Recently, the number of people investing in Georgia real estate has increased. That is for the reason that the country has enacted several laws to attract foreign investors in various industries, including real estate and construction. Georgia offers three types of properties and therefore you will have a chance to choose what can maximize your returns. This guide will help you choose the best type of real estate and make money.
A Quick Look at Georgia
Georgia, also known as Sakartvelo, is an ancient civilization country situated on the southern flanks of the Greater Caucasus Mountains and the eastern shores of the Black Sea. It borders Russia in the northern and northeastern parts, Armenia and Turkey on the southern side, and Azerbaijan on the eastern and southeastern parts.
The country has a population of 1.7-1.8 million individuals. It became an independent country after the Russian Revolution of 1917. Later, it became part of the Soviet Union in 1922 but it regained its sovereignty after the collapse of the Soviet in 1991.
The country introduced several economic and democratic reforms in the 1990s, something that promoted fast growth of various industries, such as real estate. In 2019, the GDP stood at $46.05.
The tourism, minerals, and commerce sectors are not only the key economic drivers but they have a great impact on the real estate market. For instance, the local and foreign tourists have been touring this country and other neighboring countries to witness the major attractions and art collections from leading artists.
Types of Real Estate Properties in Georgia
If you are planning to buy a property, rent one, or invest in one, understanding the available types is important. Here are the three types of properties in the country.
- Residential Properties
This type of property is a top choice for many investors. It contains either multifamily or a single-family structure available for non-business purposes. Put differently, residential properties are a type of structure or buildings that people live in. You can buy an established unit or build one to start generating income.
- Commercial Properties
Commercial properties refer to land and buildings intended to generate revenue through rental income or capital gain. They include medical centers, office buildings, shopping centers, malls, hotels, bars, and restaurants. Therefore, investing in commercial property means buying a restaurant, shop, bar, or industrial facility.
When building an industrial facility, you will have to think about the business. Ensure that the property is closer to the important amenities like road network, water, and power. Internet connectivity is also important if you want to make money.
- Property for Development
This type of property requires you to buy undeveloped properties or partially developed ones and develop them. After that, you can resale them to make a profit. That means you will be adding value to properties and selling them to interested individuals to make money. Georgia is an emerging economy and therefore most sectors like tourism are opening up. That means there are many opportunities for property developers.
There are many types of properties in Georgia. You can choose to invest in residential properties, commercial properties, or properties for development. However, you will have to study the market to understand the forces affecting the demand and supply of real estate before investing your money.