What to Check Before Buying Property from a Developer in Batumi to Minimize Risks (+Developer Verification Checklist)

Buying property at the construction stage is a popular strategy among investors in Batumi. Prices for new developments — especially at the foundation stage — are significantly lower than for completed projects, offering high potential returns. However, behind this potential profit often lie risks that, without proper due diligence, can lead to wasted time, money, and nerves.

The goal of this article is to explain what risks you take when purchasing real estate at the construction stage in Georgia and provide a practical checklist on how to choose a reliable developer in Batumi to minimize losses.

Why buying at the construction stage seems profitable — and what’s the catch

Investors choose to buy apartments in Batumi for obvious reasons: a low entry threshold, a growing tourist flow, and rental yields higher than in many European countries.

At the excavation stage, prices are typically 25–40% lower than in completed buildings, and by the time the project is delivered, the property value may significantly increase. For those investing in Batumi’s new developments, this offers the chance to profit both from price growth and future rental income.

But there’s a flip side. When demand rises, inexperienced developers enter the market, bringing risks such as construction delays, missing permits, poor quality control, and a lack of guarantees.

Understanding these nuances is the first step toward making an informed decision when choosing a developer in Batumi and avoiding common mistakes.

Main risks when buying at the construction stage

To understand how to avoid problems, it’s important to categorize the risks. They fall into three groups: legal, financial, and reputational. Each can affect the timing, cost, and safety of your investment.

Legal risks

The first step is to ensure the project is being built legally. Any due diligence of a developer in Georgia starts with document verification:

•  The absence of land ownership rights: the plot may be leased or mortgaged.
• Missing or invalid building permits: the project could later be declared illegal.
• Non-compliance of the purchase agreement with Georgian law — for example, if the contract does not include registration in the Public Registry, leaving the buyer unprotected.
• Deviations from the approved project: changes in the number of floors, layouts, or even the building’s purpose during construction.

Financial risks

In Batumi, many developments are financed by buyers’ money, which increases investor vulnerability.

• Slow sales may cause the developer to run out of cash to finish construction.
• Financial shortfalls can lead to delays or project freezes.
• There are often no escrow or insurance mechanisms to protect buyers’ funds.
• Delays in delivery are common, especially among developers running multiple projects simultaneously.

Reputational risks

Beyond legal and financial issues, the developer’s reputation also matters.

• New companies without completed projects may promise high returns but lack experience or financial stability.
• Some developers in Batumi avoid publishing progress reports or construction photos, reducing transparency.
• There are cases where companies change legal entities, leaving previous obligations behind.

All these risks can be minimized if you thoroughly check the developer beforehand — confirm their documents, financial stability, and project history.

How to choose a reliable developer in Batumi

Before signing a contract or transferring money, make sure the developer is trustworthy, the project is legal, and your investment is protected. This verification doesn’t take long but can save you thousands of dollars and spare you from unfinished construction.

Legal due diligence

Verify land ownership.
Request an extract from the Public Registry of Georgia. It should confirm that the land belongs to the developer and is not under mortgage or arrest.

Check the building permit.
The document, called a Building Permit, must be issued by the City Hall and remain valid. Without it, the project cannot be legally completed or registered.

Review project documentation.
Ask to see architectural plans, layouts, and materials. This helps confirm the project matches what is being advertised and hasn’t been altered mid-construction.

Read the contract carefully.
Check for:

•  project delivery date and penalty for delay;
•  fixed vs. floating price;
• refund procedure if construction halts;
• registration of the contract in the Public Registry (mandatory!).

Financial and reputational verification

Research the developer’s track record.
Find out how many projects have been completed. Look for reviews on Google Maps, forums, or social media.

Check the company’s registration status.
On the Justice Ministry website (https://www.justice.gov.ge/), you can see how long the company has existed, who the founders are, and whether there are any lawsuits.

Confirm banking or insurance partners.
If a developer works with a bank, it’s a good sign — the bank verifies the project’s legality. Insurance of deposits or liability coverage also increases security.

Technical verification

Determine the construction stage.
The closer the project is to completion, the lower the risk. Ideally, buy when the structure and engineering systems are already in place.

Evaluate materials and build quality.
Check what materials are used, whether there is insulation, and what kind of windows and doors are being installed. Ask about contractors for utilities and elevators.

Inspect the infrastructure.
Ensure there are access roads, water, electricity, and sewage connections, as well as landscaping — all of which affect future value and rental demand.

Understand how your funds are protected.
Ideally, payments should go through an escrow account — the developer receives funds only after completing work stages. If not, clarify where your money goes and under what conditions it can be refunded.

Tip: If you don’t live in Georgia, delegate the verification process to professionals. BD Realty offers free assistance to investors in checking developers — from document analysis to contract registration in the Public Registry.

How to minimize risks

Even when buying at an early stage, you can reduce risks significantly by taking a systematic approach and not relying solely on promises.

• Work through trusted agencies that conduct developer audits, verify licenses, legal status, and project quality.
• Always register the purchase agreement in the Public Registry — it’s your main legal protection.
• Read reviews, visit the construction site in person, or arrange a local inspection.
• Verify all permits and land ownership documents before making any payment.
• Never transfer money to individuals or unofficial accounts without contracts and guarantees.

Buying property at the construction stage in Batumi can be a high-yield investment — but it also carries serious risks. Our agency helps clients navigate every step of the process, including legal audits, permit checks, and contract registration.

Contact BD Realty to get a free developer verification checklist before purchasing an apartment in Batumi.