Background

Georgia is the most active economic center in the region, with a liberal tax code, corruption free government, and significant opportunities for foreign investment. It provides a highly supportive business environment. At the crossroads of Europe and Asia, Georgia borders Turkey, Armenia, Azerbaijan, and Russia. The country occupies an area of 69,700 square kilometers (sq km) and is home to a population of 3.7 million people. The country’s land borders run a length of 1,839 kilometers (km), while the Black sea coastline is 315 km. During last two decades, Georgia has implemented large-scale reforms that have led to political and economic transformation. It has strengthened its democracy and furthered its relationship with the European Union (EU). Georgia has also made business development within the country a top priority through encouraging entrepreneurship, attracting private investments, and shifting tax incentives, thereby positioning itself as an attractive option to the international business world. With its unique cultural heritage and exuberant hospitality, Georgia’s tourism industry continues to grow and thrive, further bolstering economic growth.

 

Rich Natural and Cultural Resources

Distinctive among the world’s nations with its biodiversity, Georgia boasts rich natural and cultural resources and is home to more than 12,000 historical and cultural monuments, four of which are included in the list of UNESCO World Heritage Sites.

 

Georgia is ongoing success

Real Estate and Hospitality are one of the fastest growing sectors of Georgian Economy. Over the recent years Georgia has seen a dynamic growth of international visitors, in 2015 the number of international visitors reached 5.9 million while the population of Georgia is 3.7 million people and between 2016 and 2017, Georgia recorded the world’s third-highest growth rate in visitor numbers.

 

Continuous Increase of International Visitors

According to UNWTO (World Tourism Organization), among European countries Georgia had one of the highest growth rates of international tourist arrivals during last three years. The average annual number of international travelers from 2007 has been increasing by 23% yearly and is expected to grow more during the next five years.

 

Regional Center

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. Georgia has Visa Free Regime with Citizens of 94 countries and additionally holders of valid multi visas or/and residence permits of 50 countries may enter and stay in Georgia for 90 days within one year period. 

Tbilisi is the capital of Georgia and the key destination for tourists and business travelers. The city has remarkable historical heritage and different tourist attractions.  The number of multinational companies operating South Caucasus and CIS headquarters in Tbilisi is increasing steadily, which ensures Tbilisi’s position as a regional business hub.  The city benefits from growing international, regional and local visitors. Over the last 5 years, hotel annual occupancy rates in Tbilisi have been above 70%.

In 2017, 235 residential projects were completed in Tbilisi and Batumi.

Tbilisi, the largest contributor of residential supply in Georgia, completed about 200 development projects in 2017, comprising 11,160 residential flats in total. In the last decades, this is a record number of completions occurred on the residential market. Completing 35 residential projects, Batumi was the second largest contributor of large-scale developments in Georgia. Currently, developers are working on additional 600 residential projects in total. It should be noted that about 45% of Tbilisi’s residential construction work is being done by small-sized developers, while in Batumi large developers are doing the majority of work (64%).