Investment Property in Tbilisi

Invest in Real Estate in Tbilisi

Investment Property in Tbilisi
Investment Property in Tbilisi

Tbilisi property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Tbilisi .

Search Map of Tbilisi Investment Real Estate

Tbilisi ( tə-bil-EE-see, tə-BIL-iss-ee; Georgian: თბილისი Georgian pronunciation: [tʰbilisi]), in some languages still known by its pre-1936 name Tiflis ( TIF-liss), is the capital and the largest city of Georgia, lying on the banks of the Kura River with a population of approximately 1.5 million people. Tbilisi was founded in the 5th century AD by Vakhtang I of Iberia, and since then has served as the capital of various Georgian kingdoms and republics. Between 1801 and 1917, then part of the Russian Empire, Tiflis was the seat of the Caucasus Viceroyalty, governing both the northern and the southern parts of the Caucasus.

Because of its location on the crossroads between Europe and Asia, and its proximity to the lucrative Silk Road, throughout history Tbilisi was a point of contention among various global powers. The city’s location to this day ensures its position as an important transit route for energy and trade projects. Tbilisi’s history is reflected in its architecture, which is a mix of medieval, neoclassical, Beaux Arts, Art Nouveau, Stalinist and the Modern structures.

Historically, Tbilisi has been home to people of multiple cultural, ethnic, and religious backgrounds, though it is overwhelmingly Eastern Orthodox Christian. Its notable tourist destinations include cathedrals Sameba and Sioni, Freedom Square, Rustaveli Avenue and Agmashenebeli Avenue, medieval Narikala Fortress, the pseudo-Moorish Opera Theater, and the Georgian National Museum. The climate in Tbilisi mostly ranges from 20 to 32 °C (68 to 90 °F) in the summer and −1 to 7 °C (30 to 45 °F) in the winter.

The financial stability of Tbilisi has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Tbilisi

 

Renting out your Tbilisi buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Tbilisi are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Tbilisi and be prepared to change your initial outlook.
  • Thoroughly research the Tbilisi location with a special emphasis on fringe areas outside the main Tbilisi metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Tbilisi.
  • Ensure that your target investment property in Tbilisi appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Tbilisi provides the secure knowledge that your money is working harder than it would in a local Tbilisi bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Tbilisi, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Tbilisi property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Tbilisi

Flipping property in Tbilisi

 

Flipping property is when we advise clients to buy a Tbilisi property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Tbilisi market has a time to react to the renovation.

 

The Flipping Strategy in Tbilisi

 

Investment property flipping in Tbilisi is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Tbilisi real estate investments are sometimes referred to by professionals as ‘distressed’ Tbilisi real estate.

 

What is distressed Tbilisi property:

 

  • Tbilisi property in need of renovation
  • Tbilisi real estate with a change of purpose and use
  • Oversold Tbilisi property
  • Bank repossessions in Tbilisi

Put simply, long term investors in Tbilisi purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Tbilisi investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Tbilisi property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Tbilisi use a minimum profit value of 22% when looking at potential Tbilisi projects.

 

The reason for this is because there are lots that can go wrong in Tbilisi property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Tbilisi

 

Property Secured Investments is a Private Equity fund that invests in Tbilisi and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Tbilisi

For luxury property investors hoping to add a superb property in Tbilisi to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Tbilisi, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Tbilisi should be entrusted to only the highest-quality agency.

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