Government Undertakes Program for Buying off Apartments, Budget Total GEL 200 million

The Government has submitted a development sector support state program as part of the working meeting with the development sector representatives at the Ministry of Economy and Sustainable Development.

Deputy Economy Minister Irakli Nadareishvili and the National State Property Agency director stressed the importance of the program and underlined that the program is to minimize the negative impact of the COVID-19 pandemic on the development sector and to stabilize the real estate market.

The program calls for concluding agreements between the Authorities and developers on the option of sales of residential spaces, under the state program regulations and conditions. Namely, contractual developers will be selected through competition and agreements will be signed under the program-determined regulations.

“Today’s meeting with the industry has been dedicated to one of the important components - a buy-off option. This will add more steadiness and stability to the sector, particularly in the post-crisis period, when it is of crucial importance to ensure sectoral support for various economic fields”, Irakli Nadareishvili noted.
“We have launched mortgage loans stimulation, as a response to economic crisis in order to enhance the development sector and support each Georgian family that had certain savings for improving the living conditions”, the Deputy Minister noted.

“Unfinished construction projects of 2008-2009 years still distort Tbilisi and many other cities in Georgia and create huge social problems to our citizens who have made primary payments to these development projects”, Irakli Nadareishvili noted.

The Government carries out a consecutive bailout plan, agreed with the business sector, he said.

“Support of developers and the development sector is one of the important components of this plan. Today, over 1,700 citizens have already used the mortgage loan subsidization project”, the Deputy Economy Minister noted.
The program will be carried out by LEPL National State Property Agency that will buy off residential apartments. The competition will be held in two stages. The program’s budget is GEL 200 million.