country is truly inexhaustible. Our opinion is confirmed by analysts of the world’s largest developers who are willing to invest in Georgia. Another confirmation of our conclusion is the rapid construction of five-star hotels of the world’s leading hotel chains: Wyndham, Marriott, Hilton.