As reported, on May 28 the Georgian government announced the launch of the real estate business support program to boost the sales by subsidizing interest rates on mortgage loans.
“First of all, any crisis hits the construction industry. In Georgia, tourism and the real estate business have suffered the most, but after tourism it is the real estate development business. This is the sector that is the largest employer in the country starting from laborers to architects. Apart from that, construction is the first link in the whole economic chain that provides work for a number of related industries, ”he says.
“By supporting the construction industry the state supports other sectors of the economy, which will go bankrupt without developers. This program will help 20,000 citizens who bought apartments when the construction was launched and paid part of the cost of real estate, and now, if the development business collapses, they may be left without money and apartments. We have already suffered this after the global crisis of 2008-2009, ”Irakli Rostomashvili explains.
He also drew attention to the widespread stereotype in society that developers work on very high profit margin.
In his opinion, the state’s initiative to acquire apartments for 1800 IDP families is also very important.
“5-6 years ago we opposed the initiative to build houses for refugees in separate settlements as we believe they must live in ordinary residential buildings. In addition, the purchase of apartments for refugees in ordinary new buildings will boost the development of construction projects on the outskirts, ” he points out.