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Sales of New Apartments Fell

Sales of New Apartments Fell

Recently, sales of new apartments have decreased due to the difficult economic situation in the country.

According to the developers, due to the devaluation of the national currency, people refrain from making major purchases, while banks refrain from lending.
According to General Director of “Archi Group” Ilya Tsulaia, sales were down, but the situation is not catastrophic. “In general, in comparison with 2014 sales decreased by 30%, but basically it concerns luxury apartments – their sales were down by 70%, while the smaller and cheaper – by about 10%,” – he notes.

In his words, this is due to three reasons.

“First, banks are reluctant to grant mortgage loans, secondly buyers are afraid to borrow in dollars, because they have income in GEL. Third, there is also a psychological factor – in a crisis people try to save money and wait for stabilization of the situation. In February – March the situation was very dramatic, but gradually buyers adapted to the new reality and started to buy apartments, but not as actively as before, “- he says.

The Azerbaijani company AC – Georgia also speaks about a decline in sales.

According to the head of marketing department of the company Keti Adeishvili, the devaluation of GEL seriously reduced interest in buying real estate. “In response to this situation, the company offers customers a new product – together with TBC Bank customers will be able to get a mortgage with a minimum initial contribution of 15%, not 20%, as it was before, and the period of repayment of the loan will be increased from 10 to 15 years, “- she says.

In addition, the cost of apartments in houses built by the Azerbaijani company was set at 2 lari per 1 US dollar, while the company takes over the possible risks associated with the devaluation of the GEL. The developers say that the situation is complicated by the fact that due to the devaluation of the lari construction costs have also increased. “The price in the US dollars remained the same, but the real price rose, as we use imported building materials,” – they say.