However, it is precisely high investment activity that creates increased legal risks. In practice, a significant number of problems arise due to the lack of a full legal check of the property and the developer before signing the contract and transferring funds. Why real estate lawyer in Georgia must participate in the transaction to the signed contract, and not after problems arise.

This material is based on a real legal case, Lawyer Tamta Zarnadze successfully protected the interests of clients and achieved return $250,000, paid for the property, which did not exist legally.

Why does the Batumi real estate market require special legal control?

Most transactions in Batumi are related to:

• new buildings and objects under construction;
• investment agreements;
• staged payment;
• promises of profitability or guaranteed rent;
• purchasing “future real estate”.

Without participation real estate lawyer in Batumi such transactions are often concluded without understanding the real legal status of the object.

Real case: $250,000 for a property in Batumi without legal rights

The buyers planned to purchase commercial premises with an area of ​​approximately 260 sq.m in a building under construction in Batumi. The contract was signed at the developer's office, the signatures were certified, and payment was provided in stages.

At the first stage, an advance payment was made in the amount of 50% of the cost - $250,000. From a formal point of view, the transaction looked standard and did not arouse suspicion.

However, after some time:

• construction work was stopped;
• deadlines for fulfilling obligations were not met;
• communication with the developer has become difficult;
• buyers did not receive confirmation of the legal status of the property.

Legal audit of real estate in Bautmi: what was revealed

As part of the legal analysis, it turned out that:

• the seller was not the owner of the land plot;
• the seller did not have registered rights to the building;
• the object could not be legally sold to third parties;
• the agreement was not registered in the Public Register of Georgia.

From the point of view of Georgian legislation, this meant that buyers have not acquired any property rights, despite the amount deposited.

Why registration of a real estate purchase and sale agreement in Batumi is key

In Georgia, ownership of real estate arises exclusively from the moment of state registration in the Public Register.

Even a signed and notarized agreement does not guarantee:

• does not create ownership rights without registration;
• does not protect the buyer in case of a dispute;
• has no legal effect against third parties;
• does not guarantee a refund.

Why did you manage to get your money back for real estate in Batumi?

Legal work was built comprehensively and included:

• qualifying the situation as containing signs of fraud;
• legal pressure using criminal and civil mechanisms;
• negotiations based on evidence of lack of title;
• assessing the risks of a lengthy lawsuit for the seller.

As a result, a strategy was chosen that was aimed not at a formal trial, but at real and fast return of funds.

Result: $250,000 refund without years of trial

Thanks to the established legal position:

• the entire amount of $250 000 was returned to customers;
• the case was settled without protracted litigation;
• the process took about 6 months.

Foreigner victim of real estate fraud in Batumi

Foreign client from Hong Kong I was planning to buy an apartment in Batumi. During the legal review process, it turned out that the property was under a mortgage encumbrance, which the buyer was not informed about in advance. Thanks to the professional assistance of real estate lawyer in Georgia Tamta Zarnadze, all possible risks were promptly identified and explained, which allowed us to avoid the loss of invested funds and protect the client’s investments.

Main risks when buying real estate in Batumi

• lack of ownership rights by the seller;
• unregistered contracts;
• non-transparent terms of investment agreements;
• promises of profitability without legal guarantees;
• payment before legal verification.

Why a real estate lawyer in Batumi is necessary for foreign buyers

Foreign citizens are often unfamiliar with the specifics of Georgian registration and land law, which makes them especially vulnerable.

A real estate lawyer in Batumi performs a key function - prevents loss of funds even before a dispute arises.

Do you need a legal review of real estate in Batumi?

If you are planning to purchase an apartment, apartment or commercial property, legal support before signing the contract is a mandatory element of a safe investment. Call lawyer Tamta Zarnadze and you will have a real estate transaction without financial risks.

Phone / WhatsApp / Viber: +995 593 163 602
Email: tamta.zarnadze@gmail.com
Website: legaltbilisi.com

FAQ on real estate in Batumi:

Do you need a lawyer when buying real estate in Batumi?

Yes. Most transactions in Batumi are related to new buildings and investment projects, which require mandatory legal verification before payment and signing of the contract.

Does a notary guarantee the security of a transaction?

No. The notary certifies signatures, but does not verify ownership, legal status of the object and risks for the buyer.

Is it possible to get money back in case of a problem transaction?

Yes. With the right legal strategy, it is possible to recover funds, including large sums, even without years of litigation.

Do you work with foreign buyers?

Yes. Legal support is provided to foreign clients taking into account the specifics of Georgian legislation.

Сообщение Real estate lawyer in Batumi - how to avoid becoming a victim of scammers появились сначала на GeoInform.

Analysis of the real estate market in Batumi for September 2023:

1. The number of transactions decreased by 31% compared to September last year.
2. During this period, only 1,163 apartments were sold.
3. The total market volume decreased by 30%, reaching $53 million.
4. The real estate market in new buildings suffered noticeably, reducing the number of transactions by 32%, while in the secondary market the decline was 20%.
5. The weighted average price of apartments in new buildings increased by 7%, reaching $940 per square meter. The secondary market also saw an increase of 13%, with prices at $751 per square meter.

Read also: Real estate lawyer in Batumi - how to avoid becoming a victim of scammers

These statistics clearly indicate a decrease in interest in real estate in Batumi and a decrease in market volume over the period of time under review.

The real estate market in Batumi also reflects the following trends:

Declining number of expats in Batumi

In general, the real estate market in Batumi remains dynamic and interesting for investors, but it is subject to fluctuations depending on economic and political factors. The number of expats in Batumi has reached its level, and its growth is expected. This affects the growth in the volume of real estate transactions. It may freeze at a certain level, but most likely the number of real estate transactions in Batumi will decrease. In turn, the number of expats is decreasing, as many give preference to facilities and resorts in Turkey or the UAE.

Supply structure on the real estate market in Batumi

In recent years, the real estate market in Batumi has become more diverse and innovative. Along with traditional apartments and apartments in new buildings, apart-hotels are gaining popularity, which provide owners with the opportunity to rent out their property and receive a stable income.

Foreign investment in real estate Batumi

Batumi attracts the attention of foreign investors, which affects the growth of the real estate market. External investments are often aimed at the construction of residential complexes and infrastructure development, which helps improve the quality of life and the attractiveness of the region for buyers. But there are problems with the population density of Batumi.

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Also, residential complexes in Batumi are built without parking lots, or with parking lots with insufficient parking spaces. Which leads to a decrease in traffic. The construction of multi-storey residential complexes leads to an increase in the population density of Batumi. Some developers are already building in Makhinjauri, Gonio. At the moment, the official population density of Batumi is almost 3,000 people per square kilometer. This figure is approximate and very underestimated, since Georgia has low statistical control over foreigners who de facto live in the city on a permanent basis.

The impact of tourism on the real estate market in Batumi

Batumi is a popular tourist destination on the Black Sea coast and this has an impact on the real estate market. Many investors and buyers view real estate as a potential source of income through short-term rentals for tourists.

The level of construction activity in Batumi is decreasing

Increasing demand for real estate in Batumi in the past has led to an increase in construction activity. However, given the decline in the number of transactions in 2023, a decline in construction activity is expected.

Regulation of the real estate market in Batumi

Georgian government agencies are actively working to regulate the real estate market, including strengthening control over the legalization of transactions and foreign investments. These measures are aimed at ensuring market stability and transparency.

Сообщение Stagnation of the Batumi real estate market in autumn 2023 появились сначала на GeoInform.

Meeting developers in Georgia

In the summer of 2018, the first real estate exhibition was held in Batumi, with the aim of attracting investors from neighboring countries. Of course, it’s hard to call it an exhibition. 6-8 stands of local developers were presented, however, in fact, you can’t ask anyone in Batumi – all owners of construction companies, just not everyone wanted to show themselves at the exhibition. And after visiting several developers' offices, it became clear why.

In offices, they often cannot provide accurate information on specific technical issues. For example: how communications will be carried out; what will be the decoration of the walls (external and internal); will there be waterproofing of the façade, roofs and walls, etc.

Quality of new buildings in Georgia in 2020

This is a must see. When you enter a new building for the first time in your life, you can, of course, decide that this is how it should look. But no, this is far from true.

An apartment in a new building should be bright and free of construction waste. Preferably with internal partitions and windows. Of course, we are talking about ready-made, commissioned objects.

For comparison, look what they look like apartments in new buildings in Turkey.

Yes, of course, there are different types of readiness of real estate, but then there is no point in talking in advertising brochures about comparing prices for new buildings in neighboring countries. This – heaven and earth.

The strangest thing is that Georgian developers do not even think about removing the mountains of construction waste in apartments, at least for good photos. All this can be seen on the websites real estate agencies in Georgiaselling such apartments.

As a result, when buying such an apartment, you must spend time cleaning the apartment from everything that the builders left behind, try to wash the windows of cement or paint. Break through a window or door in a room located inside the apartment.

But maybe they will offer you to buy an apartment without walls and an entrance door, just a place on the floor. All this is available on the real estate market in Georgia. The main thing is not to buy “pig in a poke” online. You must see what you are buying and carefully read the contract with the developer.

Real estate prices in Georgia in 2021

Real estate prices in Georgia in 2021. How objective is the price for new buildings and real estate in Georgia? You only need to compare a few numbers to understand why they are overvalued and a bubble has formed.

According to the IMF, global GDP fell by 5% in 2020. This is due to the closure of businesses during the 2020 Pandemic and the shutdown of many markets.

• If we compare the crisis of 2008, then in 2009 world GDP fell by only 0.08%.
• According to the Georgian Ministry of Statistics, GDP fell by 5.1% in 2020.

Prices for New real estate in Georgia in 2019 were as follows:

• black frame - from $550 per square meter
• white frame - from $1100 per square meter

Considering that in large cities of Georgia the construction business has acquired noticeable proportions in recent years, the main blow from the 2020 pandemic fell on it. The next link in this decline was the real estate market and the tourism business.

Problems of developers in Georgia in 2020

Since most construction projects are pledged to banks, it is not difficult to guess what losses and problems developers now suffer every day.

Those construction companies that can quickly accept the fact of losses will be the first to reduce real estate prices in 2021 in order to maintain some part of the business and pay off interest on loan debt.

Today, by the beginning of 2021, there are already offers from developers at $399 per square meter. in a ready-to-move-in house.

The 2020 pandemic has led us to an economic depression. Having carried out even a superficial analysis of the real estate markets in the world, it is not difficult to see their decline associated with the closure of shops, offices, shopping centers and restaurants, and the almost complete closure of the tourism business in the coming years. Against this background, most of the players in the construction market have already become bankrupt.

Real estate agencies are closing. So how does the situation on global real estate markets differ from Georgia? Nothing. The only worse thing is that most of the developments were planned for rental to tourists.

If the owners of such real estate have not yet realized that “the same as before” will no longer be the case, they are not preparing a new business for themselves, diversifying the old one. This crisis will force prices to come down, otherwise it will be even more difficult for them to accept their losses in 2021-22. And the real estate “bubble” will burst again, as it has happened many times in history, revealing real prices per square meter in Georgia.

Сообщение Georgian real estate market analysis 2021 появились сначала на GeoInform.