Real estate in Georgia as an alternative to bank deposits

Real estate in Georgia as an alternative to bank deposits 🏡💡

For many savers, low bank interest rates and rising inflation make real estate an attractive alternative. Georgia offers relatively straightforward property laws for foreigners, a growing tourism sector, and diverse market opportunities — from seaside apartments to city rentals. This guide explains when property can be a sensible alternative to deposits and how to approach it responsibly.

Why choose property over a bank deposit?

• Inflation protection: property values and rents often move with inflation.
• Diversification: real estate behaves differently from cash and securities.
• Potential passive income: rental returns if managed well.
• Value-add opportunities: renovations can increase asset value.

Pros and cons at a glance ✅⚠️

Pros:

• Tangible asset you can use or rent out.
• Potential for capital appreciation in sought-after locations.
• Relatively simple ownership registration and transparent practices in many cases.

Cons:

• Lower liquidity: selling property takes time compared to withdrawing a deposit.
• Ongoing costs: maintenance, management fees, taxes and utilities.
• Market and regulatory risks tied to the local economy.

Where in Georgia to invest? 🔍

• Batumi and other coastal towns: strong seasonal tourism demand and short-term rentals.
• Tbilisi: steady long-term rental market with year-round demand.
• Regional or rural properties: options for agritourism or lower-cost entry.

Decide whether you want higher seasonal yields (tourist rentals) or stable year-round income (long-term leases).

Financing and tax considerations 💳📋

• Cash purchases simplify transactions, but local mortgages are available; compare terms carefully.
• Understand taxes on rental income, property ownership costs, and any capital gains rules. Laws change, so consult a local tax advisor.
• Consider currency risk if your income or financing is in a different currency.

Practical checklist before buying ✔️

1. Define your goal: rental income, capital growth, or personal use.
2. Study the neighborhood: demand, infrastructure and transport connections.
3. Check legal status: title deeds, encumbrances, building permits.
4. Estimate running costs: management, repairs, utilities, insurance.
5. Decide on management: self-manage or hire a property manager.
6. Plan an exit strategy: resale timeline and market conditions.

Investment strategies — examples 📌

• Short-term / tourist rentals: potentially higher seasonal returns but higher management needs.
• Long-term rentals: stable cash flow with lower turnover and operating costs.
• Renovate and resell: active strategy to increase value through improvements.

Risks and how to reduce them

• Diversify across property types or locations.
• Work with licensed agents, lawyers, and property managers.
• Use conservative income assumptions and build reserves for unexpected costs.

How BuyHome can help 🤝

BuyHome assists with market research, object selection, legal checks, and property management. We prepare a personalised plan based on your budget and goals and guide you through financing and tax questions. Browse available listings at https://buyhome.ge/en/search and contact us for tailored advice.

If you’re considering real estate as an alternative to bank deposits, we can help evaluate opportunities and risks and find the right property for your strategy. Get in touch — we're happy to help you choose and buy with confidence. 📞