The 2017 Azerbaijan International Real Estate & Investment Exhibition (RecExpo), which took place in Baku on 28-30 November, turned into a success for Red-Co. Several participants of the aforementioned exhibition expressed their interest in investing in the Georgian developer’s 5-star alpine resort project “New Gudauri.” Property Georgia spoke to the head of marketing at Red-Co, Maia Bichikashvili.
“New Gudauri,”Georgia’s one of the most successful alpine resorts, which is being developed by Red-Co, is constantly attracting interest from international investors. It is therefore not surprising that your project received special attention at the international real estate exhibition in Azerbaijan. What are the specific factors about “New Gudauri” that the investors find so appealing?
RecExpo is one of the most prestigious events in the field of real estate. Various development projects were presented in Baku by local and international companies alike, with “New Gudauri” indeed being a standout project among them. There has been particular interest from neighboring countries, where Georgian real estate is seen as a successful field to invest in. That is precisely what the concept of a hotel-type apartment is all about – purchasing real estate, renting it out and obtaining profit. This is a ready-made business, where customers can even choose not to worry about the rental aspect by entrusting it to us. “New Gudauri” is increasingly in demand, which will reflect itself in the volume of profits, allowing buyers to obtain return on investment within 5 years on average. A good business deal appeals to everyone, and Azerbaijan was no exception. It is also worth noting that the country as a whole is appealing for investors: doing business here is easy, the environment is safe, up to 100 countries enjoy visa-free travel, and most importantly, foreign nationals can purchase real estate and complete all the necessary registration procedures in a short period of time.
Why should we buy a property in “New Gudauri” today? What are the advantages of early investment based on the financial model?
Investors are always looking for projects that are affordable at the initial stage and whose value increases dynamically. That is why purchasing real estate at resort “New Gudauri” today is a lucrative business. Based on the statistics from the past 5 years, real estate prices in Gudauri increased by 40-50%. The development of the resort, which includes further expansion and introduction of high-end international brands, will inevitably be accompanied by a rise in prices. That is why timely investment is important, especially for individuals on middle income who are looking for profitable ways to invest their money. Very soon, not everyone will be able to afford to purchase a property at the resort that is to have the 5-stars. Prices for a property without fit-out currently start from $900 per square metre, which is naturally more than last year. By the closing stages of the project, prices are likely to reach the $1300-$1500 mark. And of course the development of new projects on the resort and rapid growth of its touristic potential will raise the prices of this property much more.
What does the future development of the 5-star international resort involve?
Our goal would be to establish “New Gudauri” on the list of successful European resorts. We are introducing world-renowned brands such as Radisson Blu and are having advanced approval with Sheraton. We also have good news for skiers, as one of the most famous ski clothing and accessories brands will open a store in “New Gudauri.” The initial stage of development saw us mainly build residential properties, which are already being used commercially. This strategy has been justified by the growth of tourism in Gudauri. The next stage involves attracting more and more renowned foreign brands, which will turn “New Gudauri” into an internationally recognized and valued resort.