Coronavirus and the real estate market in Georgia - has the price really dropped? Rental difficulties and recommendations for tenants.

Did the coronavirus really affect real estate prices, did they really fall? Don't listen to the stories on Facebook or Instagram where people write that now you can rent fancy apartments that used to cost $1000 for $200. These stories are far from the truth because no one will kill such apartments.

Landlords understand perfectly well that if they keep such property intact and in good condition, then in season or when borders open, they can rent it out at their own price. The season will come someday, and the borders will not be locked forever. Although there is a suspicion that this year's winter season may not work out due to the pandemic. However, the next season may well be, and no one sees the point in killing such property.

So, the price tag has dropped significantly, but it always drops in the off-season in countries where the main income from rental housing comes from tourists. In the off-season, renting a property for six months, say, until May when tourists flood the country again, is quite a profitable story. Of course, in the off-season, apartments that cost $700, $800, $1000 in the summer can easily be found and agreed upon, for example, for $400 per month with a six-month lease.

Difficulties of renting at reduced prices

It is important to understand that the coronavirus crisis will eventually end, borders will open, and a stream of tourists will flock here, especially to Tbilisi. Tbilisi during New Year's is like a winter fairy tale, a wonderful place for family vacations and entertainment. So, if you managed to rent an apartment during the quiet period that used to cost $700 for $300, be prepared for the fact that the owner of the property will simply ask you to vacate from the next month because they plan to rent the apartment on a daily basis.

If the apartment costs $60 per day, for example, and you were lucky enough to rent it for $300 per month, then make sure to sign a contract. As the saying goes, no contract, no conversation. Although in one of the previous articles, we already mentioned that it is not customary to sign a contract in Georgia.

Here, everything depends directly on the landlord. Georgia is people, it is verbal agreements. If we recall our experience of renting an apartment in Europe or Moscow, we always had a clear and concise contract with penalty sanctions in case of non-compliance with its conditions by either party. Here, however, there is a conditional "word of the merchant" - a verbal contract.

Again, prices have dropped significantly now. They are falling, but only for a while. It is important to understand that when a good apartment with repairs and decent furniture brings the owner, for example, $60 or $80 in season, it makes no sense to continue to keep a tenant for $300 just because they verbally agreed to rent for a year. This is the real picture of relationships with a landlord that one has to adapt to.