With more than 350 new projects currently under construction in Tbilisi, a growing number of property investors is eying the real estate market in the capital of Georgia. With a wide variety of options, competitive prices, and increasing rental yields, what do you need to know about the real estate market in Tbilisi?
What are the latest real estate price trends in Tbilisi?
Real estate prices in Tbilisi have increased in spring 2022, with the minimum price per square meter increasing by 3.33% during this period. Prices went up from $840 in March to $868 in May, an increase of $28 per square meter. This is more or less the same trend visible in other popular places in Georgia, such as Batumi (+3.7%) and Rustavi (+3.38%), which is located not far from the capital. With an expected increase in demand for the next 3 months, it is likely that prices will continue to increase in the next quarter.
What are the most popular residential areas in Tbilisi?
When investing in the real estate market in the capital of Georgia, location is one of the first and most important factors when looking for Tbilisi apartments for sale. With infrastructure connections, shopping facilities, and leisure areas in mind, what are the 3 most popular areas in Tbilisi?
Varketili: Located around the metro station of the same name, this area is close to the airport, making it an ideal location for those that frequently fly in and out of the country. In recent years a high number of high-rise buildings have been built here and in 2022 the East Point shopping mall opened here, offering more than 150 retail outlets.
Didi Dighomi: Situated in the north-western part of the capital, this suburb is relatively far from the center which might increase the time of your daily commute. At the same time, this means that prices are more favorable than in the more central parts of the city. With the Tbilisi Mall within 5 minutes by car and a wide range of supermarkets and restaurants in the area, everything for your daily life is readily available.
Vake district: With Vake Park and Turtle Lake, this area is home to two of the largest recreation areas in Tbilisi. Add to that the pleasant mix of classic and modern architecture and it is clear why this area is in favor with many real estate investors.
Can foreigners buy property in Tbilisi?
Foreigners of all nationalities are able to purchase real estate on the territory of Georgia, including Tbilisi. Also, under certain conditions, it is possible to obtain a residence permit when purchasing real estate in Georgia. However, legislation is frequently changing, so always make sure you have the right legal assistance when purchasing a property with that idea in mind.
Can foreigners obtain a mortgage in Tbilisi?
Foreigners can obtain a mortgage in Tbilisi with one of the local banks. However, there are some strings attached. You will need the right residence permit as well as proof of income. Also, keep in mind that the interest rates in Georgia are much higher than in most western countries. Depending on the down payment (which is often at least 50% of the total sales prices) and the duration of the mortgage, interest rates are between 12 and 14%. When having the financial resources to pay for your property at once, this is a much more efficient investment.