Real Estate Prices Expected to Rise in Georgia Due to New Regulations and Standards
Temur Bitsadze, head of business development of "Alliance Group," discussed the factors contributing to the potential increase in the cost of real estate in Georgia during a meeting of real estate leaders.
He noted that while the value of real estate in the country is currently stable, the introduction of Eurocodes in the construction sector and new regulations related to the construction-development sector may lead to an increase in the cost of real estate by 10% in the short term.
Furthermore, he emphasized that his company, "Alliance Group," adheres to international construction standards during the implementation of projects, which increases the company's costs but insures all existing risks. He also mentioned that the value of real estate has already increased in many directions partly due to the increase in the cost of logistics for a certain period of time, which has now slowly stabilized, and the balance is being corrected.
In the long term, the cost of real estate is expected to increase by another 15-20%, and he believes that this increase is acceptable because the value of real estate in Georgia is currently at a level that will more or less bear this supplement. Therefore, according to him, now is the best time to invest in the Georgian real estate market.
It is worth noting that the obligation to comply with European norms in the design and construction of buildings is part of the association agreement with the European Union, which Georgia signed in 2014. The gradual reorganization of the construction sector to meet this standard is set to take place from 2024. Eurocodes, a European standard representing the rules for the construction calculation and design of buildings for the member states of the European Union, is one of the new regulations to be implemented.