When you are going to buy real estate and you are thinking of using it for investment purposes, it is necessary to review how the property is converted into monetary capital

It should be noted that the investment environment is a complex concept and implies for creation of favorable conditions for investment. To be more precise, it means how favorable capital investment is from both political and economic points of view.

The sales comparison method recognizes market prices and if these data are available, the sales comparison approach is the most systematic approach.

According to the method of capitalization of income, it is considered that the value of real estate is formed as a result of income received from the same property.

Several basic approaches are used in practice to estimate the market value of real estate, one of which is the income method, which determines the market value based on the unity of the income received from the use of the object, through the use of direct capitalization.

The capitalization of earnings approach can be done using the direct capitalization method, which means summing these five components:

Risk-free rate of return – %

Country risk – %

Risk of investing in real estate - %

Low liquidity of real estate - %

On investment management – ​​%

Research conducted on the Georgian real estate market showed that the price of real estate increased by 10% from 2022 to 2023. From 2024, experts assume that this figure will increase by 12%.