BUSINESS
Real estate in Georgia that is valued at millions
30 October, 2014
Finding real estate to suit your needs is no longer a problem in today’s Georgia. There exist multitudes of webpages and agencies that offer apartments and private homes as well as office or commercial space. We have recently become interested in the most expensive living spaces available and addressed several real estate agencies to find out. After getting introduced to the field, we arrived at the conclusion that although real estate is the most expensive in Tbilisi, although other cities
aren’t far behind the capital – Kutaisi, Batumi and Black Sea coast in general are all quite pricy.


When living or office space is in good condition and well-equipped, one square meter of it can cost up to $2000-2500. Founder of one of the agencies, who asked to stay anonymous, said the following: “Currently we have several houses for sale that are priced at 3 million dollars; one of them is located in Krtsanisi. Its owner has been selling it for a long time, but the buyers are not exactly in a rush, because buying such expensive property is not an easy process. As my observations show, usually this kind of property is purchased either by foreigners or Georgians living abroad. In Georgia, you can count the number of people able to pay several million dollars for a house on your fingers”.
We also contacted Avtandil Gugeshashvili, founder and director of “Beruka LLC”, who openly talked on recent developments in the real estate business.
Avtandil Gugeshashvili: “Before the war in 2008, our real estate market was quite profitable and demand for more expensive homes was also high. But after the war, it all got worse. At this stage, our country is stagnating when it comes to selling real estate. Many people want to sell their stuff, but not many want to buy it, which makes matters quite complicated. Prices have grown in comparison to the previous year. Although it is hard to say what caused this, I suspect that it has something to do with both construction companies and homeowners raising their rates. As for expensive homes, they are divided in two categories – apartments that are part of apartment blocks and private homes, with their own yards and even farmsteads. As a rule, private homes cost far more. Then there are also buildings that aren’t homes, yet are quite expensive, such as hotels, factory buildings, plots of land – all these cost a fortune to obtain. And the price increases with size – the larger the area, the more expensive real estate is. Currently, real estate agencies have found some serious competition in webpages. Why would a buyer bother with an agency when he can do all his business on the internet? Homeowners place an ad on the webpage and potential buyers read everything they need there”
Kakha Mikaia, manager of “Relto LLC”, noted in a conversation with bpn.ge that plots of land or commercial space often end up costing far more than a home: “For example, currently there is a plot of land for sale in Poti, near the port, that costs $1 300 000. It includes a building and some installations. Another place where we have expensive real estate is Kakheti, where a large area costs up to $ 700 000. As for expensive homes, we have one for sale in Tbilisi’s Mtatsminda district. It is worth 2 million dollars. The same price tag is carried by an apartment in Vake district, which occupies an entire floor. Selling such expensive property is very hard; it takes a lot of effort to find a man who would seriously invest such an enormous sum of money into real estate.”
The situation is no less interesting when it comes to renting property. According to Tatia Zamtaradze, representative of “Tbilisi Rent LLC”, sometimes it is more expensive to rent an apartment rather than buy it. “Sometimes the rent ranges from $3000 to $5000, but that’s only for the best, most comfortable apartments that are usually found in Vake, Saburtalo, Sololaki, at Vera and Tbilisi’s central districts. These expensive apartments are usually rented by foreigners; sometimes businesses employing them cover the costs. Although it should be noted that demand for such expensive apartments is lower this year” – says Tatia.

Author: Khatuna Chigogidze
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