Plekhanov Palace is the best project that we have seen for smaller investors during the course of 2019.  Buyer who are able to act quickly enough to secure one of the limited number of smaller apartments can expect to make a return of close to 15% net per annum.

Plekhanov Palace is located in the popular and trendy Plekhanov area, close to the major tourist streets of Aghmashenebeli and Marjanishvili, which is the most popular part of the city for visitors from the Middle East.  It’s also a very popular area with the young and trendy crowd due to the fact that the famous Fabrika centre is located right in the heart of this area.  Plekhanov Palace is located just 800m from the original Fabrika.  However, the owners of Fabrika will be opening a second location which is practically next door to Plekhanov Palace.  The project is located just 10 minutes’ walk from Marjanishvili Metro.  Closer still is Station Square, which is less than 250m from here.  Station Square is where Tbilisi’s two metro lines intersect and is also Tbilisi’s main train and bus station, allowing quick and easy access to all area of Georgia.

Plekhanov Palace looks more like a luxury boutique hotel than it does a typical high-rise residential building as it is a low-rise building of just six floors.  The ground floor is all commercial where the units are nearly all sold out already, meaning that owners will have some useful stores right on their doorsteps.  The project will be finished to a very high standard, with grey marble at ground level and the remainder of the building finished in traditional Georgian honey-coloured travertine stone.

Although the building only contains 27 apartments, Plekhanov Palace offers better facilities than many much larger buildings.  At the rear of the building is a pleasant green area containing a children’s playground.  Highly useful for those intending to rent out their apartments here, the project will have a concierge service in an elegant lobby area.  Parking places are available here at an additional cost of $7,000 per place.

Plekhanov Palace has been under construction since mid 2018 and is now getting very close to completion, which is currently scheduled for March 2020.  This means that buyers here don’t have to wait too long before they can start receiving rental income from their apartments.

The standard payment plan here is the standard 30% upon contract, with the remaining 70% paid in monthly installments throughout the remainder of the build.  Buyers choosing this payment plan will pay $950 per m2 for an apartment in ‘white frame’ condition, which means that they should allocated an additional $150 per m2 for finishing, plus another $5,000 for good quality furniture.  Those who pay 100% cash on contract can get a good discount, however, which would bring the price down to $900 per m2.

There is currently a wide range of apartment sizes at Plekhanov Palace to choose from, starting at just 37.2m2 one-bedroom apartments, with a starting price of just $31,620 with the cash discount.  Adding the cost of finishing and furniture would make the total investment required to be just $42,130.  At just $39 per night in the summer and $34 per night in the winter, this small unit is forecast to generate yields of 14.7% per annum.  Currently there are just three smaller units available as the majority of remaining one-bedroom apartments are in the 58-80m2 range.  For anyone looking for a two-bedroom apartment, there are also some compact and affordable options available from 58.6m2.

For buyers quick enough to secure the smaller apartments, there is no higher yielding project in Tbilisi currently.

Floor Plans & Pricing

NameBedsBathsSizePriceAvailability 
One-Bedroom Apartment1156.6($53,770)View

Property Features

  • 24/7 Security
  • Children's Playground
  • Close to Metro
  • Concierge Service
  • Gardens
  • Parking

    Location