Should you invest in China or Georgia’s property market? This is the big question that most property investors are grappling with, considering that the two countries are very different. China is highly industrialized, while Georgia is emerging from the shadows of the former soviet. To help you make the big decision, we will take a closer look at numbers for each country and the benefits that come with investing there.
A Closer Look at China’s Property Market
The prices of property in China’s big cities started slowing a couple of years back, and the trend accelerated downwards in 2020 because of COVID-19pandemic. As the slump in the major cities started moving down, the reverse was true in the smaller inland urban areas as the government encouraged investors to move there. Despite this, the price of properties in the cities is very high. Here is an overall outlook of the Chinese market.
China Property Market in Numbers
- By mid-2019, the mean price of new houses in China rose by about 10.78%.
- There were about 251 real estate restrictions between January and June 2019.
- In the four top-tier cities, the highest increase in the price of the property, 0.5%, was in Shenzhen between May and June.
- Following the economic crisis of 2008 and 2009, the Government of China released CNY4 trillion (US$585 billion) post-financial crisis stimulus package, which has helped developers to easily acquire loans.
Benefits of Investing in China’s Real Estate Market
- China boasts of a large population which provides a ready market for properties.
- The country is putting a lot of effort into attracting foreign investors.
- Because of advanced technology, property development in the county is pretty easy.
Despite these benefits, the restrictions used by China are very stiff, making it almost impossible for more investors to go there. For example, you can only invest in the county by opening a company, which is complex and takes very long. The easier method is entering into a partnership with a local Chinese person.
Investing in the Georgia Property Market
The property market in Georgia is relatively “new,” and it has a long way to reach the Chinese level. But like we are going to see, this is actually an awesome advantage that places Georgia at the top of the list for property investors compared to China. To start with, let us take a closer look at the numbers that define the Georgian real estate market:
Georgia Property Market in Numbers
- In 2019, particularly Q1, the average price of apartments in the country shot up by 7.1% from the previous year. Note that the rise was reported almost in all cities, from Tbilisi to Saburtalo.
- Mattsminda, one of the main districts in Tbilisi, has the most expensive properties with an average of US$ 1,079/square meter in Q1 of 2019.
- The Georgia’s economy has been expanding steadily since 2015, a trend that is expected to continue defining the property market in the next five-ten years. In 2015, the economy grew by 2.9%, 4.8% in 2017, and is expected to grow by 4.0% in 2021.
Benefits of Investing in Georgian Market
- The process of buying property is pretty easy and fast.
- The cost of property is lower compared to China.
- You are free to invest the preferred city for commercial and residential properties.
- The county is overflowing with potential in different areas, especially Tourism.
As you can see, both China and Georgia come with unique benefits when it comes to real estate investing. However, we would strongly encourage you to consider Georgia because there are very few and relaxed regulations for investors. Besides, you can always work with the best real estate development company personalities, such as John Dodelande, to make investing easier. Again, more people are just discovering its potential, and you are likely to make huge profits in the coming years.
