Recently, Georgia has focused on the development of tourism, which gives good results. In 2018, 8.7 million foreigners visited the country for recreation and entertainment, which is 10% more than in 2017. The demand for hotel-type apartments has increased, so that foreign companies, including Russian, are actively investing in construction. Experts of the development company Alliance Group are divided, what is the advantage of buying real estate in Georgia and where it is better to acquire objects.
The analysis of the hotel market by the international agency Colliers International shows that since 2014, the number of apartments of this type in Tbilisi has increased by 44%, while in Batumi — by 109%.
The influx of tourists gave impetus to the development of investment real estate in the two main resorts of the country — Tbilisi, and Batumi. Here, the number of apart-hotels has doubled in just a few years.
The first apartments with hotel services in Georgia appeared in Batumi. High-rise buildings are located on the coastline and belong to the largest hotel networks. Buying real estate in Georgia in such complexes has several advantages. Here you can purchase items for personal use or for renting. Separately, you can pay for hotel services.
One of the largest developers of the country is the Alliance Group. Among the company’s projects are rental facilities with favorable conditions for investors.
Due to the absence of red tape, the purchase of apartments in the country is simplified. The whole procedure is not more than an hour, and the foreign buyer gets the right for simplified registration of a permanent residence permit. There is no tax on the purchase of housing.
Most Russians invest in real estate in Georgia, they account for 30% of the total number of transactions. The share of citizens of the CIS countries is 40%, the rest falls on investors from Turkey, Iran, and other countries.
80% of Russians buy real estate in Georgia to generate income when renting, and only 20% for their own use.
Fora rental business, you can use the services of a management company or conduct business yourself. Management companies undertake to establish an online apartment reservation system and interact with travel agencies. The package of services includes insurance, cleaning, room service, administrative and utility costs. For all this, the property owner must give 40% of the profits.
The level of service in the Alliance Group complexes is provided by international management companies from Switzerland and the USA. This will attract more tourists and make them regular customers.
The attractiveness of buying real estate in Georgia is the rapid return on investment. Here, the cost of renting apartments is the same as in Europe, but the price of the property themselves is 2-3 below.
The mild climate of Georgia, the presence of ski resorts, seaside resorts, vineyards provides a year-round tourist flow, which allows you to have a steady income by renting out real estate.