Georgia's real estate market is experiencing a boom driven by foreign investor activity. According to market professionals, this interest is due to unprecedented investment returns in the residential sector, which attracts capital from other business areas and international markets.
Pre-sale stage as a key opportunity
As noted by Nino Absandze, founder of Georgian Real Estate Association, pre-sale apartments attract the most interest from foreign investors. It is during this period that prices are at their minimum level, allowing one to purchase housing under the most favorable conditions. After construction completion and transition of properties to finished housing status, the cost increases significantly, generating profit for early investors.
The attractiveness of returns
The key factor explaining the massive inflow of foreign capital is the level of investment returns. Investments in pre-sale housing in Georgia provide returns at the level of 25-30%, which is qualitatively different from the average profitability level in other sectors of the economy. For comparison, in alternative business directions, average returns remain at the level of 7-8%. Thus, investments in Georgian housing offer several times higher profit margins.
Mass bulk purchases
The attractiveness of investments is evident in the scale of transactions. Investors purchase housing in large batches, executing purchases of 30-50 properties in a single transaction. This approach reduces management costs and accelerates the implementation of the investment strategy.
Growth in sales in Tbilisi
Statistics confirm the intensity of the process. According to Colliers Georgia, in June alone of the current year, 4,484 apartments were sold on the Tbilisi market. This figure exceeds by 34.7% the sales volume for the corresponding period of the previous year, demonstrating sustained and dynamic growth in market activity.
Thus, Georgia's real estate market demonstrates a consistent trend in attracting foreign investment capital, supported by high returns, favorable prices at the pre-sale stage, and growing transaction volumes.