Developers hail the program supporting the real estate industry

Developers hail the program supporting the real estate industry

access_time2020-06-01 16:00:16

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.

President of the Developers Association believes this decision is very important not only for the construction sector, but also for the Georgian economy.

“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.

President  of the Association believes that the state takes on the costs associated with the functioning of the economy that is very important as from time to time the state has to take such measures not only in a crisis. For example, the government spends a lot of money on attracting foreign tourists, and now during a pandemic developers need such support.


He also drew attention to the widespread stereotype in society that developers work on very high profit margin.

“This opinion is not true. If we carefully study the costs of developers, such as the purchase of building materials, land taxes, building permits, communications, transportation research, etc., it will be evident  that the margin is actually minimal, ” the head of the Association of Developers notes.

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.


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