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GEL Devaluation Suspended Sales in the Real Estate Market

“Archi” Group” Director General Ilya Tsulaia says the company is suffering   sales decline.

He estimates that demand decreased   30 percent. In such circumstances Tsulaia does not plan to revise pricing policy, because the company is already working on a low profit margin, although the company launched a new initiative and sells apartments  in GEL.

A minimum price of 1 square meter of housing starts from $ 500 at  “Archi Group”  respectively,  GEL 1 100 in GEL.

Tornike  Abuladze,  Executive Director of the  development  company “Arci” and the Developers’ Association representative,  estimates the current trends and says that GEL instability has decreased sales .

Amiran Tsetskhladze ,  “Adjara Development” ,  talks about sales decline. In his words,  GEL devaluation negatively affected his company. In particular, sales decreased 80 percent because people were mostly dependent on  credits.

As to whether the pricing policy will be revised, Tsetskhladze notes  that the decrease in prices will not change anything, because there are no clients who want to buy the apartment. The price of one square starts from $ 380 in the company.

George Zakaidze, Director of  “Tiflis Development says    the opposite. He says that the devaluation of the GEL  has not affected sales, because their segment are people working abroad, that is, those who have income in foreign currency.