With the rise of the pandemic and its implications for businesses in Europe and North America, a lot of people are looking beyond their national borders for future investment. While the health crisis of 2020 remains a thriving issue in most countries around the world, there are a few countries that managed to take the situation under control.
One of these places is Georgia, which is a small country in Caucasian mountains with a lot of potential. Before we get to why this country has so much to offer to foreign investors, let’s take a deeper look at what concerns most of us these days, the Coronavirus.
The following table shows how the Georgian government managed to flatten the curve and keep the numbers down.
Number of positive case
|Number of Deaths||3||15||
Before getting to more reasons why this is an ideal place for investment, let’s learn more about the country.
Georgia, the Caucasian Bride
Georgia or Sakartvelo, as referred to in the local language, is a small country in the southern border of Russia and in the heart of Caucasian mountains. It is located ideally between central Asia and eastern Europe. The capital Tbilisi is one of the most vibrant cities in the region. Georgia has been considered as the one of the most successful countries that used to be part of the Soviet Union.
Things to Know Before You Start Investing in Georgia
The government’s control of the pandemic is not the only reason that makes this country very special. It is a small but unexplored country that is growing very fast, thanks to open border policies and lenient business development regulation. Let’s have a closer look at some of the reasons Georgia is your next investment destination:
Georgia is among the safest countries in the world
It is actually so safe here in Tbilisi that you see people parking their cars outside and shop windows are never boarded with bars and fences, not even banks. The police are effectively present, especially in the capital Tbilisi.
Georgia has the one of the best business regulations
Starting a business happens very fast in Georgia, and you can simply register a company in a day or two. In fact, Georgia is the 6th country in the world, ranked by Ease of Business Index. The government has considered several exemptions for foreigners to welcome more investors.
It is popular for tourists
Being the country of perfect food, amazing wine and a lot of unexplored natural habitats, Georgia has welcomed millions of tourists in the last few years.
Open Border Policies
We may not consider this a regular rule now given the situation with the health crisis around the world, but before the pandemic hit, people from over 95 countries could visit Georgia without the need for a visa. Most visitors can stay from 3 months up to a year.
Georgians are good company
Georgian people are probably of the most hospitable people in the region. They always have a way to entertain themselves and their guests through their fascinating cuisine and wine. They love dancing and overly come out as very calm and collected. As a result, they are very friendly and open to foreigners.
This could go on. Now, let’s check out some of the potentially lucrative investment opportunities in this beautiful country
Investment Opportunities in Georgia
Winery and Cheese
Georgians make some of the best wine in the world. They have a variety of climates in which a wide range of grapes grow, some of them specifically grow in Racha, Svaneti and Kakheti regions and you can’t find them anywhere else in the world. In 2018 only, Georgia exported over 80 billion GEL worth of wine.
What makes this a great business opportunity is that there are very little packaging and distribution technologies in place and as a result, Georgian wine could not compete with western European wines in the global market, despite the fact that the quality remains relatively the same.
Geogian population stands at around 4.5 million people as of late 2019 and there are very few cities here. The rest is intact natural beauty. From Swiss looking plains of Svaneti to Ski resort in Gudauri, this country is thirsty for resorts and ecotourism facilities. It is also a popular destination for backpackers and a walk in the capital Tbilisi will prove this notion.
Industrial Real Estate
Georgia is a fast-growing country and the need for prime industries like food and packaging is on the rise. Given the small size of the country and the fact that most of it is mountainous, industrial lands are quite a rare commodity and are likely to skyrocket in value in the coming years.
Another particular investment opportunity is to bring service companies to Georgia. The cost of labour, electricity and internet is very low in Georgia. Given the fact that you can start a business quickly, an international service company might be worth investing in.
Residential Real Estate
The list brings us to the most important and lucrative area of investment in Georgia. Since the country is growing fast and it always welcomes a lot of foreigners, real estate has been a great force of the economy recently. As we get closer to a post pandemic era, a lot of foreign entrepreneurs are eying Georgia.
Why Should Every Foreigner Consider Real Estate Investment in Georgia?
We already established a couple of reasons about the ease of doing business in Georgia. Now real estate investment particularly benefits from those advantages. It is very easy to form contracts and you can sign deals in a matter of hours.
Also, there are thousands of relatively older buildings in the capital city of Tbilisi and the beach city of Batumi, and they are fantastic places for BRRRR investors to get started with. Banks also work well with the international banking system and Georgia is benefiting from several EU monetary services in spite of the fact that it is not yet a part of the Union.
In addition to all of this, Georgia is growing in population, both internally and externally. A lot of foreigners come to Georgia for tourism, investment and peaceful life and this calls for a lot of real estate. There will be rising demands for hotels, shopping centres and other amenities.
Global economy and politics have been seriously affected by the events of year 2020. The pandemic imposed several restrictions for travel and businesses around the world. This has pushed a lot of investors or future investors for that matter, to be highly motivated to find new places to earn money.
As we discussed fully above, Georgia poses as a great future investment destination, and real estate investment is particularly the most paved path to building wealth.
How can Sterling Help you?
Sterling Property Advisors is a real estate investment company staffed with some of the most experienced investors and entrepreneurs from Europe and Dubai. The company’s vision is to build a life of financial independence for everyone through real estate, and they could not find a better place than Georgia.
Contact us today and let us help you kickstart your investment in Georgia and explore your options.