Arsi Director: 8 Out of 10 Apartments Were Sold as Investments This Year

Beso Ortoidze, General Director of "Arsi," claims that, up until 2022, the majority of apartments in their developments were purchased for residence, but that situation has completely changed this year. He claims that 8 out of 10 apartments are purchased as investments.

Speaking about the summary of the year, Orthoidze also noted that the market has grown by about 30-40%, as for the price increase in 2023, the company thinks that the increase will be within the natural range of 5-7%.

"The sector has already exceeded the 2019 data. The increase was in both sales and price. If before the pandemic, 8 out of 10 apartments were sold for the purpose of people needing to live or to improve conditions, today 8 out of 10 are bought for profit, i.e. for investment. Today, the most sought-after capital is real estate, and everyone is trying to buy it.

From 2023, I expect prices to increase less, but to increase more steadily and naturally. What happened this year was not natural, there were several reasons, one is the pandemic, in addition to this, we had rather high inflation in the country, which played a role in the price increase, we had an increase in the price of construction materials, and the number of migrants added to this, which affected the price. If we don't have any news regarding these factors if inflation stabilizes, the rent price stabilizes, I think the price increase will be within 5-7%," Ortoidze said.