Full legal support and facilitation between the investor and the government of Georgia on the project: land for a hotel complex in Dzevri (Imereti)
The good news is privatization auction in Georgia will be extending to 2020 as well. For the period of two months since its launch, several attractive real estate properties have already been acquired by investors. To complement the sold lots, the Georgian government put up several other attractive properties on the auction list; one of the lots is a land plot with building structures on it, in the village of Dzevri, municipality of Tkibuli. The location of the object is particularly suitable for the construction of a hotel complex.
The auction is attractive not only in terms of remarkable items of property offered in Georgian real estate market, but also in view of the comprehensive assistance by the state throughout the entire purchase process. The Government of Georgia has in advance taken care of a range of issues such as expert assessment, outlining and easements, and it is also committed to ensure an accelerated process of privatization. Yet, however favorable these conditions may be for an individual, the purchase process may still encompass some challenges if you wish to undertake it on your own without external support. For example, at some point you will need to have some knowledge of Georgian law as well as Georgian language, in order to solve various legal issues, and this may be a time-consuming task to accomplish at the given timeframe. Instead, it is much more expedient to organize legal support of the investment project with the help of a professional company.
Offshore Pro Group, with long years of experience in the Georgian market, is supported by highly skilled Georgian lawyers who are well versed in local legislation. They will be happy to provide their high-quality legal support throughout any project for the purchase of real estate in Georgia at privatization tenders. And if necessary, we may also set up a high-level meeting session so that investors have the opportunity to discuss important issues related to the acquisition of objects at auction directly with the relevant government bodies. The cost of our services is The cost of our services is from 3 000 EUR.
Investing in Georgian Hotel Real Estate: introduction to the land plot in Dzevri
A lot was introduced at an auction in Georgia in January 2020, that aroused significant interest among businesspeople involved in the hotel business or planning to start developing in this direction:
Two non-agricultural land plots in Dzevri (municipality of Tkibuli), with an area of 66 931 and 54 967 sq.m. each, with buildings constructed on it
The advantages of the hotel business are evidenced by the fact that the number of hotels in Georgia is growing rapidly. According to Sakstat (Georgian statistical service), from 2008 to 2018. their number increased from 353 to 1,639 units (+ 364%), and the number of rooms: from 8,582 to 33,186 (+ 286%). In addition, almost all international hotel brands have opened their hotels in the country and continue to expand their presence in the regions.
The growth of tourist flow to Georgia contributes to the development of this business line. Thus, over the past 5 years, the number of foreign travelers has grown by more than 50%, and in 2019 exceeded 9.3 million.
Investing in Georgia: getting to know the region
The municipality of Tkibuli, where the lot for sale is located, is a part of the historical region of Imereti. The economy of this region is mainly based on coal industry and agriculture. Coal reserves in the municipality are estimated at around 1 billion tons, but practically no production is carried out. Only 2 mines and 1 enrichment plant are in operating mode. These enterprises employ about 1,000 people. Tea is also grown in the region, also there are two hydroelectric power stations located here: Tkibulskaya and Shaorskaya.
The most famous historical attractions of the region for tourists are:
- Gelati monastery complex – built by the Georgian king David Agmashenebeli in the XII century, it is picturesque compex with its frescoes, and almost all Georgian kings are buried here. Tbhe complex is included in the UNESCO World Heritage List;
- the medieval monastery of Motsamet (Saints David and Constantine) – an active monastery of the XI century;
- Tsutsvati fortress.
The region is rich with many historical sightseeing sites and monuments, which have been gaining interest only recently, with rapid growth of tourism industry in the region. The monuments became the focus of attention: they were renovated, restored, illuminated, received coverage by mass media. And still, the gorgeous nature is the key factor which makes the site so popular among toursits: mountains, forest, caves (in Tsutsvati, in Dzevri, in Navenahevi), as well as the Tkibul reservoir. Therefore, hiking tourism in the local mountains and hotels is increasingly gaining momentum.
Viticulture and winemaking in the region are only emerging, but have enormous potential, as the tourism sector of the country, in general. Specifically, Rachin Mountains have recently become preferred destination for tourists.
The village of Dzevri is located on the Dzevrula River, 250 m above sea level. The road connecting the two regional centers of Terjola-Tkebuli passes through the village. Dzervi is known for its karst caves, which are located in the vicinity of the village and are considered to be archaeological monuments. Archaeological findings substantially confirm that people have been using them as dwellings more than 35 thousand years ago.
Investing in Georgia Real Estate: Location and site overview
The plots are located north of the village of Dzevri; more specifically – at a distance of 6 km from the village. Distance from the lot on sale to Tbilisi is 227 km, to Kutaisi – 42 km (the nearest airport), to Zestafoni – 32 km (the nearest railway station).
The location of the land plots is especially noteworthy, as they are located on the Cholaburi-Terjola-Tkibuli road, which connects the two district centers of Terjola (18 km) and Tkibuli (11.2 km).
The plots are situated in a forested area, surrounded by the Rachin mountains. Distance from here to Tkibul reservoir is only 2 km, and to the caves – 5 km. Beautiful nature, mountains, picturesque caves, a river and a reservoir, which, notably, is located at an altitude of 552 m, are some of the strongest factors of attraction for tourists, and in evidence of this trend, the increasing tourists flows to these destinations have been recorded since 2018.
Given the growing interest in the region among Georgian and foreign tourists, the 5-star Dzeruli Hotel (March 2018) opened in the neighborhood and very soon became highly popular among tourists. It is located at a distance of 5 km from the sites put up for auction.
The nearest social infrastructure from the object of sale is in Zevri. Some local-style bakeries can also be found there.
The object of sale consists of two non-agricultural land plots with an area of 66 931 sq.m. and 54 967 sq.m each. On the larger land plot there are unfinished building structures, the second is just covered with vegetation.
Prior to launching construction works, the presence of a power line on the site and the proximity to the Cholaburi-Terjola-Tkibuli road are some of the key factors to consider. Hence, you will need to obtain permits from the relevant state authorities.
The beautiful nature and interesting recreation venues, as well as hunting sites makes this place highly advantageous for the establishment of a hotel complex, which incidentally, is supported also by the increasing number of tourists flows – both locals, and foreigners, who take special interest in the attractions of the neighborhood. Moreover, as noted above, there is only one hotel available in the neighborhood, which clearly is not sufficient, given the prospects for the development of the region.
Investing in Georgia Real Estate: terms of the auction for buying land in dzevri
It will be possible to purchase the lot by winning the auction, which is held on the following conditions:
- the initial cost of land – 433 000 GEL;
- the minimum step for raising the bid is 2,000 GEL;
- minimum guaranteed deposit – 129 900 GEL;
- guarantee period is 45 calendar days.
The auction participant can deposit the guarantee in several forms: in cash at any branch of Liberty Bank, or by transferring from a payment card to the auction website, or by activating an irrevocable electronic guarantee of a Georgian bank.
In addition, the winner of the auction will be required to:
- make a final payment for the lot within 25 calendar days, but no later than 30 calendar days;
- sign a contract for the purchase of a lot in any branch of the House of Justice within 45 calendar days.
If these preconditions are not fulfilled, the bidding results are canceled, and if the winner refuses to sign the contract, then the guarantee amount is also collected to the Georgian budget.
Undoubtedly, now is the right time to buy real estate in Georgia, as the current conditions are by far the most favorable in the country. Therefore, if you have made up your mind to participate in the auction, please do not hesitate to contact us by e – mail at firstname.lastname@example.org. We will promptly get back to you with feedback, will be happy to respond to your questions as well as discuss the terms of cooperation. You can also see some more lots available at the privatization auction below:
- sale of government cottages in the resort village of Tskhneti (a suburb of Tbilisi)
- land for the construction of hotels or an educational center in the city of Gurjaani (Alazani Valley, Kakheti)
- land for the construction of a hotel in an ecologically clean zone in Borjomi .
Tags: #Investments in Georgia #Real estate in Georgia