Should You Invest in Batumi, Georgia Real Estate?
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- เผยแพร่เมื่อ 21 ส.ค. 2024
- nomadcapitalis...
Real estate in Batumi, Georgia has been heavily marketed as a great place to earn high yields with a low buy-in. But while we love Georgia, we’re less excited about these deals.
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Fully agree Andrew, I stay away from developers who are typically selling at market value or above market value. I learnt many years ago you make your money in property when you buy and the key is to buy below market value.
let me know now days if you find one below market,
But, you can't avoid the fact that Batumi is going to be higher level than today, and prices are going up all the time (except pandemic moment). thing with Batumi is that more new building are rising more popular it gets, it has taste of Miami for Armenian, Azerbaijan, Kazakhstan and all middle Asian people because they have no sea, and they don't need visa to visit Batumi. A lot of good projects are happening in here and government is also kinda supporting it.. So investing in Batumi is still good idea if you like the city and you can wait for 5-10years))
I have a technical question! Since foreigners are not allowed to own land in Georgia, when purchasing a residential property such as an apartment in an apartment building, do you then not also own a part of the land on which the apartment building exists?!
@@sbadrawi2011a actually I'm not too deep into that topic, but as i know you can't own agricultural land, if you want you can buy a house and a lot of foreign people own houses in Georgia, or can build a factory, but I'm not sure 100 %, for example if you want to build water dam, you can get lend for 50 or 80 years or something like that. And not foreign persons but company can own something))
@@gebe6560 Thanks for the reply mate!
It seems that such a question should be addressed to a lawyer. I just thought that someone with experience might shed some light. I am actually only interested in knowing exactly regarding an apartment in an apartment building, is it possible to also own a part of the common land there!
About Batumi, I agree with you 100%.
Thanks for video! Totally agree: if you buy a 30 -40 000 USD apartment in Batumi then don't be surprised to rent your apartment at the same price like everyone does. Simply, because there is an oversupply of apartments on the market - almost all apartments look alike. So, if you want to invest in property now, you should invest in residential complexes, which offer various types of service and provide an amazing conditions for your leisure time in Batumi. If you like to buy an apartment for youreslf to live in, then the person to whom you are going to rent your apartment - will definetly value it for the price higher than on the market. So, when investing in Batumi you should not think trivially.
I have a technical question! Since foreigners are not allowed to own land in Georgia, when purchasing a residential property such as an apartment in an apartment building, do you then not also own a part of the land on which the apartment building exists?!
@@sbadrawi2011a Foereigners are allowed to own non-agricultural land.
There is only one type of real estate investment that is not open to foreign investors and that is agricultural land.
Almost 9 Milion people visited Georgia in 2019, and probably 80% visited Batumi or around Black see. Consider how small georgia is I think 8 Milion people is a lot per capita
I am very optimistic about Batumi's prospects and future but I don't think anyone believes the 9 million figure that is often repeated by some Government officials.
The true number in a regular year is a little.more than half of that (4.5 to 5 million) and of these a fifth to a quarter visit Batumi. This is still a large number for a country with 3.8 million resident population.
Once there are direct flights from Russia and because many European and Asian countries cancelled the visa-on-arrival facility for Turkish Passport holders due to the economic crisis in Turkey I expect tourist numbers to pick up to as many as 6.5 million visitors to Georgia in 2022 of which at least a quarter will spend time in Batumi.
Informative. I've been waiting for a long time for this video. Please consider talking about "co-ops" and "condop" in the future. Also love to see your views on renovation of detached houses as well. Love your videos, specially when they're about real estate. 💚 Thanks a lot.
Interesting to watch this video now while at the same time I am visiting Batumi.
Thanks for insights Andrew!
Interesting, my experience in Warsaw has been to buy from the developer (but avoid the super high end where I believe you’ll lose), but historically a new apartment from the developer on the metro line would be my preference.
On the other hand, those same apartments subsequently on the secondary market are almost always overpriced.
Right! You’ll always over market, and have to wait longer on making gains on your investment.
I'm originally from Colombia. The colombian peso devaluated 30%+ compared to the dollar in the last year. Colombia has a wealth tax. Laws and taxes just get crazier. Laws favor tenants tremendously. My investments in USA are safer and generate cash in a solid currency I can spend around the world . Just my take. I can't get around the idea of investing in countries with weak currencies.
Many countries use USD or EUR to buy/rent/sell real estate.
Yeah I don't get all his hate about usa when he goes to invest in countries in a lot worse situations like Colombia. While usa is trending to loose its economic freedom over the time it's still ahead of a lot of the countries he mentions .
The Georgian Lari is not a weak currency. It appreciated vis-a-vis the USD by almost 20% in the past 7 months alone.
What about gambling? Maybe is a factor to take in consideration because in Turkey casinos are Forbidden which attracts foreign players/tourists to Batumi.
Sure, but more and more places can open up gambling.
Thank you for the advice. Was thinking about Batumi recently, you have great points
Glad it was helpful!
Good afternoon Prof. Good afternoon Nomad Capitalist Team. Good afternoon Class.
More good advice. I'll always remember to avoid the 'value traps.' Where did you buy your mediocre property at?
Hello!
Insightful video, Andrew. Thank you. I purchased an apartment in Twin Towers after seeing the ads while travelling to Batumi. The developer is well-known and reliable, and they are pretty much finished with the project right now. They advertised a 24% return, which matched the numbers when they did their study. But with the new properties flooding the market, I think a return of 11-14% seems a lot more reasonable and the returns will only decrease with time. I don't regret my decision to be honest, but I do realize it was extremely risky and didn't represent the best opportunity in the market.
Thanks for sharing that.
I'm in Batumi. Be happy if you get a 5% net return on your investment (after taxes, management and maintenance fees)
Never believe a single word from those real estate developers and agents ! They lie just like their breathe...
@@didierdenice7456 5% profit is probably still better than nothing.
11% is still great.real estate ROI usually is 7-8% in USA
How’s your investment doing now after 4 years?
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Should I invest in a property first in the city I work in currently, or in a property overseas? Can't decide what makes the most sense
This is a long shot, but have you decided? I’m in the same dilemma
Andrew could you elaborate regarding your masterclass on investing in Tbilisi?
Is it good to buy in batumi now, prices are much higher than before I've been told, I liked the lay of it, being from no nature country,
this is one of your best videos
Thanks
Good advice
I was surprised at how wet Batumi was over two winters
My observation
Over developed currently
Rents are very cheap
Visa situation still good
For now
Worth considering ✌
last 2 years was Covid, 2019 it was almost imposible to find an apartment in batumi in season
What if me and hubby are just looking to relocate and buy a business in Batumi, to li e, work eventually retire. We're in Canada, empty nesters and the cost of living in Canada is ridiculous.
what if you don't live there and don't have the opportunity to go there, look around and purchase but still want to invest in real estate?
Thanks so much Andrew l met u in KL 2 days ago its Trev l am in London at the moment and off to Dominican Republic via Madrid shortly. l feel l achieved a certain amount of leverage (intellectual) meeting you and look foreward to jpining your group in the near future with a view to helping my partner and l achieve a second citizenship for her and possibly for myself although l do have an Australian and British passport
cheers Trev
Nice to meet you, Trevor.Hope to see you in Playa del Carmen.
What are your comments on buying a studio with Orbi group(market leader perhaps)?
Totally agree Andrew. I always like your videos but, This has been on of your better videos.
Why? Because of the specifics, I see more value in this type of clip.
The perfect 👌 [ passport - citizenships ] combination is : - canada 🇨🇦 + malta 🇲🇹 + Mauritius 🇲🇺 = 177 countries visa free in ( 3 three continents ) all of those countries have English as official language
@@Re3iRtH what citizenship do ypu have?
@@Re3iRtH you honestly don't need a new passport
@@Re3iRtH thats the whole point. american passport is so powerful in itself.
In your case, the only disadvantage of US passport is having to file/pay taxes even if you don't live in the US. Even if you get another citizenship you will still have to file/pay taxes in the US. You would need to acquire another citizenship as good as the US one, then relinquish the US one. Makes absolutely no sense unless you are making millions per year and not living in the US.
It is good for new comers i will follow you
What's wrong with Batumi's second hand market?
Are you still going through with our plan for the arabesque arch in the new apartment?
What is your opinion on Petra Sea Resorts in Adjar region? I am planning to invest in this off-plan project but will love to hear from you before I do.
Thanks
only turks and arabs buy estate in Batumi. climate is good, food is good, but too much chaos is the problem
It is totally wrong information
What chaos?
Andrew, can you please share the contact info of those two agents in Georgia?
Almost every inflight magazine has “incredible” investment “opportunities” in Batumi!!! Simple answer don’t waste your money!!! It’s not a good market and is saturated
isnt KL saturated?
His analyses are totally wrong. Batumi real estate is booming and it will continue to be so at least in the nearest future (5-10 years) and if Georgia becomes member of EU prices will fly.
I agree!
I was somewhat sceptical having not visited Batumi for over a year and because Batumi was extremely quiet in October 2020 but it is already recovering and at a rapid pace.
Sure rents were super cheap in Batumi in the last year and half (they still are) but this was a result of a few factors that created a 'perfect storm':
1) No direct flights from Russia means Russians need to either drive their cars all the way to Batumi (not an option if you live in Eastern Siberia which is almost ten thousand kilometers away) or fly to third countries and get on another plane (typically Belarus, the Baltic States, Turkey or Armenia which makes the journey cumbersome and more expensive.
The silver lining is sooner or later direct flights will resume and they have a larger terminal to arrive at in Batumi Airport (brand new terminal), as well as Rize-Artvin Airport in Turkey just an hour and forty minutes away and Kutaisi Airport two hours away.
Flights on the Tbilisi-Batumi route will resume in spring 2022 so expect a boost not only of tourists but also the residents of Tbilisi and Eastern Georgia and Western Azerbaijan.
2) Covid-19 (specifically the delta variant) hit Georgia more severely than 99% of countries and Georgia is still in the top ten in terms of infections per capita.
This scared off many tourists.
The silver lining:
The Omicron Variant seems to be very mild and it will replace the Delta Variant completely in a matter of weeks due to its rapid spread.
Expect restrictions to be lifted by spring or summer 2022 and that is when at least two million tourists return to Batumi. If only one in every two thousand invests in a unit in 2022 that is already 10,000 units and yes that is not only possible it is indeed probable.
3) Three of Georgia's neighboring countries experienced economic difficulty in 2020 and 2021.
Turkey's Lira is in free fall, Azerbaijan and Armenia had a 44 day war which created fears in both countries about the future economic prospects and so there was a noticeable drop in tourist arrivals from all three countries.
However, this situation will change dramatically in 2022 and especially 2023.
Affluent Turks who in 2017-2019 would typically spend family vacations in Thailand, Malaysia, Dubai, Croatia and Spain are now unable to even dream of these destinations because their purchasing power dropped by 70% - 100% in the past year alone.
Batumi is near and it is almost as cheap as Turkey so Turkish tourists and investors will return to Batumi in greater numbers than ever (not because it is their first choice but because they have no other choices).
Turkish GDP has dropped from around $11k in 2019 to $6k currently.
This means Turkish Passport holders will not even be able to fly to countries like Bulgaria and Romania visa free and this too will benefit Batumi tremendously in coming years.
So do you recommend us to invest in Batumi, Georgia Real Estate now is it safe to invest thanks a lot?
Hey Andrew, thanks for all the content, much appreciated! What do you think of investing in property in Amman, Jordan? Low prices and some impressive yields. Thanks in advance, Connor
My father bought 3 apartments at the Marriott there 2 years ago. Hopefully, it will be worth the investment
I have a technical question! Since foreigners are not allowed to own land in Georgia, when purchasing a residential property such as an apartment in an apartment building, do you then not also own a part of the land on which the apartment building exists?!
@@sbadrawi2011a I am not sure
Can you update us hows going?
This ironically aged quite poorly because anyone who bought before the Ukraine war made a shitload of money in rent. I lived in Georgia during this time and rent doubled.
Batumi good or bed invest in real estate for rent?
Didn’t Georgia recently change their immigration laws making it much more difficult to get citizenship through buying property?
Why would you want Georgian citizenship? There are many easier and more valuable options...Georgian residency is easy to obtain and all you need in most cases.
Citizenship is difficult in Georgia. They had residency program with $35k real estate investment. Yes, they changed the limit and raised it to $100k last year. Citizenship is hard there and will be harder in the future.
@@jordanwentzell5220 You are wrong! not easy now, and if you still buy you will have many problems
@@jordanwentzell5220 because Georgia has visa free travel with 118 countries. You can travel whole Europe without a visa.
@@keepcreationprocess You can get it by investing $300,000 in real estate or business in Georgia.
Can you give the name of the realtor that you trust in Tbilisi?
You just saved my 100K $
roi and aboslute yearly return are the key , not the price
Somebody mentioned Malaysian Chinese?
Is it possible to get Argentine citizenship by being in the country and studying there for 2 years and more. (Only being there as a student)
The socialist Argentina?
There is no need for you to study. You can have lets say $25k and live for 2 years and then apply for your passport. Knowing Spanish is not mandatory too but will be helpful. Consider Peru too. They have same situation with better taxation score according to 2019 nomadcapitalist index and maybe better food, but you will lose visa free travel to UK and Ireland.
Why would I want an Argentine citizenship? Argentina is a country devastated by the IMF, it's citizens are submerged in chaos.
@@The7dioses For those who want a 2nd citizenship, the ease of obtaining such is a big factor. From what I can gather.... and putting aside all of the "citizenship by investment" options... it's easier to obtain citizenship in Argentina than it is in many other countries. And of course, once you've obtained the citizenship, you don't have to live there.
* joining
where is georgia located in the world map? is it in the caribbean or europe?
Europe and Asia
At the crossroads of Europe and Asia, in the middle of two seas, Located in the ridges of the Caucasus.
oh my gosh. pls buy some google stocks )))
Wikipedia
turkey is better deal.
Can i get your email ?
You can reach our team at help@nomadcapitalist.com