Tokenization in Georgia: Bridging Real Estate and Blockchain

Today we’re heading to Georgia — a country of ancient wine regions, soaring Caucasus mountains, and a fast-growing tech scene. Georgia has become known as one of the most crypto-friendly countries, and now it is exploring blockchain in real estate. In simple terms, tokenization means turning a property into a digital token so that people can own a small share without needing a lot of money. This concept is reshaping how people invest in property around the world. Georgia is slowly joining this trend, laying the groundwork with blockchain-based property systems and attracting innovative projects. In this overview, we’ll see how tokenization is developing in Georgia – from the land registry and legal steps to the first tokenized projects and what might come next.

Blockchain Foundations in Georgia’s Property Market

Georgia made an early name for itself by using blockchain technology in its land administration. In fact, the government was one of the first to confirm property actions on blockchain. This means that when property ownership changes, it gets recorded on a secure digital ledger. Georgian homeowners receive digital title certificates backed by cryptographic proof, as each land registration is verified through the Bitcoin network. This blockchain-based land registry cut down paperwork and boosted trust, because ownership records became tamper-proof and transparent. This groundbreaking program began in 2016 and has since registered over 300,000 property titles on the blockchain in partnership with a private tech firm.

Building on this foundation, Georgia has continued to digitize real estate processes. In early 2025, the National Agency of Public Registry (NAPR) launched a new Smart Contract system for property transactions. This system lets buyers and sellers finalize sales remotely by signing documents digitally and paying online. Essentially, payment and title registration now happen simultaneously through a smart contract. For example, someone in London could sell an apartment in Tbilisi without flying there – once the digital contract is signed and the funds are sent, the blockchain-based system updates the property registry automatically. This innovation greatly speeds up deals and reduces the need for in-person paperwork.

A Crypto-Friendly Environment

One reason tokenization is possible in Georgia is the country’s welcoming stance toward cryptocurrency and tech innovation. Georgia does not tax crypto trading gains – the capital gains tax on crypto is 0% for local tax residents. Using cryptocurrency to buy something is treated like a legal barter exchange, so there are no extra transaction taxes either. These friendly policies have attracted many crypto entrepreneurs and investors. Georgia is increasingly popular as a crypto destination, and even digital nomads are moving in to take advantage of the stable environment. For example, the U.S. company Bitfury built large bitcoin mining centers in Georgia, making the country briefly the world’s second largest cryptocurrency mining region after China. Cheap electricity, affordable land, and tax incentives helped drive this crypto boom.

Regulators are also working to keep the industry safe and reputable. The National Bank of Georgia has been drafting rules to regulate the crypto market. These planned laws include licensing exchanges and enforcing anti-money laundering checks for crypto businesses. The goal is to support innovation while preventing abuse. So far, Georgia has eased into crypto regulation gradually. The country’s embrace of crypto has not yet translated into widespread use of other advanced blockchain tools – as observers note, Georgia is tech-friendly but has been slower in other Web3 areas. Still, steps like the smart contract property system show that Georgia is starting to adopt new technologies beyond just cryptocurrency trading.

The First Tokenized Real Estate Projects

Real estate tokenization in Georgia is just beginning, but one milestone project has already made headlines. In March 2023, the international hotel chain Novotel partnered with tech firm DelNorte to tokenize a new hotel and apartment project in Batumi, a resort city on the Black Sea. This project, called Novotel Living Batumi, consists of high-end apartments in a luxury complex managed by Novotel. The complex includes two 13-story towers with amenities like a private beach, a childcare area, and an infinity pool overlooking the sea – highlighting why it’s a prime candidate for attracting global investors.

The Novotel-DelNorte initiative will allow both local and international investors to own a piece of a Georgian property without buying an entire apartment. According to reports, the partnership will improve the security and transferability of transactions by using blockchain to record ownership. DelNorte’s technology uses smart contracts to divide the property into digital shares. Each token represents a fraction of an apartment and serves as proof of ownership backed by the blockchain. This means an investor could purchase, for example, 1% of a Batumi apartment as a token, and later sell that token easily if needed. The blockchain ensures that every token holder’s share is recorded and cannot be altered, which prevents fraud.

By opening the door to fractional ownership, tokenization makes real estate investment more accessible. Instead of needing hundreds of thousands of dollars to buy a whole flat, an investor might spend just a few hundred dollars to buy a token representing a small share. This approach is similar to trends in other countries – for instance, tokenization in Spain has opened doors to own a slice of real estate from as little as €100. In Georgia, the Novotel project will test how well this model works. If successful, it could demonstrate a new way to fund real estate developments and attract diverse investors.

It’s worth noting that Georgia’s real estate market is attractive to foreign buyers even outside of tokenization. There are few restrictions on property ownership (apart from rules against foreigners buying agricultural land), and the buying process is relatively straightforward. Registering a property sale in Georgia can be done in a single day thanks to efficient e-government systems. This investor-friendly climate means platforms and developers have a solid base if they want to introduce tokenized offerings. We are already seeing local startups entering this space – for example, platforms like Tokens.ge offer tokenization services (a marketplace to turn real assets into tokens). While still nascent, these home-grown efforts show growing interest in tokenized real estate within the country.

Challenges and Regulatory Outlook

Even with promising projects, tokenization in Georgia faces some hurdles. One challenge is the legal framework. Georgia currently does not have specific laws for tokenized securities or real estate tokens. In practice, a token that represents a share of a property would likely be treated as a security (similar to a stock) under existing regulations. This means compliance with securities laws is required – such as proper disclosures and investor protections – even if the asset is digital. Many countries grapple with this issue, and Georgia is no exception. Clarity from regulators will be important to give tokenization projects confidence. A positive sign is that authorities are aware of the trend and have been studying how to manage crypto assets safely.

Another challenge is building public awareness and trust. Real estate is a traditional sector, and many investors in Georgia may not be familiar with blockchain or tokens. Educating the market on how tokenization works and ensuring user-friendly platforms will be key. Fortunately, Georgia’s success with digitizing its land registry could help: people have already seen the government use blockchain to secure property records. This may make them more open to the idea of blockchain-based property investments.

On the technical side, reliable infrastructure is needed to support tokenized real estate trading. This includes secure digital wallets, trading platforms, and perhaps secondary markets where people can easily buy or sell property tokens. These components are still being developed. International standards (like established Ethereum token protocols) can be adopted to ensure Georgian tokens are compatible with global markets. Working with experienced technology providers could help Georgia leapfrog some of the early technical pitfalls.

Global Momentum and Georgia’s Prospects

Georgia’s move toward real estate tokenization is part of a bigger global wave. Worldwide, tokenized property is gaining momentum, and countries are racing to adapt. In nearby Kazakhstan, the central bank recently launched a sandbox for property tokens – a controlled pilot program that lets developers issue digital tokens tied to real estate. The first project in that sandbox allowed small fractions of an apartment building to be traded for as little as 10,000 tenge (the local currency). Officials there say the results will guide a full law next year, showing how governments in the region are actively testing tokenization models.

Meanwhile, other markets have already gone further. Dubai and Singapore are already trading tokenized towers and other properties, fully integrating blockchain into real estate financing. Major economies like the United States and countries across Europe are also exploring regulatory frameworks to accommodate tokenized assets. One our report noted that government-backed projects around the world are pushing tokenized property into the mainstream. In other words, the concept of splitting property into digital shares is no longer science fiction – it is happening in practice, from luxury condos in New York to office buildings in London and beyond.

For Georgia, this global context is encouraging. As a smaller nation, Georgia can observe what works elsewhere and adopt best practices. The country has a history of positioning itself as business-friendly and quick to reform. If it creates clear guidelines for tokenization, it could attract international investment and technology firms interested in launching projects in the region. Already, interest is spreading in Eastern Europe and the Caucasus. For example, even in nearby markets like Albania, tokenization is emerging as a new investment path for real estate. Georgia would not want to fall behind if its peers begin offering blockchain-based property deals.

Beyond the hype, the advantages of tokenized real estate are practical. Property developers have found a flexible, lower-risk funding path by issuing tokens instead of relying solely on bank loans. On the other side, everyday investors get the chance to invest in assets that were once out of reach – they can buy into a hotel or an office building with even a modest sum, diversifying their portfolio globally.

Conclusion

Tokenization in Georgia’s real estate sector is still in its early days, but the pieces are falling into place. The country has proven it can integrate blockchain into public services like land registration, building trust in digital solutions. It has nurtured a crypto-friendly environment that attracts innovators and keeps taxation simple for digital assets. And now, pilot projects like the tokenized Novotel Batumi development are testing how global investors can participate in Georgian property markets in a new way.

There is a clear narrative forming: Georgia is blending its traditional real estate market with cutting-edge blockchain technology. The path is not without obstacles – legal clarity and market education are needed – but the momentum is growing. If the early efforts succeed, tokenization could bring more liquidity and access to Georgia’s property market. Imagine ordinary people around the world able to invest small amounts in Georgian hotels or apartments, or local developers raising funds faster by issuing tokens to many buyers. These scenarios illustrate the promise of tokenization.

In summary, Georgia may not yet be a center of real estate tokenization, but it is steadily laying the groundwork. The interest from big players like Novotel, combined with government openness to smart contracts and crypto, suggests that Georgia’s real estate industry is gearing up for a digital transformation. By watching global trends and crafting wise regulations, Georgia can ensure it remains an attractive, innovative destination in this emerging field. For now, investors and innovators are keeping an eye on Georgia. The coming years will reveal whether tokenization truly takes root, potentially turning Georgia into a regional leader in digital real estate investment. It will be fascinating to watch how this blend of old and new unfolds in the years ahead.