Georgian real estate business sees signs of recovery

Georgian real estate business sees signs of recovery

access_time2020-08-03 09:00:53

In July 30% of issued mortgage loans are issued within the state program of mortgage subsidization, the report of the brokerage company TBC-Capital on the situation in the Georgian real estate market says.

"Mortgage lending in the last week of July decreased by 6% in comparison with the same period of last year but increased by 18% in comparison with the previous period," the report says.

In the words of  the TBC chief economist Otar Nadaraya, the crisis hit people with low incomes, who can’t take a mortgage to buy apartments. This also contributes to the growth of mortgage lending.

“Expectations for mortgage loans are positive. Loan subsidization  by the state will increase interest in mortgages. In addition, banks also contributed to the growth of mortgage lending. The situation on the labor market is still negative, but we expect the situation will improve, ”he says.

According to Nadaraya, as soon as restrictions soften and the economy recovers, demand will return to the pre-crisis levels.

“Due to the difficult economic situation, many citizens are forced to temporarily postpone the purchase of an apartment until better times. After the economic situation normalizes, they will buy real estate, ”-  Otar Nadaraya believes.

Nadaraya adds that the real estate business will surely recover on its own, but state support will boost the process.


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