Why real estate in Georgia is promising

“Georgia’s real estate market is highly competitive. The focus of clients will be on development companies that prioritize quality and adhere to stringent construction standards, offering more than a product; rather, they offer a lifestyle. Additionally, companies that attract global brands to their projects stand out," says the Petra Group Development Company. The Company was founded by Georgian businessmen - George Svanidze and Mirian Katamadze.

Request for brands and lifestyle

The Petra Group experts note that these two trends - the demand for branded real estate and for the lifestyle - can be traced in the real estate market of Georgia. And the company caught them up, too. For instance, the developer has entered into a partnership with renowned hotel chains such as Sofitel, Pullman, and Radisson Collection for its project, the Petra Sea Resort, which is being constructed along the Black Sea coast. The project encompasses a Swissotel hotel and residence at Petra Ski Resort in the ski resort of Gudauri, and a hotel and residence under the Radisson Collection brand in Borjomi, at the "Composers' Resort."

Clients' requests for lifestyles in practice are driving an increased interest in mixed-use complexes. "We strive to design multifunctional projects with cutting-edge infrastructure. A case in point is King's Garden in the Old City of Tbilisi, which will feature a fitness club operated by a global chain, a swimming pool, a branded restaurant, and a beautiful terrace where visitors can relax during the summer months. This lifestyle is at the core of our approach. At our resort projects, such as the Petra Sea Resort in Batumi, the Petra Ski Resort in Gudauri, and the Composers' Resort in Borjomi, residents will have all the amenities they need without having to venture outside. These projects offer a complete range of services and facilities, including meeting spaces, retail outlets, and entertainment options, all conveniently located within the same complex.

From the seashore…

Petra Group is a recent entrant in the Georgian market. It was established in 2023 with an investment of US$500 million with the objective of developing new concepts of resort real estate in Georgia and filling the market with high-end properties and a high level of service.

The company's first project, the Petra Sea Resort, is a resort situated on the first line of the Black Sea, just 15 minutes from Batumi. The project, which has received a significant investment of US$236 million, is on track to be completed within six years. The project will encompass a multifunctional residential complex, comprising 42 residential buildings with 5,000 apartments and a five-star hotel with 150 rooms, spread across a 27-hectare site. The company has stated that the infrastructure and recreation area will occupy 70% of the site. Construction has already commenced on the first two towers of the Petra Sea Resort, with plans to begin construction on an additional 11 buildings in the near future.

Apartments in the Petra Sea Resort are priced from US$70 thousand to US$150 thousand. The Petra Group collaborates with renowned architects, engineers, interior designers, and consultants from Spain, France, Poland, and Turkey, and has established partnerships with leading brands in the restaurant, spa, fitness, and retail sectors. The resort will feature a premium yacht club. Consultants from France are assisting in its development. The club will be constructed and managed in accordance with Gold Anchor standards, a globally recognized certification for yacht clubs.

…to the Old Town

The company has announced another development project: the King's Garden residence in the Old City of Tbilisi. The project encompasses three distinct components. Construction of the first building is nearing completion. Prices for the residences are set at 5,500 euros per square meter. The price per square meter for the second block, which commenced construction a few months ago, is 6,000 euros. The Company anticipates a growth in real estate prices in Georgia, with a projected increase of 100% over five years for a square meter in this project. The project will also feature premium brands. Agreements have already been made with prominent entities such as the World Class Deluxe fitness chain and Aromateque, a specialized perfumery.

“No one has the right to build anything near King′s Garden,” the developer claims. When they are asked “why?” the company explains: “The very location of the residence warrants it.” The project is situated in the historic center of the city on a hill. The site is proximate to a Botanical Garden on two sides and historic bathhouses within the neighborhood. Construction is currently underway on the hill below, but projects by other companies will no longer be located precisely where King's Garden is situated.

Why Georgia is interesting

There are no barriers or real estate taxes for foreign buyers and international investors in Georgia. “Kazakhstan citizens can buy and register their right to real estate in the same way as Georgian clients and, besides, they can use mortgage loans on the same terms as Georgian citizens,” Petra Group continues.

The company assumes that 85-90% of buyers in its projects will be foreigners. “Georgia is loved for its beauty, friendliness, climate, gastronomy. For example, we count on clients from CIS countries in Petra Sea Resort. Clients from the Middle East countries - UAE, Saudi Arabia, Qatar and Kuwait - already show high interest,” the company says. Buyers who have the opportunity to purchase one or two apartments are interested in the projects. Some “pick up” floors, viewing their purchase as an investment. “Since the launch of Petra Sea Resort, the price has already almost doubled,” comments the developer. Petra Sea Resort has an investment return of approximately 12% per annum.

There is another point that Petra Group experts draw attention to: “Real estate prices in Georgia are more democratic if we compare them with prices for square meters in Europe. That is why people from different countries buy real estate in Georgia, and then rent apartments at European prices”.