In a market characterized by rapid growth and oversupply, Tower Group positions itself as a long-term, full-cycle developer focused on quality, concept, and sustainable value. Sophia Tsuladze, Director of CMG, which oversees the strategic development of Tower Group’s projects, discusses how the company creates differentiated real estate offerings in Adjara’s evolving market.
By Kakhi Chakvetadze
Tower Group has been operating in the market for more than five years. What differentiates the company from other developers, especially at a time when the number of projects on the market is growing rapidly?
Tower Group’s main distinction lies in experience, a systematic approach, and stability. The foundation of the development company was laid by our holding’s core company, Gza LLC, one of the largest road and infrastructure companies in Western Georgia. The company has over 20 years of experience and owns its own concrete plants, construction vehicle fleet, furniture manufacturing facilities, and, most importantly, an experienced team of professionals.
The company’s track record includes thousands of kilometers of road infrastructure, including highly complex projects in mountainous Adjara and at Batumi Airport, as well as water supply projects carried out in collaboration with both local and international companies, among many others. Entering development was a logical diversification step for the company, which led to the formation of Tower Group.
Our key advantage lies precisely in this: we build using our own materials, our own equipment, and our own team—something that is not common among developers. In other words, we operate a continuous production cycle: material production, design, construction, furnishing, and property management.
While many new developers on the market are focused on short-term trends, Tower Group approaches each project with a long-term vision, paying particular attention to proper location selection, concept development, and quality control. This creates trust among both investors and residents.
What core services do you offer customers, and which segment is Tower Group focused on?
Tower Group offers clients a full production cycle in real estate development, from project assessment, planning, and development stages to construction, sales, and management. The company’s portfolio includes both residential and investment projects.
Our target segments include private investors seeking stable returns, as well as individuals purchasing residential apartments for personal use. This diversity enables us to respond effectively to different types of demand.
Your portfolio includes projects of different types and concepts. How do you decide where and what type of project is most appropriate?
One of the key factors in decision-making is location—often, the location itself dictates which type of project will be most effective. For example, in Ureki, the market is more oriented toward seasonal investment apartments rather than permanent residences. In Batumi and Tbilisi, the picture is different, with demand for both residential and investment properties.
During the analysis process, we assess infrastructure, tourism, economic potential, market behavior, and long-term development prospects. Based on this, each project is created with a concept tailored to a specific location and real market demand.
Our current project, Piazza Residence, is one of our most exclusive developments with a distinctive concept. On the ground floor of the residential building, residents will find a piazza inspired by the Versace House, featuring high-end restaurants and cafes. The project also incorporates a historical monument, which we are restoring. As a result, this is not just a residential building; it represents a new lifestyle in which residents become part of Old Batumi’s history.
Another conceptually distinct project is Kvirike Residence. Five years ago, this was something of an adventure, an attempt to establish a chateau in Adjara, Chateau Kvirike, a small hotel with vineyards and wine production. The idea proved successful, leading us to develop a larger-scale project on the existing hotel’s property. This hotel complex, surrounded by vineyards, features spa and fitness facilities, indoor and outdoor pools, and padel courts—everything needed for leisure. The central leitmotif remains the vineyard, the chateau, and wine production, which we aim to promote in the Adjara region.
How do the concepts of Piazza Residence, Panorama, and Kvirike Residence differ from one another?
Piazza Residence is primarily a residential project located in Old Batumi, focused on everyday comfort and quality of life, while also offering strong investment potential due to its location and concept.
Panorama is a fully investment-oriented project, designed to provide investors with maximum efficiency in returns and simplified management.
Kvirike Residence is an investment-leisure concept—it is located within an already established and functional ecosystem on the territory of Chateau Kvirike, allowing investors to participate in an operating business with existing infrastructure and demand.
What led to the implementation of projects such as Chateau Kvirike and Chalet Kvirike in Kobuleti, and how viable is this concept in a coastal region? What factors drove Tower Group’s active expansion in Adjara?
Adjara is a unified yet multi-centered region, where different locations serve distinct functions and generate varying types of demand. Batumi serves as the urban and economic center, while Kobuleti and Mtsvane Kontskhi have strong development potential, and mountainous Adjara generates seasonal and alternative demand. This diversity makes the region more resilient from an investment perspective.
Projects like Chateau Kvirike and Chalet Kvirike emerged from this regional logic. In Kobuleti, land resources, the natural environment, and the dynamics of infrastructure development create conditions for concepts that differ functionally from those in Batumi’s urban construction. Here, demand is more focused on the project’s overall integrity, space, and concept than on location alone. This is why Tower Group decided to actively expand in Adjara and develop various project types tailored to the specifics of each location. This approach creates a more sustainable product for the market and for long-term development.
What kind of real returns can investors expect from Tower Group projects?
In completed Tower Group projects, investors typically see annual returns averaging 10–12%. In addition, capital appreciation is a significant factor. In the case of Panorama, apartment prices doubled and, in some cases, even tripled at different stages of the project’s development.
Piazza Residence also has strong price-growth potential, driven by its location, project quality, market demand, and the scarcity of resources in the city center, underscoring the project’s exclusivity. This provides investors with both ongoing income and long-term asset value growth.
How do the expectations of local and foreign investors differ? What is the typical investor profile for your projects, local or foreign, private or institutional?
Fully investment-oriented apartment projects, such as Panorama, are primarily purchased by foreign private investors seeking stable returns and streamlined processes.
In residential projects, the share of local buyers is higher. Buyers from Tbilisi are particularly active, viewing Batumi and Adjara as places to live or as second homes. The same applies to Kvirike Residence, a summer home in Kobuleti, away from urban noise, surrounded by greenery, just 500 meters from the sea, with its own wine cellar, at the intersection of the sea and mountains, in an atmosphere infused with the scent of eucalyptus.
How is consumer demand changing, and which segment is growing the fastest?
Recently, there has been a noticeable increase in interest from EU countries. This is driven by Georgia’s investment environment, relatively low entry barriers, high potential returns, and the region’s active development.
Overall demand remains stable throughout the year, although during promotional periods, such as the New Year holidays, consumer activity increases.
In your view, what are the biggest opportunities and risks in Adjara’s real estate market today?
One of the main risks is oversupply. Many projects are being built in the city, and a large portion of them are positioned as investment properties. Yet, in reality, they fail to meet the basic requirements of true investment apartments, whether in terms of concept, management, or location.
At the same time, this creates a significant opportunity for high-quality, well-planned projects that naturally stand out in the market and gain a competitive advantage.
Beyond Batumi and Kobuleti, in which directions does Tower Group plan to develop in the coming years, and are you considering adding new regions?
It can be said that Tower Group is now entering an active phase of development. The company plans to strengthen its presence in existing regions while also adding new locations. In the coming years, the focus will be on distinctive concepts, quality, and projects aligned with real market demand. This is a long-term strategy in which the primary goal is not quantity but value creation.
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