“Due to the pandemic, there is
a very high level of uncertainty in society and people don’t know the optimal price to sell apartments for,” David
Kenchadze, CEO of DK Capital, says.
According to Kenchadze, there
are various expectations in the market - many are sure that prices will definitely fall
and an apartment can be bought at a very low price, and turn to developers with
“Proceeding from the crisis,
everyone is looking for real estate at the lowest price. However, apartment
owners as well as developers think quite differently - building materials have
risen in price by about 30%, if the fittings price before the pandemic cost $ 600, now it costs $
800. All these excess costs are included in the cost of real estate, and prices
will not decrease,” he notes.
In Kenchadze’s words, despite
expectations, apartments prices will not decrease in Georgia.
“The situation in the secondary housing market is similar, many want to buy cheap apartments for
investment purposes, so they are looking for old apartments, but apartment
owners prefer not to sell at all, rather than sell at a low price,” he explains.
Kenchadze adds if the economic situation
in the country does not improve within a year, there will be such a crisis that
no one will remember about real estate at all.
“Today the country is
demotivated, since no one has any positive expectations for the next few months.
In this situation, the country needs to restore faith in tomorrow that is the
government’s task and responsibility. It must present a program of action to
boost businesses, ”CEO at DK Capital