Batumi real estate market is developing. In a growing market, competition is also increasing and the seaside town is becoming an increasingly attractive place for those looking to invest in real estate. Elt Building, which has already invested 70 million dollars in Batumi, plans to take advantage of the market. We offer an interview with the commercial director of the company, Valery Gurgenadze, who talks about the advantages of Batumi as an attractive city for investment in real estate.
Why Batumi? The current global economic and political landscape has created a shift in the real estate market, making Batumi a prime location for investment.
The COVID-19 pandemic has caused individuals to rethink their living situations, leading many to seek out smaller cities like Batumi with a better quality of life. Meanwhile, political instability in neighboring countries has encouraged investors to turn to Batumi as a safe and favorable business environment.
But the appeal of Batumi goes beyond just its current circumstances. The Georgian government has been working tirelessly to promote tourism and attract foreign investment, signaling that the city’s real estate market will continue to flourish in the long run. ELT Building in Batumi has already invested $70 million and is planning to capitalize on the market. We are delighted to offer you an exclusive interview with the company’s Commercial Director, Valery Gurgenadze. With its breathtaking scenery, rich culture, and welcoming community, Batumi offers an unparalleled lifestyle that appeals to both locals and foreigners alike. So why Batumi? The question should be, why not Batumi? Invest in your future and discover the countless possibilities that await you.
Who are your buyers/investors? Which segment is most active and with whom is it much relevant to work harder, for reducing the dependance on one particular market?
While Russian buyers historically dominated the market, we are proud to be among the pioneers in exploring new markets. Our marketing efforts have led to representation from 41 countries in our “Elt Quarter”, reducing our dependence on the Russian market to 20% in the past two years. We have successfully entered into new, untapped markets such as Northern Europe, South America, Arab countries, and Central and East Asia.
The demand for small and mid-sized apartments suitable for short-term rentals has been the most active segment in Batumi’s real estate market, particularly among international investors. This is due to the city’s popularity as a tourist destination, favorable investment climate, and relatively low cost of living.
As the city continues to grow and attract more investors, it’s crucial for both the private sector and the government to focus on improving the city’s infrastructure. This includes developing transportation links and new amenities to appeal to a wider range of investors. Additionally, promoting Batumi as a destination for remote work or year-round fun and nightlife could attract even more interest from international buyers. With our combined efforts, Batumi’s real estate market will continue to thrive and attract investors from all corners of the world.
What is your advice to those who want to invest in real estate in Batumi?
Investing in real estate is a big decision, which is why it’s crucial to work with a reputable developer who has a successful track record and a proper vision. At our company, we prioritize providing consultation to potential partners/clients who want to buy an apartment for investment purposes. We are proud to be one of the top choices for investors who seek to generate rental income.
When considering your investment goals, it’s important to align them with the local market. In Batumi, it is desirable and justified to invest within the city itself. There are several reasons for this, including the high demand for properties in the most popular area for tourists and visitors. This can make it easier to find tenants and generate rental income.
Moreover, the city area is typically more developed, with better access to amenities such as shops, restaurants, and public transportation. This makes it more attractive to tenants and can increase the value of your investment over time. Additionally, properties in the city area of Batumi have a higher potential for appreciation in value over time, due to the high demand and limited availability of properties in this area.
We also place great attention on resale value, as properties in the city area of Batumi may have a higher resale value than those in the suburbs. This is because they are more desirable and in higher demand. Furthermore, investing in the suburbs of Batumi may be less attractive, as there may be lower demand for properties in these areas and fewer amenities and attractions to attract tenants. Batumi’s development strategy is also aimed at making the city-resort busy throughout the year; on the creation of the infrastructure and services in the city that will attract the so-called tourists. Even in the “off-season”; Taking all of this out of the city is unimaginable due to the current business or governmental vision trends in the coming years;
At our company, we strive to provide mid-budget visitors and tourists with exceptional service, which is why we are the only company with an international hotel management company for our complexes. Investing in the city area of Batumi also typically results in lower vacancy rates, as properties in this area are in higher demand and may be more attractive to tenants. However, investing in the suburbs may take 5-7 years to organize appropriate infrastructure.
What can you personally tell us about the future plans of your company?
Our mission is to bring as many international hotel brands and hotel management companies to our region as possible, enabling investors to make successful investments. This will be the foundation for sustainable development in our local investment environment.
By the end of 2023, we plan to put 500 new hotel-type apartments into operation in our “ELT Quarter”, further expanding our successful model in Batumi. We are also excited to announce our entry into the Tbilisi market in 2023, offering a new dimension of living environment under the same, “Quarter” concept, complete with shared services and infrastructure.
In 2024, we are thrilled to introduce the first “La Quinta by Wyndham” hotel in the region and 500 hotel-type rooms/apartments under international management in our “ELT Quarter”. This represents another major milestone for our development and investment in the area.
We are also proud to announce our upcoming “Bridge project,” a bridge with an entertainment concept connecting our neighborhood to the beach/pier, creating a unique tourist destination for Batumi. Additionally, the “Elt Yacht Club” is another exciting project that we are building in partnership with Azimut/Benetti Georgia representative office, bringing a new and large-scale development to Batumi.
Through our dedication to bringing in international partners, expanding our successful model, and investing in innovative projects, we are committed to sustainable growth and development in the region.
I would very much like to thank you for taking the time to read our article on the practical insights of investing in the Batumi real estate market. We hope you found the information valuable and informative in your investment journey. Our team is dedicated to providing the latest and most accurate information to help you make informed decisions.
S
