Sales can decline by 15% in the second half of 2020

Sales can decline by 15% in the second half of 2020

access_time2020-08-12 15:00:48

 The Georgian real estate market has seen a price drop in the recent period.

The sharpest decline was observed in  rental prices. The supply on the market significantly exceeds demand due to the collapse of the tourist season caused by the closure of borders.


Galt & Taggart research shows that developers and private investors are gradually adapting to the new, post-quarantine reality, especially in apartment rentals.


According to the company's analyst Kakha Samkurashvili, if the tourism sector doesn’t recover, the rental market will be in an even worse situation than it is now. The real estate sector is doing better, but still faces some difficulties.


“In May-June, the price of new apartments decreased by 9% that is quite common and it is too early to talk about it  as  a stable trend. in the second quarter of 2020 a 11% decline in rental prices was observed  that is quite natural amid  the collapse of the tourism sector, ”he explains.


Samkurashvili  expects that the government's program of subsidizing mortgage loans will allow to reach last year's level of residential property sales in the second half of 2020. Given the collapse during the quarantine, sales can decline by  15%.


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