Things to Consider When Investing in the Georgia Property Market


Are you thinking of investing in Georgia real estate market? The industry has been performing impressively in the last decade, and you are likely to reap impressive returns if the trend continues. For example, apartment sales recorded high growth in 2018 and 2019 before slowing down in 2020 because of the COVID-19 pandemic. So, should you join the market as an investor? To make your decision about investing in the Georgia property market, here are the main things to consider:

The Demographics

This is a category of data that shows the composition of a country’s population. It involves looking at data related to gender, income, age, race, population growth, and migration patterns. This information can help you to determine the potential of the Georgian people to buy or rent your property. Take the example of baby boomers. If you notice there is a high population of baby boomers, it implies that most of them are heading to retirement.

So, you should identify the main population and ask these questions, “How is this population likely to impact the property market?” and “What is the preferred property type for the biggest population?”

Interest Rates

The interest rates play an important role in the property market. As an investor, it is important to take a closer look at these rates because they determine the overall returns you are likely to get on your investment. Therefore, you should target to identify the properties that attract lower interest rates or use strategies that push the cost low. For example, you might want to focus on the emerging but high-potential urban areas. If you want to bank financing to acquire property, consider clearing the loan within the shortest time possible because the cost will be lower.

Economic Performance

Another factor that greatly impacts the price of properties is the health of the economy. You can gauge this by looking at the main economic indicators such as manufacturing activity, employment data, inflation, and GDP. So, let us take a closer look at the Georgian economy. How did the Georgia economy perform over the last two decades?

For the bulk of the 20th century, Georgia was under the Soviet-type of economy. However, the country has shown significant growth since the fall of the soviet early in the 1990s. In 2007 the country’s real GDP hit 12%, making it one of the fastest-growing economies in Eastern Europe. By 2019, Georgia had improved further and was ranked number six on the World Bank’s ease of doing business report.

As you can see, Georgia is a country with huge potential, and more people are taking note. Indeed, most sectors of the Georgia economy are growing exponentially, making it one of the best places for real estate investors. Whether you want to invest in buy-and-hold property, rental or commercial property, Georgia is an emerging market and is likely to deliver high returns on investment. To get even more from real estate investing, consider working with professionals, such as John Dodelande.