Georgia Real Estate Attracts Global Investors with High Yields and Favourable Policies

Georgia is gaining traction as a prime destination for international real estate investors, moving beyond traditional markets like Dubai and European capitals. The country's appeal stems from a combination of strong economic fundamentals, an expanding tourism sector, and investor-friendly policies.

Economically, Georgia recorded 9.4% GDP growth in 2025, with the IMF projecting continued strong growth through 2030. International reserves hit a record $6.2 billion in 2025 and are expected to exceed $7 billion by the end of 2026. The real estate market mirrored this growth, with total primary market transaction value increasing from $820 million in 2019 to $2.497 billion in 2025. Transaction volumes reached 78,500 in 2025, up 6% year-on-year, and are forecast to rise by another 14.5% in 2026, alongside a projected 13.2% price growth.

Tourism is a significant driver, contributing approximately 13% of Georgia's GDP. Tourism revenue reached $4.69 billion in 2025, projected to increase to $4.9 billion in 2026. This growth fuels rental demand and property appreciation.

Georgia's tax structure is particularly attractive, featuring:

• Zero capital gains tax on property held for over two years.
• Zero purchase tax on acquisition.
• A flat 5% tax on residential rental income.
• Negligible or non-existent annual property tax for most investors.

Batumi real estate, for example, posted 11% yields in Q1 2026, significantly higher than Dubai's 5.5% and European capitals' 4.8%. Foreign ownership is fully unrestricted, allowing international buyers 100% ownership of residential, commercial, and mixed-use properties with identical legal rights to Georgian citizens. Property registration is swift, completing in one to four business days at a cost under $100. Since March 2026, a real estate investment of $150,000 or more qualifies investors for a renewable Georgian residence permit.

Alliance Group, a key developer in Georgia, has delivered over 25 projects, investing more than $2 billion in the country's real estate and tourism infrastructure. Their portfolio includes projects like Alliance Highline in Tbilisi (partnered with Wyndham Grand, guaranteed 6-10% annual ROI) and Alliance Centropolis in Batumi (projected 12-15% annual ROI).