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Tbilisi, with its combination of European comfort and Asian exoticism, is becoming increasingly attractive to foreign property buyers. The process of buying a home in the Georgian capital differs significantly from the usual schemes in Europe or the US, but it is its simplicity and transparency that attracts investors.
The first step for a potential buyer is to determine their budget and preferences. The Tbilisi market offers options from modest Soviet apartments in residential areas for $40,000 to elite new buildings in the historic center with price tags starting at $300,000. The Vake and Saburtalo districts are particularly popular with foreigners, where you can find quality apartments for $1,500-2,500 per square meter. It is important to note that prices on the secondary market are often 15-20% lower than in new residential complexes.
After a preliminary study of the market comes the stage of choosing a reliable real estate agency. In Tbilisi there are both international brokerage companies and local agencies with English-speaking staff. A professional real estate agent will not only select options according to the given parameters, but will also help to check the legal purity of the object, which is extremely important in Georgian conditions. The cost of the service is usually 3-5% of the transaction price.
Legal verification is the cornerstone of a safe purchase. Despite the transparency of Georgian legislation, there are cases of fraud. It is necessary to make sure that the seller has full ownership rights, and that there are no encumbrances or legal disputes. Special attention should be paid to land issues – foreigners cannot buy agricultural land, but they can buy land for construction.
Financial settlements in Georgia are usually made in US dollars, although formally payments are made in lari at the current exchange rate. Most transactions take place through safe-deposit boxes – the buyer deposits the money, which is transferred to the seller only after the title is fully formalized. Foreigners are free to open accounts in Georgian banks, which require a passport and proof of the origin of the funds.
The transaction is formalized at a notary’s office and usually takes no more than three business days. Georgian law does not require personal presence – a power of attorney can be issued for a representative. After signing the contract, the new owner receives an extract from the Unified Register of Real Estate Rights, which is the full analog of the title deed.
Tax obligations of the new owner are quite moderate. The annual real estate tax is only 0.1-1% of the cadastral value, which is usually much lower than the market value. If the property is sold prior to three years of ownership, a 5% income tax must be paid; after three years of ownership, this obligation is waived.
After the purchase before the foreign owner opens additional opportunities. With investments from $300,000 can qualify for a residence permit, and the purchased property can become a source of income – rental rates in the center of Tbilisi reach 6-8% per annum of the value of the object.
It is important to understand the cultural peculiarities of the local market. In Georgia, bidding is accepted – the initial price is often inflated by 10-15%, and a skillful buyer can save significantly. It is also worth remembering that many old houses need serious repairs, and new apartment complexes may have problems with management and maintenance of public areas.
The process of buying real estate in Tbilisi is simple, but requires attention to detail. The right property in a good neighborhood will not only provide comfortable living, but will also be a reliable investment in the ever-growing demand for housing in the Georgian capital. The main thing is not to rush, carefully check all documents and use the services of trustworthy professionals.
