Storage Unit
Cave · Storage Room · Pantry Space · Lock-up Storage · Basement Storage Unit
Definition
A storage unit (frequently referenced as a cave, storage room, or lock-up pantry) is an enclosed non-residential space located within the basement, underground levels, or residential floors of a multi-unit building. In real estate transactions, it is acquired either as an auxiliary space tied to an apartment or as an independent title with its own cadastral code.
In detail
Definition and Operational Function
A storage unit within a multi-family residential or commercial development is a physically demarcated, secure space intended for non-residential utility, such as long-term storage of personal effects, athletic gear, or household equipment. In European real estate terminology, these areas are often referred to as 'caves' or 'cellars,' whereas modern international development practices classify them as lock-up storage rooms or utility bays.
Legal Title and Registration Mechanics
In modern property markets, storage units fall under one of two primary legal classifications:
1. Independent Real Estate Property: The storage space receives its own unique cadastral code (sakadastro kodi) registered at the public land registry (in Georgia, the National Agency of Public Registry or NAPR). As a standalone immovable asset, it can be bought, sold, mortgaged, or leased independently of any residential unit in the building.
2. Appurtenant Auxiliary Space: The storage unit is legally bound to a primary property (such as an apartment or penthouse) under a single master title deed. In this structure, ownership cannot be severed or sold separately without official legal division and re-registration.
When purchasing off-plan or newly constructed developments, investors must confirm whether the storage space is individually deeded or classified as shared common property of the homeowners' association (amkhanagoba).
Commercial Valuation and Rentability
Storage space is valued on a price-per-square-meter basis, typically at a discount compared to residential living areas within the same building. High-density urban areas frequently feature a shortage of storage, making dedicated units attractive value-add additions. Adding a private storage unit to a residential rental property often commands higher tenant retention and marginal rental premiums, particularly in modern multi-story developments where living space is optimized for efficiency.
Tax Treatment and Developer Pricing
In primary market purchases directly from property developers, non-residential spaces such as storage units are subject to value-added tax (VAT) standard rates (18% in Georgia). Under local tax regulations, any developer-quoted price for a storage unit must strictly include this 18% VAT, preventing undisclosed tax surcharges at closing.
Georgian context
In the Georgian real estate market, storage units (locally referred to as saklaobi or storage spaces) are increasingly offered in modern high-rise developments across Tbilisi and Batumi. Historically omitted in Soviet-era construction or restricted to unorganized basement areas, contemporary developers now sell structured underground storage blocks with independent legal status. The National Agency of Public Registry (NAPR) permits developers to assign distinct sub-cadastral codes to individual storage rooms, enabling foreign and domestic buyers to hold clear, unencumbered title deeds. If purchased directly from a developer, the transaction price is subject to Georgia's standard 18% Value-Added Tax (VAT), which is legally required to be included in the developer's advertised price. Furthermore, the appraised value of an officially titled storage unit counts toward the total real estate investment total required for Georgian residency by investment, provided the total qualifying real estate portfolio meets or exceeds the mandatory $150,000 USD threshold.
Real example
An investor acquires a 75 m² residential apartment in Tbilisi for $145,000 USD and adds an 8 m² underground storage unit priced at {{data:storage_unit_price_sqm}} per m², totaling $5,000 USD. The developer provides a sale contract reflecting $150,000 USD combined, inclusive of the mandatory 18% VAT on the primary transaction. At closing, the NAPR issues two distinct title registrations: one for the primary residential apartment and a secondary cadastral code for the storage unit. The certified valuation of both titled assets totals $150,000 USD, successfully meeting the minimum threshold for the investor to apply for a Georgian short-term residence permit.
Common mistakes
- ×Assuming a basement storage area is private property without checking NAPR cadastral registration.
- ×Confusing unassigned building common area (HOA space) with a privately deeded storage unit.
- ×Expecting developer prices to exclude VAT, when Georgian law mandates that 18% VAT is included in advertised prices.
- ×Failing to verify whether the storage unit has an independent cadastral code or is permanently tied to an apartment deed.
- ×Overlooking physical site checks for humidity, ventilation, and underground utility pipe runs.
Frequently asked questions
Can a foreign citizen buy a storage unit in Georgia without buying an apartment?
Yes. Non-residents have the legal right to purchase non-residential property, including independently deeded storage units, in Georgia. The unit must have its own cadastral code registered at the National Agency of Public Registry (NAPR).
Does buying a storage unit count toward Georgia's $150,000 USD residency threshold?
Yes. Real estate investment for short-term residency can include multiple titled properties—such as apartments, parking spaces, and storage units—provided the total value appraised by an accredited surveyor reaches or exceeds $150,000 USD.
Is VAT added on top of the developer's advertised storage unit price in Georgia?
No. Georgian law dictates that 18% Value-Added Tax (VAT) on primary market real estate must always be included in the developer's quoted purchase price.
How can I verify if a storage unit is legal and privately owned?
You must request an official extract from the Public Registry (NAPR). The extract confirms whether the space has a dedicated cadastral code, lists the verified square meterage, and details registered ownership or encumbrances.
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