Real Estate & Crypto Currency

As the popularity of Georgia spikes around the world and investments become bigger, tourists are looking to into real estate options not just for investment purposes but also as a getaway spot. With these social developments, official structures being built in Tbilisi and the ones that will be built in the future are interested in the development of the capital's real estate market, being ready to provide all kinds of support to private companies.

Additionally, companies and organizations from more than ten countries are currently engaged in the construction and sale of real estate in Georgia, with special interest shown by companies from multiple countries like China, India, Pakistan, Qatar, Turkey, the UAE, France, Spain and the US. With Georgia’s economic growth of 5.5% in the first seven months of 2018, and an expected overall growth of 4.5%, the world is watching, but not just waiting.

Interesting things have started happening in Georgia regarding real estate, especially concerning crypto currency. The mining of crypto currency tends to gravitate towards regions with cheap electricity, which makes sense, and as it becomes more popular, actual ATMs are being established in Georgia especially for crypto currencies. This craze has now gone a few steps further, however, with actual real estate being bought and sold using crypto currencies such as bitcoin and etherium.

Buying real estate with crypto currencies started in around 2012 with agencies accepting bitcoin for real estate; however, it wasn’t widespread, with most such sales happening in the private sector. Despite warnings of massively fluctuating values, things started changing in 2014 when it slowly started gaining popularity. In 2017, some agencies in the US, United Arab Emirates (UAE) and Indonesia openly began to accept crypto currencies for real estate.

In May 2018, an apartment in Vake was bought using bitcoin. The apartment was advertised by a real estate agent and at the request of the owner, it was also added that he would accept bitcoin. In the end it was bought for 25 bitcoin (currently valued at $163,040) and thus kicked off the first known case of this kind of sale in Tbilisi. Following suit, in July, another apartment was sold for bitcoin in Batumi, bought by a citizen of Kazakhstan. Geoline, a company which recently opened an office in Batumi, operates online specifically for parties interested in purchasing real estate with crypto currencies. There is high interest from countries such as Belarus and the UAE to purchase apartments in bitcoin all over the world, as it is difficult to make transactions and buy apartments abroad without getting questioned by authorities.

For its part, the National Bank of Georgia warns the public that for virtual currencies there is a significant fluctuation in value, so due to price volatility, their users may face potential financial risk. The National Bank points to the need to introduce regulation of virtual currencies, but it is not yet known when this will happen and in what form. საუკეთესო ქართული ონლაინ კაზინოები https://casinohub.ge/ 2020.

According to Vakhtang Gogokhiya, Co-founder and CEO of crypto currency mining company Golden Fleece, regulation is needed primarily to protect against fraud, but for now the State should fix its position on this sector and outline the appropriate strategy so that investors do not have a fear of uncertainty.

Crypto currency changed Georgia economically, and it’s only fair to assume it will do so in the future. The use of it in real estate purchases is part of the ripple effect caused by throwing such a large stone into the territories of the Black Sea, and will surely result in a wave of new economic possibilities.

By Shawn Wayne