Real Estate
Posted: 1 year ago

Government Announces Auction of warranty of 100 million for Insurance of Unfinished Construction Projects

The government of Georgia has announced an auction of warranty of gel 100 million with the aim to insure unfinished construction projects, prime minister Giorgi Gakharia noted.

We remind you that the issue is that part of the bailout package calls for the completion of unfinished construction projects.
As reported, under the bailout plan, the Government will provide a guarantee for more than 30% of spaces in development projects, where the price of 1m2 is below GEL 1,700. As part of the program, the guaranteed real estate will be transmitted to refugees in ownership.
This initiative in the bailout plan is as follows:
1. the Government will provide the procurement guarantee for at least 30% of the residential space.
2. Developers will receive guarantees as part of the auction that the Government will hold for the price of 1m2 and the price must exceed GEL 1,700.
3. The procurement guarantee is valid for 3 years
4. The guarantee turns invalid if the received party cannot confirm the financial closing under the government-determined regulations
Notably, the initial variant of the project was to be financed by GEL 200 million, but today the Prime Minister noted that the auction of GEL 100 million would be announced.
“We started mortgage loans subsidization program, as our response to the economic crisis to further promote the development sector and improve living conditions of Georgia families, we started subsidizing mortgage loans, but this is not sufficient and today we will put out a warranty for auction for completion of all construction projects”, Giorgi Gakharia noted.