Georgia is certainly known for its resort of Batumi. It is an attractive region not only for those who come here for vacation, but also for those who are engaged in investments. The idea of buying Georgian real estate is a good option if the investor has a large capital, because despite the rather high cost of residential assets, its payback is at a high level.
Two main advantages of investing in a resort town
When thinking about buying any commercial holdings in Batumi, an investor should understand why it can bring him good results. The two main factors that are fundamental are:
- Favorable location and climate.
The shores of this city are washed by the Black Sea. Most tourists go here for its sake and also for the pleasant climate. Even in winter, the sun shines here constantly, on average, during the winter season rains fall only for 6 days.
- Tourist development and potential.
Tourists visit the city not only for the sea, but also for the stunning nature, pleasant climate and to get acquainted with the culture of this country. The growth of tourists contributes to the demand for housing, particularly for short-term rentals. Here it is profitable to acquire premises for the purpose of setting up hostels, for example, or renting it out for other purposes.
External factors contributing to the stabilization of the realty market in Batumi
Investors from different countries choose Georgia as their main investment target. Everything is due to the fact that there is a comfortable legislation for them here. Special programs developed by the government allow them to enjoy such benefits as:
- benefits for taxpayers;
- simplified registration of property rights;
- faster and easier processing of citizenship or visas.
In addition, the country as a whole shows a stable economic situation. Inflation in Georgia can be characterized as moderate, which attracts investors. In addition, Batumi constantly receives a huge influx of money thanks to tourists, which also affects the stability of the economic situation in the region. It is important to take into account such a moment as seasonality. Demand for real estate can correlate with the beginning and end of the tourist season.
Of course, in addition to the advantages, there are risks involved. They include the fact that the economy as a whole in the world – quite unstable. Also specifically in this market, competition is very high, because of which investments can be unreasonably high. Before starting the investment process, it is important to research the market and consult with people who are knowledgeable about it.