Status of a Land Plot and Why It's Important to Consider

Land plots are categorized as either "agricultural" or "non-agricultural". In cities, more than half of the plots typically have a non-agricultural status. In larger cities, non-agricultural plots make up over 90% of the total, while in rural areas, the majority of plots are agricultural.

Non-Agricultural plots are, by definition, intended for non-agricultural use. They can be used for the construction of both residential and non-residential buildings.

Agricultural plots, on the other hand, are further classified as arable lands, hayfields, pastures, and personal household plots. Private residential buildings can be built on Agricultural plots only when it’s a personal household plots. Consequently, many private houses in Georgia are located on agricultural personal household plots.

So, if you are not a resident of Georgia and plan to buy a house or land plot there, it's important to consider the plot's status.

Starting in 2019, when Georgia's law on agricultural land ownership came into force, only Georgian citizens gained the right to acquire agricultural land.
*The exception is if foreign citizens inherit agricultural plots.
In all other cases, non-residents of Georgia cannot purchase agricultural land in the country.

Initially, a land plot is given an agricultural status upon registration if it does not already have a commercial facility built on it, or if there is an approved project for a commercial facility. If the plot has a non-agricultural status, a private house, a commercial facility, or a residential building can be constructed on it, in accordance with the project approved by the city hall.

Thus, to change a plot's status from agricultural to non-agricultural, an owner of the land plot must prepare a construction project for a commercial facility or a residential building, get it approved at the city hall, and submit the approved project to the Public Register for status change. Besides the project, you need a business plan, a financial plan, and a financial guarantee that is required to confirm the project's feasibility.

If you're a non-resident of Georgia planning to buy a private house for living or summer relaxation in the fresh air surrounded by nature close to the sea, pay attention first of all to non-agricultural areas.

Although non-agricultural land plots can be more expensive and offer fewer choices compared to agricultural lands, purchasing them is typically easier and could potentially be more cost-effective in the end. 

After all, as we know, time is money!