«Due to the personnel shortages , the value of real estate rises each day, which in turn drives up sale prices,» Beso Ortoidze, CEO of the development company «Arsi», states. In his words, the staffing shortage results in higher employee salaries, which significantly affects housing sale prices.
Note: a study by the Business Association Index highlights that the construction sector has the greatest expectations for sales price growth. According to the BAG index, 21% of the surveyed companies have already raised their sales prices in the third quarter, while 32% expect sales price hikes in the fourth quarter of 2025.
Everything is very individual, and of course there are different opinions in the sector, but the fact that today the situation is politically stable for some and unstable for others is also a problem. We see people detained every day that negatively impacts investors and the economic situation in the coutry. Stability is important, so expectations cannot be positive in such environment.
We have a growing trend for building materials, rising wages that drives expectations the real estate prices to go up. It’s not about sudden growth, but natural growth. If there were no global or local disasters and something unplanned did not happen, natural growth would continue.
Let’s be honest and say that price growth occurred in 2023, when it was 30-35% per year, and for two years we have seen about 60%. The growth we are talking about now is not sharp. This year, real estate prices rose by 6-7%. For the second year in a row, prices have stabilized.
To be honest, price hikes were recorded in 2023, when it was 30-35% per year, and for two years we had about 60% growth. What kind of growth we are talking about, it is not dramatic. This year the value of real estate rose by 6-7%. This is the second year that prices have stabilized.
If we look back to 2019, before the global problems began, 2019 was the last year with fewer fluctuations with an annual growth of 10%. For countries like ours, the price of real estate is quite acceptable and normal, we do not even feel this growth. But in 2022-2023, prices were growing very fast, and a new benchmark was set. If we knew before that we can buy one square meter for 800-900 dollars, now it costs on average $1 500.
At this stage, the market is set to accept this price. Some expected it to be temporary, that it would decrease, that it was migrant effect and so on, but even then I said the price would remain. Now it is important that prices do not rise sharply in the next 2-3 years, and this is the second year when it stabilized at 10% annually in a stable environment a few years ago», says Beso Ortoidze.
