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5 Problems: Gudauri Real Estate Renovation
Oct 15 2024
Investing in Batumi real estate is still actual nowadays. Batumi was always international city with various investors around the globe. City is multicultural.
Batumi, located on Black Sea coast, has become not just a popular tourist destination. It’s a city with many new permanent citizens. It’s a city that became a real estate investment hub, attracting investors from around the globe.
The formula of Batumi success lays in its location, history, legal environment, free economy.
Batumi is located on the eastern seashore of Black Sea. As any other seaport it was always a cosmopolitan city with people flowing inwards and outwards. Batumi is located very close to Turkish border, with significant Turkish population and people crossing border to intentionally come to Batumi. Very close to Batumi is a mountainous area, of Adjara, therefore people are enjoying not only water, but mountain activities.
Batumi was mentioned in documents dated I a.d. m called Bathus (deep in Greek). However, the settlement in that region have much more ancient history, evidences of which are presented in a form of various artifacts. Armies of various countries were conquring this Georgian city of Batumi, showing its strategic significance: Ancient Greek, Roman Empire, Byzantine Empire, Ottoman Empire, Russian Empire. Every culture had influence on local population. People in Batumi are freedom-lovers, they were ought to learn Turkish, Russian, English languages, many converted to Islam. The architecture is partly old-styled European with beautiful details and sculptures, partly Dubai-styled with skyscrappers.
Since rose revolution in Georgia the whole Georgian legal and economic landscape has changed. Georgia is corruption-free country with very high freedom of economy and possibility of foreigners to acquire Georgian property. This allowed Batumi to become new economic centre of Georgia after Tbilisi.
Namely, as seashore always attracts people for spending their time in summer and due to legal and economic freedom real estate developers started developing mind blowing projects for the tourists in Batumi.
Beautiful boulevard was reconstructed for walking, scrolling on electric vehicles, beautiful kiosks, installations on the seashore related to love.
Why Batumi is already many years and still the go-to destination for real estate investment. Below we disclose the formula.
People love sea, water, chilling vibes. Batumi was always top destination for locals to get to the sea, however it was not always comfortable. Back in a days Georgians were staying a lot in guest houses with very modest conditions, but the demand on staying there was always only increasing. Not only Georgians but people from other countries were and are coming to Batumi for the sea, like Armenians who do not have access to the sea. Azerbaijani, who prefer to visit Black Sea rather than Caspian sea and stay in culturally different environment, rather than their everyday reality. Russians and Ukrainians who want to stay in more modern and European place rather than soviet and old environment.
Skyscrapers in Batumi is relatively new form of real estate. After developing old part of Batumi which is full of old-style very well preserved 19th century European houses the demand was still increasing and the developers started creation of skyscrapers – super high buildings on the seashore. Skyscrapers on the seashore look super modern and interesting, and we assume this trend has come to Batumi from places like Miami, Dubai, etc.
Foreigners are allowed to buy apartments / apart-hotels in Batumi. In many countries purchase of real estate is restricted and is subject to certain conditions, whereas in Georgia / Batumi – these restrictions do not apply at all. Moreover, apartments in Batumi are heavily bought primarily by foreigners, such as Turkish, Russians, Belarusians, Israelis etc.
Many people are dreaming to buy apartment on the seashore for rental purposes and for having a sweet spot for their family to visit whenever they want. However, buying such real estate in other countries is normally super expensive, especially buying such apartment in modern, futuristic city.
Batumi still has many affordable real estate options. We assume that the low prices on real estate in Batumi is due to super high supply of properties. There are tons of developers creating hundreds of thousands of square meters in Batumi and although there is high demand on properties in Batumi – supply of real estate is still higher not allowing prices of the real estate to increase dramatically.
Investors shall also take into consideration that obviously Batumi real estate is physically bind by Batumi boundaries and at certain point it will not be possible to build much in Batumi as there physically will not be enough space. We assume that based on that the real estate prices in Batumi will raise at that point. At the same time, because of this problem is already pretty close – nearby city of Kobuleti is starting its rise.
War in Ukraine created huge demand on real estate in Georgia in general. After the war started a lot of people from northern countries found their new home in Batumi. Especially we would notice people from Belarus, then Russians and Ukrainians. Obviously many of them have already moved to other countries, but certain percentage stay in Batumi as per today. We really hope that the war ends soon, but for investors Batumi still can be considered as safe spot that can be a nice place for people leaving regions with armed conflicts and whose number in the region unfortunately is steadily growing.
The price range in Batumi’s real estate market is equally diverse, with properties ranging from $35,000 to millions of dollars. However, experts predict that the era of budget housing will end by 2025, making now the ideal time to invest.
Properties developed by reputable developers are also highly sought after. The demand for real estate in Batumi is expected to grow, fueled by the city’s economic transformation and increasing tourism potential. At the same time, there is huge problem with timely finishing of developments.
There are many developers in Batumi who promise you:
But in any other industry – this is too good to be true. We receive so many letters from many investors that invested in Batumi real estate but either their development is late with couple of years, or they never got it, or the quality is very poor. This can take place in environment with too much of economic freedom as it is in Georgia.
This is why we suggest either buying apartments in already built real estate in Batumi, or buy property only from certain developers with established reputation on the market. Our real estate agency is here for you.
In short – it depends on your short-term and long-term goals. But one is for sure – if you decide to buy any sort of real estate in Batumi: villa / hotel / apart-hotel / apartment / land – you need proper due diligence and assessment on that. We are here to help!
Read the blog about renting an apartment and find out what you need to consider in order to minimize the discomfort of the transition process. Our real estate agents will help you at every stage: they will select and evaluate an apartment, they will help you arrange documents and simplify the transition process.
Buying Apartment in Georgia is most popular demand we deal with in Ri.GE real estate agency. Real estate / apartments in Tbilisi and Batumi are obviously the most in-demand directions.