"Despite expectations, the price of real estate will not decrease"- DK Capital

access_time2021-04-16 09:30:39

“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 unrealistic requests.


“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 stresses.


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