If you have interest in the real estate, one of the top markets in Europe is Georgia. This country, perfectly tucked at the meeting point of Asia and Europe is one of the fastest developing tourism hubs and investors are noticing.
Its social and political stability have made it a beacon of peace in the region, transforming it into a magnet for real investors. You too should not be left behind. In this post, we will tell you the five most important things to thing about when investing in the Georgia’s property market.
The Location of the Property
When investing in the real estate industry, the adage “location, location, location” rules, and you should also follow it. The goal is ensuring you acquire property close to major amenities, scenic views, and green spaces, which guarantee progressive valuation.
The lovely thing about Georgia is that almost all areas are overflowing with potential. So, consider investing in properties close to tourist establishments, transport hubs, tax-exempts, markets, and warehouses.
The Purpose of the Investment
Even before committing your resources to investing in Georgian real estate, it is important to answer the big question, “What is the purpose of the investment?” For example, “Do you want to buy and sell later when the value goes up?” or “Develop the property and sell?”
Most people coming to Georgia opt to buy and sell, making quick profit from the fast growing demand for property in the region.
In major towns, such as Tbilisi, you might also want to buy property and develop rental houses. The population of the city has been growing steadily and reached 1.17 million in 2019, and is expected to continue growing in the coming decades. Therefore, you can develop houses for sale, rental, or both.
The Target Clients
Like other businesses, investing in real estate requires you to carefully understand the targeted clients. The lovely thing about Georgia is that there is a huge demand for properties, implying that you can target different clients.
For example, if you develop rental houses, they can provide you with a steady source of income from tenants.
Other people to target include property investors with interest in the Georgia, local house buyers, and industrial developers. For example, you might want to acquire property close to new industrial establishments and develop warehouses to lease to industrialists.
The real estate market follows a cyclic trend where the curve moves up and reaches a peak before starting a downtrend. The best time to invest in the Georgian market is when it has gone down and reached a trough. Because of the effects of COVID-19, the real estate market has been on a downtrend and this might be the best time to invest before the uptrend forms. Then, let your investment appreciate steadily and sell when it hits the peak.
How Much are You Planning to Put into the Investment?
One fact about investing in the real estate sector is that you need to have ample funds. For example, if you want to buy property and hold for five years before selling, it is important to have enough cash because it is going to tie the cash for the entire period.
Even if you want to develop the property, money will also be required to get it in the best shape or condition.
If you want to get returns from the investment fast, it might be a good idea to consider rental properties. You might also want to consider buying and selling within a short time.
Georgia is the new real estate paradise, and you should also take advantage of the rising demand. It is also becoming a center of culture and arts, with top artists, such as John Dodelande, who are committed to bringing communities together through art taking every opportunity to get the best that Georgia has. If you want to invest in Georgia’s real estate, this might be the best time!