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Georgian Real-Estate Guide

Where to invest in Georgia


Written by Emil Goncharov

Georgia, a developing market bordering Russia, Turkey, Armenia, and Azerbaijan, offers tremendous growth potential with government support for both domestic and foreign investments in order to promote development and prosperity in the country. While Georgia's population is about 4.5 million, almost half of the country lives and works in the capital Tbilisi which is the economic, political, cultural, and consumer center of the country.

When looking at the local residential real estate market in Georgia, there are about 4-5 cities/towns worth investing in. The main city we would recommend you to focus on is Tbilisi is you are talking about long term rent for locals. If you are all about short term rent for tourists there are other investment options such as Batumi, Gudauri, Kutaisi, and more, while Tbilisi is still the best place to invest in real estate as most tourists exploring the country tend to visit it. 

There are different types of properties to invest in so you should first decide on your strategy and budget to focus your efforts. You have to start wide during your market research by choosing the city/town you are interested in and drill down to find the right neighborhood for your investment and only then, choose the right type of property for your first real estate investment in Georgia before you try to locate it using a local real estate agent or the internet (many properties doesn't list online).

While considering where to invest in Georgia, the following parameters must be considered:

  • Seasonality - Search for the least seasonal location

  • Supply - The number of properties for sale/rent in the area

  • Demand - The amount of properties purchase transactions

  • Target Audience - Who lives in the area

  • Positive migration

  • Points of interest and attractions - if aimed at short-term rent

  • Purchase prices versus rental prices - examination of yield

  • Local requirements - for a particular area or city

Georgian real estate guide | Where to invest in Georgia


Before we start talking about any other city, Tbilisi is the most recommended city for real estate investments in Georgia! Prices around Tbilisi city center are still significantly lower than any European capital so you can even find properties in great locations starting at $1200 per meter. Most foreign investors focus on Tbilisi due to high demand, limited supply (mainly downtown and in attractive neighborhoods as there is a decrease in the number of new construction projects in light of new safety requirements which will lead to price hike in the next 3-5 years) and mainly because it is the least seasonal city in Georgia. Tbilisi is made out of several neighborhoods, each suitable for a different type of investment and aimed at a different target audience. Tbilisi is probably the best city to buy a property in Georgia as most of the country's population located in it and about 75% of tourists visit the city. For in-depth details about Tbilisi neighborhoods to understand where to invest in it - click here.

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Batumi is the second-largest city after Tbilisi which recently surpassed Kutaisi in terms of population size. The city is located on the shores of the Black Sea in the western end of the country and offers tourists thriving summer attractions during the sunny season. Batumi went over a massive construction in the last decade and today offers investors a wide range of real estate investment opportunities in different areas of the city (the most expansive properties in Batumi are usually located on the seafront). 99% of foreign investments in the city are aimed at renting an apartment for tourists. Some of the apartments located inside hotels and even managed by them. We estimate that the intensive construction in recent years (with tens of thousands of new apartments being build) has led to severe competition between apartment owners that want to sell or rent the apartment. The competition also provides low yields for short term rental. Keep in mind that Batumi is focused on tourists during the summer only. As most projects offer investors small units so you can rent them for tourists, they usually not suitable for locals. We would advise you to think again and consider all aspects before investing in Batumi real estate market.



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Godauri is a winter resort (small town) located about 1.5 hours north of Tbilisi. The main attraction in Gudauri is the largest ski resort in the country which continues to develop and attract tourists thanks to internal and external investments. In general, people who invest in Gudauri are looking to rent their property for tourists during the winter as most properties remain mostly empty during the summer. As you understand, there is a seasonality problem because most of the activity in the area takes place in the winter, usually between January and April, while the rest of the year is expected to have low occupancy. The best properties are those that are close to the ski lifts so you should look for new projects that are being built next to the ski area. At this stage, the options are quite limited in terms of supply so you can expect the value to increase in the medium to long term. In addition, brand hotels are planned to be built in the area (such as Raddison).



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Bakuriani, like Godauri, offers winter resort that attracts domestic and foreign tourism during the winter between December and April. This is the second biggest ski resort in Georgia after Gudauri. The town is located about two and a half hours drive west from Tbilisi and a short distance from the town of Borjomi. The Bakuriani ski resort offers a variety of other activities (besides ski) such as horse riding, ice skating, children’s park and snowmobiles. Anyone thinking of investing in real estate in the area should take into account the issue of seasonality as tourist traffic in the area outside the winter is poor. You should focus your efforts on properties around the ski area.


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So.. what is the best place to invest in Georgia?

Considering all the variables that makes investing in real estate a good and profitable deal, along with Georgian market resrarches published by central banks in Georgia examining the local real estate market, the best and most lucrative investment potential located in the city of Tbilisi. At the same time, the Other cities/towns are in development as well and each case must be examined on its own merics. If you are thinking of investing in Georgia, you should consider only the cities mentioned above and not be tempted to buy in other places that may be cheaper, but less worth it in terms of potential and profitability.

Before we finish, there is one more city worth mentioning but not necessarily investing in. Still, this isone of the 3 biggest cities in Georgia in terms of population.


Kutaisi is the third-largest city in Georgia, located in the center of the country, about a two-hour drive west of Tbilisi. In recent years, many resources have been invested in the development of the city by the government, including a new parliament that moved to the city (currently the parliament was returned to Tbilisi), the new international airport in the city, and more. As uncertainty levels continue to grow when it comes to the city, buying a property in Kutaisi may lead to a big reward but there is a big risk too so you should be careful (especially if this is your first investment in Georgia. Tourists only visit the city for a short stay and at best, it serves as a transit station for a day or two. As for the residential market, the demand for properties in Kutaisi both by locals and investors isn't high as in other cities, but we would advise you to notice the city as future potential. That being said, apartment prices in the city are lower than in the other cities mentioned before and might provide bigger profits.


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Thinking of investing in Georgia and you need more info?

You contact by clicking this link or via email at to schedule a consultation meeting. We do not work with any local project or contractor in Georgia and therefore we do not target a specific city/project. We use all our experience and provide the right information according to the nature of the investment and investor requirements and help make the best decisions with minimum risk.


Thanks for your interest!

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