Georgia recorded a record demand for real estate from Russians

In the first eight months of 2022, Russian citizens bought up 15,164 properties in Georgia. This is reported Ministry of Justice of the country, noting that this number is more than twice the total results of 2020 and 2021 (2,701 and 4,332 objects, respectively).

During the same period, 10,975 Russian citizens registered ownership of 13,850 land plots in Georgia. The data includes land plots with and without buildings.

More than 13,000 purchased real estate objects are apartments for which the property rights of 11,722 Russian citizens are registered. Another 73 citizens of the Russian Federation have registered ownership of 93 commercial premises.

Since the beginning of the war in Ukraine, 1.1 million people have left Russia. According to Rosstat, in the third quarter alone, the number of citizens traveling abroad increased by 1.2 million, to 9.7 million. At the same time, Georgia and Kazakhstan became the two main areas for increasing the number of departures: the number of trips to these countries increased by 1 million and 400 thousand, respectively.

Money is leaving the country along with the people. At least $36 billion left Russia in January-September: the amount of funds of individuals in accounts in foreign banks reached $66 billion and for the first time exceeded the amount stored in foreign currency accounts in the Russian Federation ($63 billion). Remittances to Georgia alone increased fivefold in 2022 to $1.75 billion, exceeding 60% of all transfers, the National Bank of the country reported.

The IMF initially projected a 9% growth for the Georgian economy in 2022, but raised the estimate to 10% (and inflation to 10.5%) in early November, thanks in part to a “strong increase in migration and financial flows caused by the war.” [в Украине]as well as transit trade”. The National Bank of Georgia “properly maintained a flexible exchange rate and rebuilt international reserves, taking advantage of the current favorable environment – strong growth in external receipts,” the IMF report says.

A side effect of the influx of Russians and their money money was price increases. The cost of renting apartments has doubled, while housing in Tbilisi and Batumi has risen in price by 15-20%.

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