Full legal support and mediation between the investor and the government of Georgia on the project: plot of 0.35 hectares for production / warehouse in Tbilisi – from 3 000 EUR
Despite the global pandemic, the auction in Georgia continues, offering the possibility to purchase real estate for business on profitable terms. In this article, we will introduce you to an object in Tbilisi that is recommended for use as a warehouse or for other business operations. It may be of interest to businesspeople who want to carry out activities in the field of storage, logistics; the object can also serve as a service station or as a paid parking lot. Let us have a closer look at the key factors which make it reasonable to purchase this property in Georgia.
Buying Real Estate at a State Auction in Georgia: Benefits
All properties that are put out for sale in Georgia are of interest to investors for the following reasons:
- an expert assessment was performed by an independent appraiser – the object is being sold at a real price without extra charges from intermediaries;
- the government has taken care of all bureaucratic tasks – the boundaries and easements of objects have been defined;
- the winner of the auction privatizes the property in an expedited manner;
- the property is taken into account in the development plans of the city.
It should be noted that when the investors intend to buy such a property under regular terms, they will needs to spend time and money on solving all the above issues, whereas in this case, all of these aspects have been taken care of by the Georgian government in advance.
It is also profitable to make the purchase specifically these times, due to the depreciation of the lari, which makes it possible to purchase real estate in Georgia at a lower price in dollar terms.
Who can take part in the auction in Georgia
The following persons/entities are allowed to participate in the state auction:
- Georgian companies with Georgian and / or foreign founders.
Thus, foreigners are allowed to make the purchase as an individual as well as by means of establishing a company.
Overview of real estate object in Georgia
The following lot was put up for sale at the auction of state property:
A non-agricultural land plot with an area of 3,484 sq.m, with buildings, located on Yesenin Street in Tbilisi
The lot is located in Isani-Samgori district, near the international airport: the site is only 1.6 km to the runway. The Kakheti Highway passes right next to the facility, through which you can get both to the center of Tbilisi (13 km), and to the CCP “Krasny Most” on the border with Azerbaijan (62 km) or to Poti (400 km).
In the east, the site borders on a highway, in the west and north – with residential buildings, in the south – with industrial facilities. There are also large factories across the road, also a car wash, fast food, several grocery stores and non-food stores nearby, and 200 meters to the nearest public transport stop.
Description and photo of the object
The property is a fenced flat land area of 3,484 sq.m. It houses 5 buildings in different conditions, which can be used as garages, boxes or warehouses.
An asphalt road leads to the object, and the passage to the site is limited by an iron gate (in poor condition). The site itself is asphalted, and the coating is not damaged. The fence surrounding the site needs to be replaced or repaired, as is part of the building.
Terms of the auction for the sale of land with buildings in Tbilisi
It will be possible to become the owner of the lot by winning tenders, which are held on the following conditions:
- Starting price of the object – 913,000 GEL;
- The minimum price bid increase – 2,000 GEL;
- Guarantee amount – 273 900 GEL ;
- Guarantee period is 45 calendar days.
You can pay the guarantee fee in cash at the Liberty Bank cashier’s office, by wire transfer by credit card through a form on the auction website or by activating an electronic bank guarantee.
Upon completion of the bidding, the winner is obliged to pay the balance of the lot within 30 calendar days (recommended within 25 calendar days), and then sign the purchase agreement in one of the Houses of Justice within 45 calendar days. If the winner refuses to sign the contract, the guarantee is credited to the budget of Georgia, and the auction is canceled.
The buyer of the property should consider the following:
- 46 sqm land is under the rights of easement;
- the facility is located near the airport and the height of the buildings on the site cannot exceed 510 m.
Benefits of Buying a Property in Tbilisi
This lot may interest investors who need a site that is located:
- in the capital of Georgia;
- close to important highways (only 65 km to Azerbaijan, 406 km to the seaport in Poti);
- near the airport where there is a cargo terminal (2 km to the international airport);
- in an area rich in industrial infrastructure.
By the way, the distance from the lot to the largest automobile market in the Caucasus (AUTOPAPA) is only 21 km; and to the Free Industrial Zone – 28 km. It can also be used by the future owner in building a business model of the future asset.
If you are interested in profitable real estate investments in Georgia, we recommend that you pay attention to the state auction. On it you can purchase objects that are rationally used for hotels, hotels, cafes, restaurants, residential buildings, for production, warehouse or farming. Write to us at an e – mail: firstname.lastname@example.org and we will find exactly what you need.
Are land auctions a good idea?
While traditional land sale transactions can drag on for many months and are full of drawbacks and pitfalls, land auctions are a much simpler, quicker and more reliable way to become a land owner. No estate agent’s commission is to be paid. At a land auction, buyers are never obliged to pay more for their purchase than the price of the auction. There is no smooth-talking salesman to coerce them into a higher price. For sellers, the benefit is that they are guaranteed for the transaction by means of setting a reserve price on the sale.
Top 10 Things to Consider When Buying Land
Location of the land plot. It’s the most important factor whenever you buy real estate
· The designated use of land. What are you buying the land for?
· Types of Land. Sometimes, it comes down to understanding how much money you want to spend, in the long run.
· Land zoning.
· Restrictive Covenants.
· Utilities and roads in the neighborhood
· Liens and easements.
Can foreigners buy property in Georgia?
YES! Foreigners can buy property in Georgia. Moreover, foreigners enjoy exactly the same rights when it comes to buying residential real estate as Georgian citizens. No additional requirements are set for foreigners and no extra taxes are imposed, either. The only documents that are required for purchasing property is a copy of your passport.
In addition to residential real estate, the same applies to the purchase of commercial real estate such as hotels, shops, restaurants, offices, etc. There are no restrictions here either.
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