Frequently Asked Questions About Real Estate in Batumi
The Batumi real estate market has been attracting increased attention in recent years. Batumi’s inclusion among the top 10 best European destinations for investment by European Best Destinations has further bolstered interest from both local and foreign investors.
The brief FAQ guide below aims to provide quick initial guidance to people interested in buying an under-construction apartment in Batumi.
What is Investment Property?
Real estate assets are generally divided into two main categories: residential and commercial. The residential category itself is often split into two sub-categories: property purchased for long-term residential goals and investment property, with the primary goal of acquisition to generate income and increase capital. With the 2020s being increasingly economically unstable, more and more people are seeking investment options that are protected from economic fluctuations and can not only preserve capital but offer stable growth. According to the Knight Frank Global House Price Index, real estate is one of the most reliable long-term investment instruments globally, nearly always protected from inflation. You can read more in-depth about it in our blog Advantages of Investment Property.
Is It Safe to Live in Batumi?
Batumi is known for its vibrant cultural life. The city is rife with museums, cinemas, shopping centers, and other entertainment establishments. Additionally, Batumi is considered one of the safest cities in Georgia. The overall crime rate is low, especially when it comes to violent crimes. As in any major touristy city, minor vandalism and pickpocketing incidents may increase with the influx of visitors during the high season, but nothing extraordinary. You’ll simply need to follow the same strategies as you would when traveling to any large European city — don’t leave your bag open, pay attention to your belongings, etc. Overall living in Batumi is comfortable and safe for both locals and foreigners.
You can learn more in our in-depth guide to living in Batumi.
Can I Get a Mortgage at Georgian Bank if I'm Not a Georgian Citizen?
The Georgian banking system is quite flexible and offers non-citizens a wide range of financial products.The documentation non-residents are typically asked to provide doesn’t differ much from what the citizens usually need – a notarized copy of your passport, proof of income, and employment documents. While a residence permit is usually not mandatory, it’s better to provide it to the bank if you have one - it can expedite the process and increase the likelihood of approval. Typically, mortgage loans for foreigners are available on similar terms as for locals, although in specific cases, the interest rate may be slightly higher (it’s important to remember that each bank works with its own specific terms and conditions). As of 2024, the maximum repayment term for a mortgage loan in Georgia is 180 months, with an average interest rate of around 14% for loans in GEL and 8-9% in USD and EUR.
To learn more about the subject, check out our blog, What Foreigners Should Know About Mortgage Loans in Georgia.
How Do I Choose a Reliable Construction Company?
First and foremost, you must check the company’s legal status and construction permits. A truly reliable construction company has nothing to hide, understanding that full transparency is, among other things, an effective marketing tool. Request full information on permits, architectural plans, and materials (go a step further and verify the quality of materials used in construction). Timely communication is another good indicator. Lastly, check the company’s reputation and ask other customers about their experiences. Remember that a trustworthy developer won’t try to entice you with unrealistic deadlines or exaggerated profits – they will always be honest about both the benefits and potential challenges.
If you have doubts about your chosen company, check out our extensive guide on how to choose a reliable construction company in Batumi.
How Do I Invest in Real Estate?
Investing in real estate may seem easy at first glance – you choose the space you want to buy, sign the necessary documents, and that’s it. In reality, you need to carefully determine the size, price, and purpose of the property you’ll be buying – in other words, a thorough long-term plan is needed.
Real estate investments in the city generally go into four main directions: residential apartments for long-term rentals, tourist apartments for short-term rentals, commercial spaces, and hotels. Residential apartments are considered the most conservative and stable investment, while tourist apartments can yield higher profits but are riskier due to their seasonality. Commercial spaces and hotels are typically aimed at more experienced investors, as requiring both significant initial capital and active management.
Batumi has become one of Europe’s most attractive investment destinations in recent years. you are interested in investing in real estate in Batumi yourself, check out our blog about
investing in Batumi real estate!
