New Construction in Tbilisi for Investment: What You Need to Know
Investing in Georgian real estate remains a sought-after method of capital preservation thanks to dollar-denominated returns and the absence of property ownership taxes. Buying an apartment in a new development in Tbilisi, Georgia means acquiring an asset with potential return on investment (ROI) of 6–9% annually under the traditional rental model. However, the market is not homogeneous: the liquidity of two similar properties in different microdistricts can differ dramatically. A successful transaction requires accurate calculation of fit-out costs, tax obligations, and actual occupancy rates—not reliance on promotional brochures.
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Entry Strategies: Speculation and Rental
Your financial model determines search criteria and budget.
Two main strategies operate in the capital's market, with different payback periods.
Speculative Model (Resale)
The investor enters the project at the excavation stage or lower floors and exits before commissioning. Price per square meter growth over the cycle (1.5–2 years) reaches 20–30%. The primary risk is timeline violations, so verification of permits and the developer's financial stability is mandatory.
Rental Model (Rental)
Focused on generating passive cash flow.
Long-term rental: Provides stability and minimizes wear on finishes. Average yield is 6–9% per annum in hard currency.
Short-term rental: Potential of 10–15% annually. The model is sensitive to seasonality, vacancy periods, and depreciation. Requires professional management and cleaning costs (15–30% of revenue).
Criteria for a Liquid Asset
To profitably buy a new construction in Tbilisi, you must evaluate parameters that affect end demand from tenants and secondary market buyers.
Format and Layout
Maximum liquidity for studios and 1-bedroom units of 35–50 sq.m. They find tenants faster and are easier to sell on exit. Large units (3+ rooms) have longer market exposure times.
Geography and Surroundings
Central locations (Vake, Saburtalo) guarantee high rental rates and demand from expats. Developing areas (Didube, Gldani, Isani) offer lower entry thresholds and capital appreciation potential through infrastructure improvements.
On-Site Amenities
Presence of lobby, concierge service, pool, or co-working space increases rental rates by 15–20% compared to standalone buildings without additional amenities.
Cost Structure: Fit-Out and Hidden Fees
When searching "new construction in Tbilisi from developers prices buy," investors see the base price per square meter, but this is not the final project budget. To calculate real payback, add associated costs.
Delivery Condition
80% of units are delivered in "black frame" (concrete) or "white frame" (screed, plaster). Full-cycle fit-out is required to launch operations. Budget for quality renovation with furnishing is $300–400 per sq.m.
View Characteristics
Units with mountain or city views cost 10–15% more than courtyard-facing equivalents. During rebranding this differential persists; for traditional rentals it increases occupancy and reduces vacancy.
Maintenance Fee
Monthly payment for security, elevators, and grounds maintenance. In modern complexes, the rate ranges from $0.5 to $1.5 per sq.m. These expenses fall on the owner and reduce net margins.
Tax Regime for Investors
Georgian legislation creates transparent conditions for foreign capital, minimizing tax burden.
Acquisition: Purchase tax—0%. Only title registration fee is paid ($18–75 depending on urgency).
Ownership: Property tax for individuals—0% if household's annual income within the country does not exceed 40,000 lari (~$15,000).
Rental income: Standard rate—20%. Upon registering residential landlord status, the rate drops to 5%.
Sale: When owning the property over 2 years, capital gains tax—0%. When selling before this period, the rate is 20% (or 5% with documented expenses).
Risk Management
Investment in foreign assets requires protection from specific local threats.
Construction risks: Delays or project freeze. Solution: Choose complexes accredited by major banks (TBC, Bank of Georgia), or enter at final construction stage.
Legal risks: Land encumbrances or double sales. Solution: Mandatory verification of Public Registry extract and land cadastral code before transaction.
Operational risks: Remote management of short-term rentals is inefficient. Solution: Transfer functions to property management company (commission 20–30% of income).
Agency Role in Investment Transactions
Independent search saves money initially but often leads to financial modeling errors. The professionals' task is to provide objective analytics, not sales department promotional promises.
When planning to buy an apartment in a new construction in Tbilisi through specialists, you receive:
Comparative analysis: Real figures on rental rates and occupancy in specific locations.
Legal security: Audit of developer history, verification of land rights and contract terms.
We work on the client's side, ensuring clean cross-border transactions and helping select liquid assets with clear exit strategies.
To see our catalog, just click the button below
When planning to buy an apartment in a new construction in Tbilisi through specialists, you receive:
Comparative analysis: Real figures on rental rates and occupancy in specific locations.
Legal security: Audit of developer history, verification of land rights and contract terms.
We work on the client's side, ensuring clean cross-border transactions and helping select liquid assets with clear exit strategies.
To see our catalog, just click the button below
FAQ
1. How to buy an apartment in a new construction in Tbilisi, Georgia without tax obligations upon subsequent sale?
To be exempt from capital gains tax, you must own the property for more than 2 years. In this case, the rate on sale will be 0%. When selling before this period, a percentage is charged on the difference between purchase and sale price.
2. What is the realistic yield for traditional rental in the capital?
A realistic benchmark for long-term format is 6–9% per annum in hard currency. Short-term format generates 10–15%, but requires deducting management costs (20–30%), cleaning, and covering vacancy periods during low season.
3. What is not included in the price for "new construction in Tbilisi from developers prices buy" query?
Advertised price typically indicates price per square meter in "black" or "white frame" condition. Transaction budget must include fit-out costs ($300–400/sq.m), furnishing, utility connections, and registration fees.
To be exempt from capital gains tax, you must own the property for more than 2 years. In this case, the rate on sale will be 0%. When selling before this period, a percentage is charged on the difference between purchase and sale price.
2. What is the realistic yield for traditional rental in the capital?
A realistic benchmark for long-term format is 6–9% per annum in hard currency. Short-term format generates 10–15%, but requires deducting management costs (20–30%), cleaning, and covering vacancy periods during low season.
3. What is not included in the price for "new construction in Tbilisi from developers prices buy" query?
Advertised price typically indicates price per square meter in "black" or "white frame" condition. Transaction budget must include fit-out costs ($300–400/sq.m), furnishing, utility connections, and registration fees.
Contact Us
Get in touch with us by phone or via messengers for a consultation and help choosing the right property.
+995 557 326 104
cappuccinoestate@gmail.com
cappuccinoestate@gmail.com
Georgia, Batumi
