There are many benefits of investing in real estate, such as passive income, stable cash flow, a low-risk venture and so on. And it’s safe to say that in Tbilisi, capital city of Georgia, the rental market is thriving. According to the TBC Capital data, in July 2023 the average sale price for residential real estate in Tbilisi was 1,164 $/SQM, while annual growth amounted to 22%. Market size grew by 18% in annual terms and it currently stands at $255 million. Not only that, but since March 2022, after the Russian invasion in Ukraine, there has been a considerable influx of interest in Tbilisi rental properties. In the first few weeks after the war started, Georgian real estate rental platforms witnessed a spike in searches from Ukraine, Russia and Belarus, but the demand is still high a year and a half later.
Besides the high demand from neighboring countries’ residents, it’s also recognized that Tbilisi is one of the most attractive tourist destinations. According to the National Statistics Office of Georgia, just in the II quarter of 2023, the number of international travelers in the territory of Georgia equaled 1.7 million, which is 57.4 percent higher compared to the data from the same period of 2022.
Rapid growth of Tbilisi real estate market and Georgian tourism in the last 5 years convinced SWEFLAND Group to be more involved in Georgian real estate market development and started building and selling major multifunctional complexes in various parts of Georgia.
Nanuka Alavidze, head of PR and Marketing department of SWEFLAND Group talks about 7 reasons of why you should consider Tbilisi as one of the best places to invest in real estate:
1 – Direct flights from several countries around the world also increase the number of visitors from European and Gulf countries – most members of the HORECA sector name direct flights as one of the main reasons for growing tourism.
2 – Georgia is N7 among the countries in Europe and Central Asia on ease of doing business – says the recent report of the World Bank. This means that in Georgia, it’s far easier to get construction permits, register property and get credit.
3 – Located at the crossroads of Europe and Asia and being the shortest transportation route between the two regions, Georgia is uniquely positioned to capitalize on increasing trade flows between Europe, the Caspian region, Central Asia and East Asia. For centuries, Georgia’s location along the Silk Road has provided an undeniable economic advantage and growth.
4 – Tbilisi always stays in the list of safest cities in the world and is currently in 29th place by safety index 2023. Tbilisi has low risks of overall danger, pickpocketing, mugging, terrorism and scamming.
5 – In 2022 Gross Domestic Product (GDP) increased by 10.1% compared to the previous year and reached 71.7 Billion GEL at current prices – says Geostat.
6 – In July 2023 the asking price for rent increased by 48% in annual terms and stood at 13.1 $/SQM, according to the report of TBC Capital.
7 – For people seeking higher levels of education and joining international companies or collecting experiences with foreign investors, Georgia has an increasing number of facilities in Tbilisi for all the citizens and non-citizens to achieve just that.
The trend of the growing real estate market in Tbilisi is ongoing. As the demand rises, rent prices adjust accordingly which gives realtors and landlords an opportunity to grow their business and maintain stable passive income.
SWEFLAND group is a leading investment and real estate developer company in Georgia, which mainly focuses on the Middle East, North Africa Region, Europe and Gulf area countries, as well as US and Canada.