Steps for Buying Property in Georgia:
1. Choose the appropriate property and verify its legal status. 2. Sign a reservation contract and pay a deposit (usually 10%). 3. Conduct legal verification to ensure the property is free of any obligations. 4. Sign the final sales contract with a notary. 5. Register the property in the property registry under the buyer's name. 6. Pay registration fees, which amount to about 1% of the property value.
Risks and Challenges in the Georgian Real Estate Market:
- Fluctuations in the local currency (Lari) exchange rate against the dollar.
- Significant variation in construction quality between real estate developers.
- Difficulty in obtaining bank financing for foreign investors.
- Cultural and language differences that may hinder communication with local parties.
- Potential changes in real estate laws and regulations.
Tips for Successful Investment:
- Conduct a preliminary visit to Georgia before making a purchase decision.
- Use a local legal advisor to review contracts and ensure safe procedures.
- Deal with reputable real estate companies and developers.
- Focus on strategic locations that ensure easy rental and future value appreciation.
- Study future development plans for the target area.
- Use professional property management companies if the investor doesn't reside in Georgia.
