If you are looking for investing in property, buying a piece, renting one, or simply looking for any information about different types of property in Tbilisi, Georgia, this is the article for you.
There are two types of property in general that you will read here, and they will be explained thoroughly and properly:
1. Residential Properties
Residential Property is a type of property, containing either a single family or multifamily structure, that is available for occupation for non-business purposes. In other words, residential properties are any kind of building or structure that people can live in, or at least there is a permit to sell, rent, or lease that piece of land.
One of the biggest financial decisions people make in their lives is when they decide to become homeowners. For many, particularly in more urban environments, the choice becomes difficult when they see different kinds of housing options. The differences between types of residential property can be very important and can have a great impact on your decision as an investor.
Different types of housing varies from villas, studio apartments, condos, town house, and even mobile homes. We will explain some of them here, based on the priority of investors.
Apartments are the most popular type of property for people both to buy or sell, or even rent in Tbilisi. Since the beginning of the new millennium, Georgia has been increasingly becoming a more and more popular tourist destination. Apart from that, a considerable number of foreign investors, companies, or offices have launched a new branch of their work in Georgia in the past 20 years. That has called for a lot of foreigners coming to Georgia for work.
Therefore, if you are a house owner, you can easily find a tenant who is willing to pay something between 350-650 dollars a month for a furnished house to rent, depending on the location and other facilities. A very easy source of income for Georgian landlords since the economic boom in the 2000s.
It is rare to find a fully-furnished apartment house to buy, but don’t forget; if you want to invest in property and then rent it, it must be furnished, especially for foreigners or expats. It is not like people who work, study, or live in other countries to buy any furniture for themselves.
Apartments in Tbilisi vary a lot in case of prices based on two very important factors:
Location and Area/Size:
Vake, Mtatsminda, and Vera are considered to be the uptown parts of the city, filled with fancy cafes, restaurants, and classy shops. As a result, apartments in these neighborhoods are considerably more expensive than other parts of the city. The average size for a 2-room apartment, 1 bedroom and 1 living room / kitchen is between 40-60 square meters and they value roughly between $50,000 to $80,000.
However, it is difficult to find an apartment of such size in these neighborhoods, since most apartments are bigger and more facilitated in these areas. Let’s take a 3-room apartment for instance: 1 bedroom, 1 living room, and 1 separate kitchen. It must be around 70 square meters and it is sold for somewhat between $90,000 to $110,000.
While an apartment of almost the same size, 60 square meters with 2 bedrooms, in a completely residential area far form the center like Digomi is about $45,000. But you should keep in mind that Digomi is a very big area and prices also vary there, but not as much. Plus, there is always more chance of renting your apartment, especially to foreigners, if it is closer to city center.
There are other districts of the town that are not far from the center and are very famous for being tourist attraction for their exquisite style in city planning and design, for example Marjanishvili or Aghmashenebeli street. The cobbled stone Aghmashenebeli street lined with shops and restaurants has always been on the bucket list of visitors to Tbilisi. A 90-square-meter apartment with 2 bedrooms in this neighborhood is worth $85,000.
However, this is a completely old area and most buildings there are at least 50 years old. Even though they are newly re-furbished, painted, and renovated, they rarely build any new residential buildings there. This is the main reason apartments are fairly cheaper, considering their size and facilities, than districts like Vake or Vera. For example a fairly big 2-bedroom apartment, 100 square meters, in Vera is worth $170,000.
Other districts that are particularly famous for residential buildings are:
Avlabari, Didube, and Saburtalo:
A 2-bedroom 70-square-meter apartment in Avlabari costs $82,000, while the same size apartment with similar conditions in Didube is $65,000, due to its more difficult access to the city center.
Saburtalo is also a very big area, but apartments there are a bit cheaper than uptown despite the fact that the whole neighborhood has easy access to the underground system, there are plenty of shops around, and most universities are located there.
A 2-bedroom apartment in Vazha-Pshavela, 55 square meters, is sold for $65,000. Of course this is the average price range and you can always find cheaper or more expensive options based on the size of the apartment and how facilitated it is. For example whether or not it has central heating or air conditioning, which floor it is on or it has an elevator.
Rustaveli street and Freedom square are considered the city center, and you can rarely find apartments for sale in these areas. However, there are plenty of apartments available for rent, since the location is favorable to most tourists and foreigners.
b. Studio Apartments
“A studio apartment, also known as a studio flat, a self-contained apartment, efficiency apartment, bed-sitter or bachelor apartment, is a small apartment which combines, many times but not always, the living room, bedroom, and kitchen into a single room.” from Wikipedia
Buying a studio apartment is a good way to start investing in property. It is much cheaper than flats or houses, but it can bring the same amount of benefit. Also, it’s a safe way to test the economy to see whether it is worth your money or not.
Studio apartments in Tbilisi are normally no bigger than 35 square meters, and the smallest ones are 25 square meters. Since they are tiny, with no bedroom, the target clients to rent your studio are often single working-working class youth, mostly because they do not want to spend too much of their income on rent every month.
So, in order to attract more people to the property, studio apartments are usually very nicely decorated, fully-furnished, air-conditioned, with a breathtaking view of the city, if located in a tower.
Since there is not much difference between studio apartments regarding space or size, we have just listed neighborhood and the average price range below:
- Avlabari & Didube: $30,000
- Saburtalo (Vazha-Pshavela): $40,000
- Digomi: $24,000
- Marjanishvili: $37,000
c. Houses and Villas
These two are often confused and it is common to ask whether there is any difference between them. Well, not much, but let’s explain anyway.
A house is an ordinary building where it has a single-story or multi-story feature. Moreover, it has a compound wall around the house. If a rich person builds a house, he might want to have a swimming pool, a garden area and a patio. A house is a building built in a piece of land with a small compound wall or gate.
When it comes to Villa, obviously there are a lot of additional features added to it. For example, villas are always built as groups in a gated community where all the villas have a common gate and each villa has a compound wall separately.
In Tbilisi, there aren’t many villa complexes built, even though there are a few. Most of them are detached houses, duplex houses, or, if located outside the city, country houses. A lot of them are facilitated with swimming pools, gardens, and a lot of other extra features, but they are not villas. They are usually at least 200 square meters and cost more than $100,000. For example, here is a list of some houses in or around Tbilisi:
- Tbilisi, Ivertubani, 178 m2 + 250 m2 yard, 5 rooms, 3 bedrooms, $133,500
- Mtskheta, Mtskheta, 300 m2 + 10 m2 yard, 12 rooms, 5 bedrooms, $205,000
- Didi Digomi, 250 m2 + 600 m2 yard, 6 rooms, 5 bedrooms, $157,000
- Nadzaladevi district, 290 m2 + 300 m2 yard, 6 rooms, 4 bedrooms, $165,000
- Digomi District, 480 m2 + 1200 m2 yard, 8 rooms, 5 bedrooms, $450,000
It seems obvious that in this case, the price only depends on the area/size of the property, and how facilitated it is because most of these houses are far from the center and you can rarely find such properties down town.
2. Commercial Properties
The term commercial property refers to buildings or land intended to generate a profit, either from capital gain or rental income. Commercial property includes office buildings, medical centers, hotels, malls or shopping centers, restaurants, bars, and clubs. https://en.wikipedia.org/wiki/Commercial_property
Investing in commercial property basically means buying a shop, a restaurant, or a bar and then rent it in order to make benefit. Also, it could for your own business. To avoid paying rent every month, it would be a good idea to buy the property instead. In this section, we have provided some information on different types of commercial properties and their price ranges according to where they are located and their size.
When it comes to investing in commercial property, the ones that are specifically designed for the food industry are the most popular one. This is because the growth of tourism in Georgia has been unbelievably fast in the past 10 years and has helped the food businesses become very successful. However, one of the most important factors to the the success of this business is location. That’s why there is a significant difference between prices in the city center and in the suburbs, or even smaller cities near Tbilisi.
The average price for a restaurant near the center is between $1000 to $2000 per square meter. For example a 3800-meter restaurant on the second floor in Saburtalo with 10 rooms and parking space is worth about $5,000,000. However, that is one of the biggest places you can buy in this type. There are other more reasonable options around the town too. Look at some examples below:
- Mtskheta, 1729 m2, 10 rooms, with parking space, $589,700
- Saburtalo, Bakhtrioni st., 80 m2 , 3 rooms, $165,000
- Tbilisi, Didube, 355 m2 , 3 rooms, $420,000
- Vake, 171 m2 , 14 rooms, $230,000
- Mtatsminda, 400 m2 , 4 rooms, $2,000,000
- Gldani District, 750 m2 , 10 rooms, with parking space, $191,900
Also, drive-in and take-away restaurants are becoming increasingly popular in Georgia these days. The good point about this kind of business is that you will need a considerably smaller space than a restaurant, and as a result, you can invest with way less money. We list some examples here:
- Tbilisi, Gldani District, 22 m2 , 2 rooms, with parking space, $11,000
- Saburtalo, Pekini Ave., 30 m2 , 2 rooms, with parking space, $53,000
- Tbilisi, Vazha-Pshavela, 20 m2 , 1 room, with parking space, $10,500
Plus, if you are looking for something different, you can always be innovative with the property you have bought. Take this sky restaurant in Tbilisi as an example. Since its opening in 2018, it has been fully-booked with visitors, tourists, and even locals who are looking for high-quality food and wine, alongside with an extra-ordinary view of the city some 50 meters above the ground.
b. Cafés, Bars, and Pubs
Before you invest in this kind of property, you should know that most bars in Tbilisi are also pubs. It means that you can rarely walk into a place labeled as “Bar” and expect only drinks. This might probably be because of the foodie culture in Georgia, but we do not want to get into that now. What matters here is that, regardless of what you, as the owner, or your tenant label the place, you must anticipate enough space for a kitchen, because customers expect food, wherever they go.
Located in the first floor
In case of cafes, if you are looking for something small, like a take-away place, you can have a look at the section above. But, if you are into something bigger to invest more money in, you should keep in mind that a cozy cafe is always somewhere on the second floor, with a nice balcony with furniture outside. It could also be on the first floor, but don’t forget the area outside for smoking, which is a big deal here, in Georgia. Here are some suggestions for you:
- Tbilisi, Chugureti District, 80 m2 , 1 room, $259,000
- Mtatsminda, 180 m2 , 3 room, with parking space, $470,000
- Nutsubidze st., 100 m2 , 8 rooms, with parking space, $120,000
- Vera, 200 m2 , 2 rooms, $270,000
located in the basement
However, a basement place always makes a nice space for a bar or a pub. As it has to be not too bright, and it doesn’t necessarily need to be on the main street; in fact, it is much better if it isn’t because it is easier to find better deal for investments in this case. For example a basement place in Didube, with the area of 435 square meters, consisting of 5 rooms, plus a parking space is for sale at $320,000. Another 105-square-meter basement in Mtatsminda now costs $128,000, which seems like very good value for money considering the neighborhood.
It is totally understandable why someone might want to invest their money in clubs:
- has become a popular trend in Georgia
- can bring a lot of benefit to the investor or the business owner
- does not need much preparation or decoration
However, you must be aware of two major problems in this case:
- You need a big area for such kind of business, which calls for a bigger capital to start your investment.
- The place has to be in a lively, vibrant neighborhood, with the potential of a lot of tourists visiting there all year long.
These make finding a suitable property for a club very difficult, even though it is not impossible. For example a 500-square-meter whole building with 3 floors and a parking space on Aghmashenebeli street is now on sale for the unbelievable price of $1,500,000.
As you can see, the property is not easy, and is not cheap either!
When it comes to shops and stores, it seems like they are the most expensive type of property in Tbilisi. The average price range in a touristic area like Aghmashenebeli street is between $4000 to $5000 per square meter, sometimes going up to $7000. For example, a shopping center in this neighborhood with 10 rooms, and the area of 2426 m2 is now for sale for $3,200,000. Or a 300-square-meter shop on Rustaveli street is worth $4,000,000.
However, there are always more reasonable deals far from the center of the city available if you keep looking. Here are some examples:
- Saburtalo, Kazbegi Ave., 70 m2 , 4 rooms, with parking space, $125,000
- Saburtalo, Bakhtrioni st., 15 m2 , with parking space, $42,000
It seems like most shops at famous malls like Galleria Tbilisi, East Point, or Tbilisi Mall are only for rent. But, if you are really interested in buying a piece of property in these places, you can contact their offices for more information:
If you are looking for a very profitable investment in Georgia, and especially Tbilisi, a hotel or any type of accommodation that has to do with tourism is definitely something to consider.
Since the independence of Georgia form The Soviet Union in 1991, the government of this country has been trying to promote tourism. It has been wonderfully successful thanks to many different reasons, such as its rich history and culture, unique ancient language, its climate, biodiversity, and topography. Consequently, the country now is one of the top destinations for tourists and backpackers, and tourism is a significant part of the Georgian economy now. In 2016, 2,714,773 tourists brought approximately US$2.16 billion to the country. According to statistics, in 2018, around 8.7 million visitors visited Georgia, 1.4 million of these tourists were from Russia alone.
Why investing in hotels in Tbilisi is a wise decision
Having said all of that, you should keep in mind that all the tourists’ first and basic need is accommodation. Some do tend to go for budget accommodation but that is not our point of discussion here. What matters is that, either to start a business or just invest in property, buying a hotel in Georgia is always a wise decision.
The average price range for a hotel property in Tbilisi is between $1000 to $3000 per square meter. Of course it varies according to location and neighborhood. The closer to city center or tourist attractions, the more expensive it gets. But, as a result, of course there is more chance of making more profit.
A two-floor hotel on Davit Aghmashenebeli avenue with the area of 600 square meters, 116 rooms and a park, is now for sale for $1,800,000. However, you should also consider the fact that Aghmashenebeli or Chugureti District in general is one of the most expensive locations to buy anything in Tbilisi, not just property.
There are also other options or offers available for hotels here listed below:
- Avlabari, Isani District, 520 m2 , 9 bedrooms, price: $650,000
- Vera, Mtatsminda District, 1500 m2 , 4 floors, 15 bedrooms and a park, price: $3,000,000
- Barnovi street,Vera, Mtatsminda, 600 m2 , 4 floors, 18 bedrooms, price: $780,000
- Tbilisi, Saburtalo District, 80 m2 , 1 floor, 6 rooms and a park, price: $160,000
Also, there are some options available in smaller towns around Tbilisi at considerably more reasonable prices. They are worth considering if you do not want to invest a big capital. Here are some examples:
- Lisi, Mtskheta, 900 m2 , 3 floor, 9 rooms and a park, price: $670,000
- Shekvetili, Guria, 570 , 3 floors, 12 bedrooms, price: $250,000
- Rustavi, Lower Lartli, 2990 m2 , 8 floors, 57 rooms and a park, price: $2,428,500
Investing in property in Georgia, especially in Tbilisi, whether residential or commercial, is one the safest decisions to make in order to make more benefit. The economy of the country is still growing, and in the last decade, it has become one of the most popular tourist destinations in the world. Considering the fact that some areas are more expensive than others, there are still reasonable offers available, as mentioned above.
Houses and apartments have great potentials to be rented or even sold after a few years, and so do shops. However, it appears that shops are a little expensive. But don’t forget the possibility of more profit.
Underground and basement spaces are good choices for cafes, bars and restaurants and, since they are often not located on main streets, it is possible to find very good deals in these cases.
Tourism in Georgia has been growing and buying a hotel is a good idea to invest in property. Check the above section for different offers and available options.