Real Estate For Investment: What is it and the Interesting Opportunities that Tbilisi Offers

Tbilisi’s real estate market has noticeably changed over the last few years. Just between 2023 and 2024 alone it saw a 10.3% increase, growing from USD 2.6 billion to USD 2.9 billion. Both local and international buyers have noticed the rapid growth and started considering purchasing property not just for residential purposes, but as an investment.

Many of them tend to ask practical questions before signing on the dotted line: what type of property is worth investing in? What should we pay attention to before buying? Which investment strategy makes the most sense for beginners?

In the article below, Maqro Development intends to answer these questions in-depth and share practical recommendations, supported by specific market data.

What Does it Mean to Invest In Real Estate?

Real estate for investment is the type of property that you mainly buy to generate passive income or grow in value over time, rather than to serve as a place of long-term personal residence. An investor may earn monthly income by renting out the space, or they may wait for the property’s value to rise and sell it later at a profit.

Globally, real estate is seen as one of the most reliable and stable investment assets. Unlike stocks or bonds, property is a physical asset. The owner can manage it directly and influence its value through cosmetic or major renovations, energy-efficient upgrades, or by improving the building’s shared infrastructure.

Still, despite its proven stability, investing in real estate is not completely without risks. New owners need to consider market changes, possibility of prolonged vacancy, and unexpected repair costs. Before purchasing real estate for investment you need to properly prepare and run through multiple scenarios. And one of the first steps of minimizing the risks is choosing the right type of property.

Main Types Of Investment Property

Buying residential property is one of the most common forms of real estate investment. In this case, the investor buys an apartment or even a house with an explicit purpose of renting it out. This model aims to provide steady monthly income, but also means regularly dealing with tenants and taking care of the property on an ongoing basis.

Commercial spaces, such as offices, shops, and warehouses, are also considered good pieces of real estate for investment. If properly run, they can bring higher returns. However, they also usually require a larger initial investment.

In large touristy cities like Tbilisi, buying real estate to rent it out short-term has also become a rather popular strategy of real estate investment.

Another option is real estate investment groups, known as REIGs, and real estate investment trusts, known as REITs. Under this model, investors put capital into companies that own, manage, or finance large income-generating properties. The investor buys shares or stakes in these organizations, becomes a co-owner of the assets in the portfolio, and subsequently receives the dividends. This approach can be particularly convenient for beginner investors, because the management company handles property maintenance, renovation, and tenant relations. Even so, this is currently not a particularly popular strategy in Georgia.

What Makes Tbilisi An Attractive City For Real Estate Investment?

Georgia’s liberal tax policy is one of the prime reasons for the capital’s rapid raise in popularity among real estate investors. Individuals owning real estate are practically exempt from property tax (or have to pay a minuscule amount), while rental income is taxed at only 5%. Georgia also ranks 7th among 190 countries worldwide for ease of starting a business. Free trade agreements with the European Union, China, and other strategic markets make the country even more attractive from an investment point of view.

As for Tbilisi, the capital is the country’s economic center and a home to almost one-third of Georgia’s population. It also has the biggest expat population. According to 2024 data, 80.5% of foreign direct investment went to Tbilisi.

The return indicators also look promising. In 2024, the average ROI in Tbilisi was 10%, while the average rental price reached $10 per square meter. In Maqro Development projects, specifically, these figures have been higher: ROI has reached up to 15%, while rental prices exceed $15 per square meter.

Which Investment Strategy Works Best In Tbilisi?

What the right investment strategy is largely depends on the market and the buyer’s goals. There’s no singular approach that works for all cases. In Tbilisi, investors should consider several options and settle on the one that fits their goals best.

A long-term rental strategy means buying an apartment and renting it out for an extended period. This model gives investors stable, predictable income. It works especially well if the rental property is located in a central district with good transport links, where public services and commercial spaces are within walking distance.

Another option is hotel-type investment, which focuses on short-term rentals for tourists and business visitors. In Tbilisi, where tourist flows stay stable and high for most of the year, this approach can generate strong returns over all four seasons. However, it also requires the investor to put in more time and resources, as they need to be directly involved in managing, cleaning and maintaining the property, as well as actively communicating with guests. Running a short-term rental is not as passive an income, as the long-term one.

The third common strategy focuses on capital growth. This means buying apartments under construction at an early stage and selling them for profit after the project is completed. This approach can lead to a significant capital growth, but it also requires good market knowledge and working exclusively with reliable developers who have a proven track record of success.

When it comes to a versatile multi-functional complex like Maqro City Tbilisi, investors have more freedom to choose the strategy that best fits their goals and offers the most attractive return. The project includes both residential and hotel-type spaces. When investing in hotel-type apartments, the buyer has the security of Mövenpick Living brand name and infrastructure, including reception services, a restaurant, a fitness hall, and a spa center. This variety is one of the reasons the project appeals to investors with different plans and priorities.

What Makes Maqro City Tbilisi Stand Out as a Real Estate Investment Opportunity?

It’s not just the flexibility to suit different investment strategies that makes Maqro City Tbilisi attractive for real estate investors. There are several other factors that play a crucial part in driving the investment appeal.

First of them is the location: it’s a modern residential complex in Tbilisi being built in one of the city’s most promising and rapidly developing districts. Noah Ramishvili Street is a 5-minute walk from Samgori metro station, while Tbilisi airport is just 10 minutes drive. The city center is about 15 minutes and East Point shopping mall is only 5 minutes by car. With infrastructure development active and more projects planned for the future, the investment potential is well-positioned for growth. One such large infrastructure project is, for example, the plan to directly connect the Kakheti highway to the city entrance. Another is the construction of a new international airport.

The project’s scale also plays a large role. The complex consists of 17 buildings. There are 4,000 residential apartments. Out of the 100,000 square meter territory, the recreational areas take up almost half at 45,169 square meters. The complex territory has 4 swimming pools, 3 tennis courts, 2 basketball courts, running paths, and cycling lanes. The complex also has indoor and outdoor fitness areas, a kindergarten, and playgrounds. The variety helps increase rental demand.

Another advantage of investing in Maqro Development is that the buyers get move-in ready apartments. The developer hands the residential units over after installing laminate flooring, underfloor heating, painted walls, kitchen furniture, and built-in appliances, including a stove top, oven, and extractor hood. Bathrooms are also fully equipped. For investors, this means the property can be sold or rented out right away, without extra renovation costs.

And as purchase terms go, it’s easy to invest in Maqro City Tbilisi. The investors can buy an apartment with 0% internal installment or pay fully in one go. The minimum down payment is 20% of the property value, and a 15% discount applies if you pay the entire apartment price outright.

Real estate investment is a broad and complex field, but it offers strong potential. Tbilisi’s market creates favorable conditions thanks to its growing dynamics and investor-friendly tax environment. Maqro City Tbilisi is a new project by Maqro Development that aims to be a comfortable investment opportunity for both new and seasoned investors.

If interested, get in touch with the company’s sales office and a company representative will provide detailed information on any matter of interest.