The Best Markets to Invest in Georgia
Following the breakup of the Soviet Union in 1991, a number of new and independent countries we born. Georgia offers a relevant case in point, with this Eastern European nation now home to about five million people and an increasingly prosperous economy.
Interestingly, Georgia’s economy is considered to be one of the fastest growing entities of its type in the whole of Eastern Europe, with a number of key sectors driving this growth year-on-year.
In fact, it’s the agricultural sector that remains most synonymous with high growth, with this space currently employing around 53% of the nation’s total workforce. But what sectors offer the best value from an investment perspective, and where should you focus your efforts in the current climate?
- A Coffee Café Business
Whether you reside in Georgia or simply want to invest in a growth market, a coffee café business may offer the best value in the Eastern European nation.
There are several reasons for this; with this type of venture typically boasting low start-up costs and overheads and relatively easy to establish.
These factors all translate into higher profits that are accessible and sustainable over time, creating a scenario where you can boost your long-term gains and the overall viability of your portfolio.
This type of venture also tends to enjoy considerable patronage during times of economic growth and expansion, as consumers have more money to spend and reinvest into the economy.
- Tourism
On a similar but more general note, tourism also represents a significant growth venture in Georgia.
Of course, tourism in Georgia is likely to be adversely affected by the impact of coronavirus, which continues to sweep across the globe and has now claimed more than 156,000 lives worldwide.
This is little more than a temporary blip in an industry that has continued to go from strength to strength in Georgia, however, following a series of large-scale infrastructure projects launched between 2004 and 2013.
In 2019, the country also hosted an impressive nine million visitors, up from 4.7 million in 2012. This trend is expected to continue indefinitely in the longer-term, although we’d recommend liaising with an international consultancy firm like RSM to ensure that your tourism investment is considered and well-times.
- Real Estate
Last, but not least, we come to the real estate sector, which offers access to a secure store of wealth in Georgia and remains capable of driving sustainable and incremental gains over time.
Much of this has to do with the diverse nature of real estate in Georgia, from widespread agricultural land (as we touched on earlier) to various residential properties to holiday apartments.
According to some estimates, the overall value of real estate in Georgia could be poised to triple over the course of the next few years, while some investors have already reported earning 14% and 15% yields on their own real estate assets.
Clearly, properties synonymous with growth industries tend to offer the best returns, particularly those based on prime agricultural land such as poultry farms (which also represents big business in Georgia).
Commercial premises are also in high demand, so focusing your real estate investment in these areas should stand you in good stead overall.
