Real estate and hospitatlity

Country overview

Georgia is Stable economic and political market, and a safe country to invest in. This stable and secure country has an extremely well-functioning business environment. In the recent Doing Business 2020 report by the World Bank, Georgia ranks 7th out of 190 countries on the "Ease of Doing Business" criteria. It sits alongside developed markets, such as the US, Singapore, Denmark, Norway and the UK, among others. Georgia is featured on the list of 10 top improvers for three consecutive Doing Business cycles.

Numbeo, the world’s largest cost of living database, has released its Crime Index by Country 2020 in which Georgia is the world’s fourth safest country and the safest country of Europe. Georgia took fourth place among 133 foreign states and improved its ranking by two points compared to last year.

Location Overview

Georgia is a regional center located on the shortest route between Europe and Asia. International visitors enjoy easy access by three international airports (Tbilisi, Batumi, and Kutaisi), modern railway and visa liberalization system. Citizens of 98 countries can travel to Georgia without a visa and stay up to one full year. In addition, foreigners who hold a visa/residence permit of 50 countries can enjoy visa-free travel to Georgia.

Hotel Market

The hotel industry in Georgia comprises approximately 33,460 rooms. The supply is expected to increase roughly by 7K new rooms by 2024.

The supply of Tbilisi and Batumi hotel rooms has increased significantly during the past few years. In 2019, the total number of hotel rooms in Tbilisi increased by 23%, amounting to 12,430 units. Batumi’s supply rose to 6,341 rooms, reflecting a 13% increase. Taking the pipeline into consideration, these two cities will remain Georgia’s top suppliers over the next five years.

Substantial growth of the Georgian hotel market is expected during the next few years. Several major international brands will open hotels in not only Tbilisi and Batumi, but also in Kutaisi, and Georgia’s seaside and mountain resorts.

The first internationally-known midscale brand, Best Western, already opened a 45-room hotel in Kutaisi. Another international brand, Ramada Encore, is expected to open a hotel in Kutaisi in 2021, adding another 124 rooms. Internationally-branded hotels have not entered Batumi’s hotel market since 2017. But the number of international hotel rooms is expected to grow by 1,600 units by 2024. Today, internationally-branded hotel rooms represent 21% of Tbilisi’s total supply. There are 18 international hotels in the current pipeline with a total investment volume of approximately USD 700 million. 

Residential Market

In 2019, around 198 residential projects were completed in Tbilisi. In contrast with the previous year, that number fell by 4%. Delivered residential developments in total comprised 15,257 flats added to the market. Around 2 million sq m of residential area is expected to be added to the city’s supply. Batumi is the second largest contributor to largescale developments. In 2019, 19 residential projects were completed and an area of 237,098 sq m was added to the supply, meaning a 21% decrease compared to 2018. Currently, developers are working on an additional 100 developments in total. In 2019, 10 development projects were completed in Kutaisi, which enlarged the city’s supply by 37 K sq m. The figure has more than tripled compared to 2018.