Home ///
Investment ///
Before Buying Off-plan: How to Assess the Risks of Purchasing an Apartment in a Pre-Construction Property

Before Buying Off-plan: How to Assess the Risks of Purchasing an Apartment in a Pre-Construction Property

Discover the key factors to evaluate when purchasing an apartment in a development project—and the essential questions you should ask the developer before making a commitment.

Any major decision in life requires thoughtful consideration and careful preparation—especially when it involves something as complex and financially significant as purchasing real estate.

Risks must be minimized to the greatest extent possible when substantial sums are at stake. A single mistake can prove costly, potentially affecting not only your finances but also your mental and physical well-being for years to come.

In Georgia, we still vividly remember hundreds of families whose lives were severely disrupted by irresponsible developers, as well as cases where the same property was illegally sold three or even four times.

Over time, people have learned from their own experiences—and from the mistakes of others—gaining greater awareness and caution. Yet the risks associated with real estate have not disappeared. The recent widely publicized case of “Sfero Holding,” which left dozens of buyers affected, is just one reminder.

Uncertainty increases significantly when a project is newly launched and you are purchasing an off-plan property. In such cases, particular attention must be paid to location, geological and seismic stability, the developer’s reputation, legal compliance, construction quality, investment potential, and more. Asking timely and well-structured questions is part of a sound strategy that, if not fully, then at least substantially protects buyers from severe consequences.

In this article, we aim to simplify the process by providing comprehensive guidance on what to consider in advance and how to prepare for a meeting with a developer. Before proceeding, we would like to remind you that Kedaro Group assists clients in identifying reliable developers and favorable investment opportunities. Consulting an experienced specialist beforehand can be invaluable: +995 593 61 81 81.

Let us now examine what deserves your attention when purchasing an apartment in a development project and what questions you should ask.

Location

First and foremost, you select the location according to your budget and lifestyle needs—whether in the city center or on the outskirts. For many regional buyers purchasing property in Tbilisi, proximity to major entry routes into the city is an important consideration to avoid long commutes and traffic congestion. Young families frequently choose neighborhoods close to their parents, anticipating family support in raising children.

Beyond these practical considerations, you should evaluate:

The long-term development prospects of the district
Accessibility of public transportation
Availability of schools and kindergartens
Environmental conditions
Planned infrastructure projects
Whether the area is oversaturated with construction
Street noise levels

Research whether new roads, parks, or shopping centers are planned nearby. Is intensive construction ongoing in the vicinity? These factors directly influence future price appreciation.

Developer Reputation

Perhaps the most critical factor in selecting an apartment is the developer’s reputation and credibility. You should determine:

How many years the company has operated in the market
Which projects it has completed
Whether projects were delivered on schedule
The quality standards applied to construction materials
Whether all documentation is in order
Whether the company is affiliated with or a successor to any bankrupt developer
Who the founders and key stakeholders are

It is advisable to review feedback on social media or speak directly with previous buyers who have purchased completed units from the developer.

Legal Considerations

The legal dimension is equally essential. Pay attention to:

Land ownership status
Construction permits
Registration in the Public Registry
Contractual terms
Commissioning and occupancy permits

Particular scrutiny should be given to the preliminary purchase agreement. Have it reviewed by a lawyer. Carefully examine penalty clauses and conditions related to delays.

You should also consider how your funds are protected if the project is not completed as planned. Is there an escrow account? Does the company have bank backing? What happens if deadlines are not met? What compensation mechanisms are outlined in the contract? How are disputes resolved? Is there third-party insurance or a performance guarantee?

Additionally, clarify what procedures apply if construction defects are discovered after handover.

Geology, Safety, and Compliance with Construction Standards

Georgia’s mountainous terrain—and Tbilisi’s hillside developments—make geological assessment particularly important. In many cases, issues arise not from the structure itself but from unstable soil conditions. Therefore, verify:

Whether a geological survey was conducted prior to construction
The findings of the geological report and construction permit documentation
Soil classification (solid, loose, medium density)
Presence of groundwater
Landslide risk
Type of foundation used

Given that Georgia is located in a seismically active zone, you must ask: What seismic standards does the building meet? For how many points on the Richter scale is it designed? Who oversees technical and construction supervision?

Fire safety is equally critical:
Is there a fire protection system? Emergency staircases? Automatic detectors? Proper ventilation in underground parking areas?

Daily security measures should also be assessed:
Security personnel, CCTV systems, access control, elevator certification and origin.

If a developer cannot provide clear and documented answers to these questions, this should raise concerns.

Apartment and Building Layout

Beyond structural considerations, evaluate the apartment’s functionality. Projects often look attractive in renderings but prove impractical in daily life. Consider:

Street-facing versus courtyard-facing orientation
Floor level (taking into account noise, air quality, and elevator reliability)
Views
Layout of staircases, elevators, and corridors
Functional efficiency of interior space
Natural lighting
Balcony or storage areas
Kitchen placement
Bathroom layout
Sound insulation
Facade restrictions

Developers may promote large terraces as lifestyle features, yet in reality they may be underutilized due to seasonal weather extremes, dust, and noise. If priced equally per square meter, interior functional space may offer better long-term value.

Renovation and Construction Quality

Clarify the delivery condition of the apartment: what exactly is included in “black frame,” “white frame,” or “green frame” status? Calculate the cost of bringing a black frame unit to a finished state. Determine the timeline allowed for completing renovations.

Inquire about construction materials, energy efficiency standards, and smart building systems.

Pricing and Additional Costs

Research the average price per square meter in the area and assess whether the offer is competitive. Determine whether branding artificially inflates the price.

For investment purposes, analyze rental potential and projected capital appreciation over the next 3–5 years.

Buyers often underestimate additional expenses beyond purchase and renovation costs, including:

Utility connection fees
Operational costs
Monthly utility bills
Building management fees
Parking costs
Elevator and security maintenance
Registration fees

Purchase Terms

Clarify the payment schedule: initial deposit, interim installments, and final settlement.

Determine:

Minimum down payment
Availability of interest-free internal installment plans
Duration of developer financing
Penalties for delayed payments
Whether pricing is fixed or linked to currency exchange rates

Ask whether customized payment schedules or discounts are available.

If bank financing is involved, clarify:

Which banks cooperate with the developer
At what construction stage mortgage financing is available
Whether additional collateral is required
Whether special partnership terms exist
Whether the interest rate is fixed or variable

Always ask: What additional costs should I include in my total budget?

Warning Signs

Be cautious if:

The developer refuses to provide documentation
Answers are vague
No geological assessment exists
You are told “everything is fine” without evidence

Ultimately, purchasing real estate should be approached as a long-term financial decision. Emotional impulses should be set aside in favor of rational evaluation. The more thoroughly you assess risks, costs, and long-term prospects in advance, the more secure and predictable your investment will be in the future.

If you are considering investing in real estate in Georgia, Kedaro Group is ready to provide you with professional guidance.