Owning real estate in Batumi has to be one of the most financially advantageous privileges to have: favorable loan programs and extremely attractive prices are just some of the benefits that you can get at the real estate in Batumi- therefore, it is natural that the demand goes up each year.
Batumi is a real European pearl and yes, this is exactly what it deserves to be defined as. To be honest, nowadays it is really hard to find as profitable place for buying properties as it is for real estate in Batumi.
All of the buildings in Batumi meet modern standards- which is very good marketing phrase that can be found in any advertisement, but when it comes to the city, this phrase actually applies to the situation. All of the buildings built in Batumi have unique architecture and you can hardly find any similar project.
The Black sea in the city is one of the advantages of Batumi- with its location, warm climate, and well-equipped beaches. This magnificent resort has to be one of the best on the Black sea coast so the prices of real estate in Batumi are quite surprising. Let’s compare several cities to Batumi: Price per square meter to buy apartment in city center is $790 in Batumi, $5130 in Moscow, $1865 in Kiev and $3500 in Warsaw.
|Price per Square Meter to Buy Apartment in City Center||790 $||5130 $||3500 $||1865 $||1326 $|
|Price per Square Meter to Buy Apartment Outside of Center||411 $||2370 $||2240 $||820 $||650 $|
Let’s talk about statistics and benefits: According to the newest researches, most of the investors of real estate in Georgia are non-residents and live abroad- this is why buying real estate in Batumi remotely and renting it out with the help of available services(property management companies, Airbnb, etc.) that are the most flexible, convenient and less time-consuming.
Let’s get to the reasons of why is it beneficial to buy real estate in Batumi:
Huge Range Of Choice
According to the real estate experts in Georgia, big companies increased their construction volumes by 101%, approximately 22752 properties. This boom was caused by increased demand towards real estate in Batumi from the tourists, as the city is seaside resort that never sleeps. The range of choice is huge: you can buy secondary property as well as newly built, in the most rational price from the hotels to the other real estate.
If you’re looking at it as an investment with the bonus of having a vacation property, there are developments in Batumi that you could buy into before they’re finished and get a hotel or apartment in a serviced building. The property company rents out the unit when you’re not there, giving you passive income. That’s the theory anyway.One of the answers regarding to this question: What do you think about buying an apartment in Batumi for renting it, though not living in Georgia?
Buying Property Has Never Been This Easy
To buy real estate in Batumi or Georgia in general, all you need is a passport as a document. As I already mentioned, buying real estate remotely is the easiest thing to do, which would be achieved by granting a power of attorney to your real estate agent, friend or relative. What is one of the most attractive reasons of buying the property in Batumi is a favorable taxation policy that the country has.
Foreigners have exactly the same rights when it comes to buying residential real estate as Georgian citizens have. There are no extra requirements for foreigners and there are no extra taxes either. In addition to residential real estate, the same applies to the purchase of commercial real estate such as hotels, shops, restaurants, offices, etc. There are no restrictions here either.You may whonder if foreigners can buy apartments easily in Georgia. And the answer is yes.
Prices on real estate in Batumi grows each year so making investments today would be the smartest thing to do, if you are looking for an extra income, of course. Even if you just rent out your property, on the average you will get 7-13% of your yearly income. Selling real estate in Batumi will always be possible for you, if you urgently need a huge amount of money.
Batumi is definetely on the rise, its developing at a fast rate, demand for real estate is growing and so are the prices, so the sooner you invest the better. The only downside i can think of is that Batumi is a seasonal place, it is crowded in summer and almost deserted in winter and automn, so you might find it difficult to find a tennant, but you can make a lot of money during beach season renting out on weekly basis.Is it worth to invest in Real Estate in Batumi? Check out more comments at Reddit.com
Great Infrastructure And Location
The huge range of real estate in Batumi makes it easier to choose the best location possible- which of course affects your yearly income. Batumi has well developed infrastructure and all of the essential buildings like kindergartens, schools, restaurants, supermarkets, shops and entertainment places are located withing a short walking distance- we should give the credit to the city itself too, as its size makes it possible. I also have to mention that most of the real estate in Batumi are located 200-500 meters from the mesmerizing Black seashore.
By the seaside, with the opportunity to buy real estate for $ 30,000 is a unique combination of low investment at the beginning and a short payback period. Over the past 5 years, the number of tourists in Georgia has grown from 2.4 million people to 8 million. These are tourists who provide the main demand for hotel rooms and apartment rentals.Read the article “Invest in Georgia” at Geoln.com
The average cost of newly built real estate in Batumi is $400 per square meter-take into account that these are the properties located closest to the beach. Of course, secondary real estate is cheaper and the price depends on a lot of things like location, condition etc. Typically, investor gets the whole money back in around 5 years.
Rate of return on residential property in Batumi: If you buy 50 square meters of residential property for USD 720 per square meter (in total USD 36 000), and rent it out for between USD 65-80 per night, assuming that the property will be occupied only 33% of the year, your annual return will be 22.8%.
22.8% is significantly high annual return, in comparison with the average of 10% in Europe. The capital of Georgia, Tbilisi, also offers an average 10% annual return on residential property. Such high returns can be attractive for local and foreign investors.
Given the fact that Batumi is a very popular summer destination among neighboring countries as Azerbaijan, Armenia, Ukraine and Russia, it wouldn’t be surprising to find out that properties are being bought by representatives of these countries.Read the entire article about investing in apartments in Batumi. Check out the article: “Wanna Get Rich? Make Batumi your second home – Georgia Today
What are the cons of investing in Batumi real estate?
Although there are plenty of great reasons to invest, you should always look at the cons too. Batumi is very popular in the summer months, but the season is relatively short. Don’t expect more than 2-3 months of really warm weather. It may be difficult to rent out the apartment in the low season (which is from September to May). On average, the coolest month is January with 10 degrees Celsius (or 50 degrees Fahrenheit). Check out the weather stats for Batumi here.
There are an awful lot of hotels and hotel rooms in Batumi right now. There’s been a building boom for at least five to eight years, and although I am not an expert in this field, I would be surprised if this situation is not a bubble just waiting to burst. Although the climate in Batumi is lovely most of the year, the typical tourist season is only July and August, based on when most of the people interested in coming have time off from work.Is it a good idea to invest in Batumi, Georgia hotel business? Is there a bubble or other hidden problems? Check out the comments at Quora.com
Can you invest in Georgia with confidence?
Owning real estate in Batumi truly is a treasure with its modern projects and mesmerizing views. If you do some good research and find a reliable company, you will most likely be successful.
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