Investing in Commercial Real Estate in Georgia

Why consider Georgia for commercial real estate? 🇬🇪

Georgia offers a business-friendly environment, relatively simple property registration and diverse market opportunities from retail and offices to hospitality and logistics. For investors seeking growth markets with transparent processes, Georgia can be an attractive option when approached with careful due diligence.

Main commercial property types

• Retail — street-facing shops and units in shopping centers.
• Offices — small business spaces, co-working, and office buildings.
• Hospitality — hotels and aparthotels, especially in coastal tourist zones.
• Logistics — warehouses and distribution centers near transport hubs.
• Mixed-use developments — combined residential and commercial schemes.

Regional markets — what to inspect 🔎

• Tbilisi remains the largest market with steady demand for offices and retail.
• Batumi is notable for tourism-driven hospitality and seasonal retail.
• Secondary cities can offer value for industrial, storage and local retail projects.

When choosing a location, assess accessibility, planned infrastructure, and tenant profiles.

Legal and tax basics — practical advice

• Foreign ownership is generally permitted; always confirm title and encumbrances in the public registry.
• Tax treatment depends on property use and ownership structure — consult a local tax advisor.
• Special permits may be required for hospitality, food services or industrial use.

Assessing returns and risks 📊

• Estimate returns considering realistic rent, vacancy, operating costs and reserve for maintenance.
• Typical risks include economic cycles, seasonality in resort areas and zoning changes.
• Model different scenarios (base, downside, upside) to understand potential outcomes.

Financing and deal structure

• Options include personal capital, local bank financing, developer arrangements or JV structures.
• Lenders assess borrower profile and property type; keep contingency funds for unexpected expenses.
• Ensure sale agreements include clear warranties, timelines and transfer protocols.

Asset management — where value is created

• Professional property management improves occupancy and tenant retention.
• Consider partnering with experienced operators for hotels or retail centers.
• Implement preventive maintenance and regular inspections to protect asset value.

Due diligence checklist ✅

1. Evaluate the site: footfall, competitors, transport and visibility.
2. Verify legal title and check for encumbrances in the registry.
3. Build a conservative financial model including taxes and fees.
4. Inspect the building condition and estimate capex needs.
5. Define exit options: sell, hold for rent, or reposition the asset.

Investment strategies — examples

• Buy-to-let: steady rental income from retail or offices.
• Value-add: renovate and re-lease or convert property to a different use.
• Development participation: invest in projects during construction for capital growth.

Final recommendations

Commercial real estate investment in Georgia can be rewarding if based on comprehensive research and local expertise. Start with market analysis, a solid financial plan and a reliable local team: lawyer, valuer and property manager.

If you'd like help finding and assessing commercial properties, our team at BuyHome can organize viewings, legal checks and deal support. Visit our search to start: https://buyhome.ge/en/search or contact us at https://buyhome.ge/en.