Overview of the real estate market in Abkhazia and availability for Russian buyers

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Buying real estate by the sea is the perfect way to solve the problem of recreation, vacations, family members’ accommodation during the holidays and a great way to invest when it comes to profitable projects on the coast of all seas and oceans.

Abkhazian real estate market overview
Vissarion Tsvizhba. Sukhum embankment. 2000

“House by the Sea” and “Tangerine Paradise”

It is no secret that resort real estate always brings profit to its owners, even when the world is shaken by another economic crisis. By purchasing a small house by the sea or an apartment in a residential complex on the first line of the sea, the owner can rent out the house or, after restructuring / improvements, under favorable circumstances, sell the property on the coast for much more expensive.

Real estate on the Russian coast of the Black and Azov Seas is popular for recreation, in demand in the segment of resort real estate. We will not compare the proposed options for real estate on the coast of the Pacific Ocean and the Mediterranean Sea with Russian ones and condemn domestic businessmen who have the opportunity to purchase real estate in the world’s most popular resorts. Everyone has the right to his own dream and to fulfill it within certain limits. Sunny Abkhazia and the turquoise waters washing the most popular resorts during the period of prosperity of the Soviet state are well known to the older generation of Russian citizens. At that time Abkhazia was famous not only for the resorts of Pitsunda, Gagra, Novy Afon, Gudauta, but also for sea ports, research institutes, tangerine plantations, hospitality of the local population and national traditions..

Then there was a war that destroyed the course of life in this heavenly place on the Black Sea coast. Many cities and resorts were affected, regular passenger trains stopped running, most local residents left their homes, and sanatoriums and hotels stopped accepting tourists. Now all this is behind us, now the territory in the Caucasus with an area of ​​8600 km? is the independent Republic of Abkhazia, which is restoring the beloved Black Sea resort and building a new Abkhazia. On the coast, the construction of new residential buildings, cottages, boarding houses, hotels of various levels and private guest houses is in full swing.

It should be noted that the cost of residential real estate in the coastal cities of Abkhazia is an order of magnitude lower than in similar resorts in the Krasnodar Territory. The explanation for this is simple: the republic was at war with Georgia for a long time and potential buyers did not want to risk buying apartments or houses for a penny, even in quiet areas of Abkhazia. A mild subtropical climate, clear sea, beaches with small pebbles, an abundance of fruits and vegetables in local markets, visa-free travel, the proximity of Sochi and Sukhumi airports, the good attitude of the local population – all this attracts potential Russian buyers to Abkhaz real estate. And of course, affordable prices for housing and commercial real estate.

Real estate prices in Abkhazia

Consider some of the financial aspects of shopping in Abkhazia and find out who can buy a house by the sea, an apartment or a private mini-hotel on the Abkhaz coast.

Real estate prices in Abkhazia
Nugzar Logua. New Athos etude. 2007

In the spring of 2011 houses and land plots, apartments and households “for business” are offered for sale. For example:

  • House on 2 floors, with a total area of ​​90 sq.m. with all communications, a garden on a plot of 12 acres, in which persimmons, tangerines, grapes, pomegranates, limes grow and bear fruit, in the city of Sukhum it is sold for 2 million rubles.
  • Another similar house with a sea view is exhibited for 850 thousand rubles.
  • Turnkey construction of a cottage in 2-4 months – from 2 million rubles.
  • Household with an area of ​​300 sq. M., Consisting of 10 rooms, two bathrooms, with new plumbing, wooden interior doors, plastic windows, general readiness – 70%. The house is located on a plot of 25 acres, in the yard there is a garage, a gazebo. The seaside is 300 meters away. The house and land are sold for 6 million rubles.
  • Land plots for construction from 10 acres to 1 ha are offered from 350 thousand rubles to 1.5 million rubles.
  • Manors and houses in the mountains, 8-10 km from the sea, are sold at a cost 2-3 times cheaper than on the coast.
  • 2-room apartment in a “five-story building” with a total area of ​​42 meters is offered for sale for 350 thousand rubles.

Prices for residential real estate in Abkhazia, as a rule, are formed in the process of communication between the owner or seller and a potential buyer. Currently, transactions of purchase and sale of any real estate on the territory of the Republic of Abkhazia for residents of Russia are not legally prescribed. Since 2008, work has been underway to create a regulatory framework for the Republic of Abkhazia, which, in general and in particular, should regulate all relations in the field of real estate. Creation of a unified computer database of homeowners, commercial real estate will allow registration of rights to real estate without significant risks in transactions of sale, donation and will.

Buying real estate in Abkhazia
Baslan Lasuria. Embankment. 2007

It should be emphasized that the formation of prices for an apartment or home ownership in Abkhazia is influenced by the condition of the house, taking into account the hostilities, and the historical value of buildings, because, for example, many houses in Sukhum and Gagra are architectural monuments of different years and centuries. The remoteness of real estate from the sea, transport accessibility, infrastructure of the area, prestige and proximity to social facilities are also essential for real estate valuation.

Buying real estate in Abkhazia

Without a doubt, the approaching holiday season 2011 will lead to an increase in the interest of Russian citizens and many domestic companies in real estate in Abkhazia in general. Currently, a number of large investment companies from European countries have already begun to acquire tourist facilities on the Abkhaz coast, planning their further development. in the period until 2014, when the Sochi Olympics will begin just a couple of tens of kilometers away. We can say with confidence that the real estate market of Abkhazia is going through an excellent period, which is characterized by an increase in construction volumes with the help of foreign investors..

Question: who can buy real estate in Abkhazia? – remains open and almost insoluble for foreign citizens, including residents of Russia.

At the moment, land is not for sale in the Republic of Abkhazia, all transactions of purchase and sale of real estate are allowed only for citizens of Abkhazia, and there are only several schemes for the acquisition of residential real estate by Russian citizens, each of which has its own risks.

  1. Purchase of an apartment by power of attorney, which is issued for three years.
    Risks:former owners of real estate do not lose their ownership of the housing during these years and may not renew the power of attorney, given the constant growth in the value of the apartment / house actually sold, but legally owned by them.
  2. Acquisition of housing in Abkhazia for a dummy (Abkhazian).
    Risks:the intermediary, after completing the transaction and receiving the money, remains the formal owner of the purchased property.
  3. Acquisition of real estate by creating a joint venture with the participation of an Abkhaz resident. The Russian buyer (investor) transfers money to the account of the joint venture and pays for the residential or commercial real estate purchased in the Republic of Abkhazia.
    Of course, additional time and money will be required to formalize and register a joint venture, pay for notary services and state fees, on average, the amount will be from $ 2 thousand and one to two months. But such a scheme is almost devoid of risks..

The main problem for investors and buyers of real estate in Abkhazia is the lack of a land cadastre and a unified register of registered rights to real estate. But this issue is currently being resolved at the level of the Government of the Republic. We recommend that those who wish to buy real estate on the cleanest coast of the Black Sea wait for the new law on housing in the Republic of Abkhazia, which will allow them to legally purchase an apartment or house of their dreams.

Rental housing in Abkhazia

In a few words about the rental of apartments, houses and other objects of resort real estate in Abkhazia, it should be noted that this issue is governed by seasonality. It is known. that during the warm months and the traditional vacation period (from May to September), prices for renting residential real estate in Abkhazia increase 5-7 times and range from 300 to 1000-1200 rubles per room / apartment / place in a mini-hotel.

Rental housing in Abkhazia
Alekhnovich Olga. Abkhazia. 2005

The rather high cost of renting housing in the summer is due to the lack of places in hotels, hotels, sanatoriums, boarding houses to accommodate tourists who rush to rest in Abkhazia. The further formation of the real estate market in the near future, and hence the ordering of rental relations, will lead to the availability of regularly updated information on the proposed rental housing options for the summer period and information on rental prices in Abkhazia.

Investing in the future of Abkhazia

Even the highest officials of the republic recommend investing in Abkhazia. Thus, the website of the President of Abkhazia Sergey Bagapsh lists 10 reasons according to which investments in the future of the republic will meet the expectations of investors.

According to the president, the most attractive and promising areas of the economy for investment in Abkhazia are:

  1. Tourism: ski, beach, sports (in particular, equestrian tourism), yachting, round-the-clock, golf tourism, ecotourism, as well as the increasingly popular spa tourism.
  2. Tourist facilities: hotel and entertainment complexes, spa centers, recreational and resort facilities, mooring facilities.
  3. Agro-industrial sector: growing vegetables, fruits (especially citrus fruits), tea and tobacco, nuts, pig breeding, fishing; production of meat and dairy products, canned fruits and berries and juices; processing and filling and packing shops.
  4. Services: banking and credit financial, printing, wholesale and retail trade.
  5. Construction and industry: production of building materials, woodworking industry, small-scale energy, food industry, cosmetics and perfumery.

Even on the basis of these five points, it becomes clear that the Republic of Abkhazia is at the initial stage of great changes in the construction and development of the region, and is a unique vacation spot on the Black Sea coast. And Russian and foreign citizens have a great reason not to miss the moment when there will be a legal opportunity to purchase a house by the sea, an apartment, a cottage or a mansion in the “tangerine paradise” – in sunny Abkhazia.

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