What you need to know when buying property in Batumi
Low prices and high rental yields are some of the things that attract many foreign investors to the coastal town of Batumi, Georgia.If you are interested in starting your own business, then you can start by getting an LLC in Georgia. But what do you need to know when you want to invest in the real estate market and make it a success? The following will give you an indication of what you need to look out for.
What are the latest real estate price trends in Batumi?
Real estate prices in Batumi have gone up in spring 2022, with the minimum price per square meter increasing by 3.7%. This means that the minimum price per square meter increased by $28 (from $756 in March to $784 in May). Neighboring towns on the Black Sea coast have seen a negative development. Places such as Gonio (-0,84%), Kvariati (-19,40%), and Kobuleti (-5,50%) all have seen prices go down in the same period. This means Batumi keeps attracting new investors and that prices are likely to increase more during summer.
What are the most popular property locations?
Location is always one of the key indicators when buying a property. When looking for Batumi apartments for sale, the 3 areas with the most construction activity include:
- Batumi Boulevard: This flagship area of Batumi is home to numerous high-rise developments that are located within walking distance of the Black Sea and Downtown Batumi. This rapidly developing area, with landmark projects such as Orbi City, DAR Tower, and Alliance Palace, is one of the most popular areas for investors that aim to rent out their property to tourists.
- Downtown: Located in the very heart of the city and next to the Old Town, this area offers a wide range of amenities and proximity to the main bus and railway stations. Here you will find mainly high-end properties with high rental yields.
- Airport area: Located further from the center of Batumi but closer to the airport, this area offers competitive pricing while still being close to the Black Sea coast. Here you will find not only high-rise apartment complexes but also several villa projects.
What is the handover condition of the property?
When buying a new or off-plan property in Batumi, you should be aware of the differences of handover conditions that prevail on the market. This is important because the handover condition will determine the additional funds needed to make the property operational. The most common ones are:
Black frame finishing: This option comes with the bare minimum of repair works on handover. In most cases, this includes doors and windows, connections to electricity, running water, and in some cases gas, unfinished walls, and floors, and radiators if the property comes with central heating.
White frame finishing: On top of the things included in black frame finishing, this also provides finished walls and floors, electrical wiring and sockets, connection of the wet points in the homes, while also the sewage and the heating are connected.
Turn-key: This includes a full renovation of the property including furniture and devices, making it ready to move in at the moment of handover.
Always check with the property developer which services are included for every type of handover condition, as these may vary for each developer.
What are the payment options?
Project developers in Batumi offer several ways of paying for your property. With a lump-sum payment, you pay for the property at once, which is often subject to a discount from the developer. With an installment plan, you pay for the apartment for a period of time, usually between 1 and 5 years. For this purchase option, you will have to make a downpayment, the size of which is determined by the developer. Furthermore, it is possible to obtain a mortgage from a Georgian bank, such as Bank of Georgia or TBC bank.