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Whether Demand for Suburban Life in Tbilisi Grows

A certain part of our citizens prefers to move to suburban areas for living because of traffic jams, polluted air and ecological problems in the city center.

According to real estate agencies, over the past 4-5 years, number of citizens seeking houses and land plots in Tbilisi outskirts has considerably increased. Tskhvarichamia, Tskneti, Kiketi, Tsavkisi, Saguramo and other settlements are among popular locations.

According to World Health Organization indicators, every 9 persons out of  10 ones in the world live in the environment with a high level of air pollution. Air pollution is a problem in Georgia too, especially in the capital city. As a result, number of diseases catastrophically grows every year.

Therefore, ecologists assert that it is better to live in suburban areas than in Tbilisi.

Because of a growing number of transport and glass structures, the city lacks for ecologically clean environment. Experts explain that suburban life tendency has been long established in various European countries and it will be established in Georgia too.

According to statements by environmentalists, there are several locations near Tbilisi in terms of ecologically clean residencies, including Kiketi, Tskhvarichamia, Natakhtari, Tserovani, Tsavkisi, Tskneti and so on.

Rusudan Simonidze, co-chairperson of Georgian Greens Movement, says that living in the capital city has become unbearable in terms of ecology and it is better to live in Tbilisi surroundings.

According to Nikoloz Kevkhishvili, head of Valuation and Research department at Colliers International Georgia,  Land sales transactions for single family housing developments1 in Tbilisi occurred mainly in the following districts: Village Dighomi, Dighomi 7, 8, 9, Kodjori, Tabakhmela, Tsavkisi, and Tskneti. The mentioned districts are spread over the three municipalities of Georgia – Tbilisi, Mtskheta and Gardabani. The total number of registered sales transactions in these districts during 2016 amounted to 924, a figure 9% higher than the same indicator for 2015.

Registered sales transactions increased by 6-20% in all price segments. Number of registered sales units increased in Village Dighomi, Tabakhmela and Tsavkisi. The slight decrease in transactions was observed in Tskneti and Kojori.

The highest selling prices were achieved in Dighomi 7, 8, 9 and Tskneti, accounting for USD 84 and USD 56, respectively. Average selling price decreased in Dighomi 7, 8, 9 and Tskneti. The figure increased in Village Dighomi and Kojori.

In the first quarter of 2017 registered sales transactions of the lands for single family house development did not change significantly in Mtskheta, when compared to the same figure of 2016. At the same time Tbilisi and Gardabani municipalities showed around 20% increase.

Tengiz Gadelia, head of Georgian Association of Realtors, says that  Saguramo, Kiketi, Tskneti directions are most in-demand locations because of several factors: 1) vicinity to the capital city; 2) unlike previous years, infrastructure has been developed and 3) ecologically clean environment.

Unlike previous years, the number of real estate transactions has increased in Tbilisi suburbs. Old residents of Tbilisi are bored with noise, a great number of vehicles and this category shows much interest in suburban real estate, Gadelia said. In most cases, people buy property in Tbilisi outskirts for building cottages, he added.

According to his forecast, the demand will further grow if development projects continue overloading Tbilisi central zones and the capital city is not freed from automobiles.

Professor Rati Abuladze, doctor of economics, explains that vector of premium class’ demand and change in structure have made influence on shaping Tbilisi outskirts. All these factors have enlivened the capital city surroundings and intensified apartments market.

«Suburban  zone belongs to a resort zone and their importance are known historically. Consequently, current tendency comprises a revival of the process and certain demographic inversion», Rati Abuladze noted.

Development of Tbilisi surroundings are inspired by such factors as:

  • High air pollution level (causing serious diseases for the center residents), level of noise;
  • shaping the city, deficit of space and high density;
  • lack of plants and green zones;
  • Urban details: social-space, economic and institutional aspects of the city;
  • social segregation process;
  • culture impact and tendencies;

According to Abuladze, the new narrative drives «suburbanization of high-income segment» and modification of suburban settlements. The fact is that Tbilisi surroundings create an organic wholeness that is represented by:

  • Healthy climate of Suburban resort zones (Tskneti, Kojori, Kiketi, Betania);
  • Individualization, isolation and comfortable living conditions;
  • Social-space structure, low density and control over huge spaces (that reduces living difficulties).
  • Feeling of beauty of nature and landscape, revival of settlements and perception of configuration of premium environment;

According to Abuladze, in heterogeneous environment Tbilisi Government is obliged to:

  • prevent deepening inequality of dicotomy of Tbilisi and its surroundings and shaping segregated city.
  • Prevent social-economic isolation and division by classes;
  • Concentration of premium segment in Tbilisi surroundings is expected to shape business and viable environment.

Irakli Rostomashvili, head of Association of Georgian Developers, explains that it is wrong assertion as if Tbilisi surroundings are developed. According to Rostomashvili, the development process is of unimportant scales. «Building process was intense in previous period, because similar zones did not exist in Tbilisi surroundings earlier. Tskneti, Mukhatskaro and Tsavskisi were undeveloped zones earlier and these locations were developed several years ago. No new settlement has been arranged. Development process is not large-scale. These zones were shaped earlier», Rostomashvili noted.

Real estate agencies also prove that the demand for real estate has risen in Tbilisi surroundings. Tbilisi Central zones are overloaded in terms of development projects and automobiles and Tbilisi residents prefer to move to cozier  environment, they assert.

Several months ago Ilia Inashvili, director for Bonus  real state agency, explained that the demand for real estate has risen in Tbilisi suburbs.

«Land plots near Tbilisi were in much demand  in new districts. Lack of communications was only problem, but after improvement of these aspects, the demand will grow further.

As to real estate sales, over the past 4-5 years real estate sales grow on annual basis in Tbilisi outskirts”, Ilia Inashvili noted.