When it comes to safe and profitable investment in Georgia, investing in the construction industry in Georgia is definitely one of the best options. In this article, we try to give a brief overview of some issues, including the culture of the people in relation to the building and the reasons for the reliability and high profitability of the construction industry in Georgia. We hope you enjoy reading this article by SisnoGroup.
- Lack of attention to the facade and common areas of buildings in Georgia:
In this country, construction industry in Georgia that may attract your attention is that you see a lot of buildings (apartments or villas) in the country that are very simple and maybe ugly from the outside. They have corridors with very little light and clutter, but when you enter the interior of the house, it is generally very stylish and clean, so it is hard for you to believe that this space is located in the same building. Important Note: It should be noted that with the significant growth of foreign real estate buyers as well as the economic and cultural growth of the people of this country, buildings have improved a lot in recent years and a number of stylish buildings is large in a few years.
- The long history of apartment living in Georgia:
Georgia had been a member of the Soviet Union in the past, and organized apartments have become so popular in this system that you can build between 10 and 20 storeys, sometimes more than once. These were during 60 years, so Georgia is one of the countries where apartment building is very old.
- Common rate in buying and selling real estate in Georgia:
In this country, although according to the law, real estate transactions must be done at the official rate of the country, GEL, but in reality all pricing by construction companies and people on real estate is in dollars. The dollar is the common rate of trading and is written only in official government sales documents to Lari.
- How to deliver buildings by builders:
Construction industry in Georgia, it is easy to say that more than 98% of builders deliver their buildings in such a way that the facade of the building and the commons are completed, but in the interior of the apartment or when you open a villa, you come across a concrete or gypsum cube, which means that there is nothing inside it (this is called Black or White Frame) and the buyer himself designs and executes the inside of the house according to his own desire .
- Easy to obtain visa construction permits:
According to the World Innovation Organization in 2018, Georgia ranks second in the world in terms of ease operation. So in Georgia, it is easier to get a construction permit than in many other countries, and it is shorter in terms of time.
- High profitability of construction:
It should be noted that in calculating the profit of construction is depeand on many factors such as ground conditions and location, number of floors, quality of construction, etc. To calculate profit there are too many ways which are effective, but we want to create an imagine: for example, building a six-story building with a building area of about 1,500 square meters is associated with at least 50 percent net profit.
- Short construction time:
As explained above, taking into account the culture in the community 95% of companies are delivered in black frame or white frame and builders only to complete the facade and commons are committed, it is easy to see that the time of Construction industry in Georgia is about half than many other countries, which can be a great stimulus for investors.
- People welcome pre-purchase of property:
In this country, the culture of pre-purchase of property is very common and these people and even foreign buyers are very interested in this issue, and considering that the inflation of construction goods in this country is less. The ability to pre-sell property to industry investors, is such as winning the lottery.
- Very low taxes:
According to the World Economic Forum, Georgia ranks ninth in the world in terms of tax collection, so it is easy to say that this country is a kind of tax heaven for investors because taxes are very low. For example, the customs duty on imports of goods is zero, five and twelve percent, VAT is eighteen percent and income tax is about twenty percent.
- Low wages of workers and skilled labor:
It is easy to say that in this country the wages of labor and specialists are at least about one-sixth of the wages in European countries and other countries of the region.
- Suitable banking support for investors in construction:
Reputable and large Georgian banks provide a lot of support to investors in the construction industry in Georgia in the form of partnership or lending, as well as by concluding contracts in the field of sales with special conditions.
- Government support:
The Georgian government supports investors in various models, for example, in areas where it intends to attract investors by offering tenders for free land or by accepting about 20% of the building for free. It will give you free land for families that the government determines, and it will also help increase construction density, although the government needs to do its own protocols.
Yes, one of the fastest growing investments in Georgia is to invest in the construction industry in Georgia
Ease of obtaining building permits, high building profitability, welcome for people to buy property in advance, low taxes, etc..
The long history of residential living and the way buildings are delivered is one of the lucrative reasons for the construction industry in Georgia.
According to the law, transactions must be made at the country's official rate in lari, but all real estate prices by construction companies in Georgia are in dollars.
Georgia ranks third in ease of doing business and is easier and shorter to do than other countries