09.Oct .2020 12:27

“There Is a Dialogue on the Continuation of the Program” – Irakli Kilauridze on the Real Estate Subsidy Program

“There Is a Dialogue on the Continuation of the Program” – Irakli Kilauridze on the Real Estate Subsidy Program
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"The subsidy program has had a significant impact not only on the financial sector but also on maintaining confidence in the sector," said the head of Colliers International Georgia, who said the real estate subsidy program contributed to the sector's turnover, which is crucial for its future stability.

As for the criticism of artificially maintaining prices thanks to the program, Irakli Kilauridze thinks that a decrease in prices is still expected in the long run.

"It is well reflected in the numbers - 35% comes from subsidized mortgage lending. The trend in mortgage lending and sales that you see is literally one after the other. There's a large share of the banking sector's financing in the formation of demand in the residential real estate market. Therefore, I think this is an important program. There are dialogues on the continuation of the program. Given that construction has a significant share, I think it will be important to maintain this sector.

This program caught on to the fact that the number of transactions did not fall as fast as it could have. During this period, we think it is more important to maintain the number of transactions. In the long run, prices will decrease, and prices in dollars will fall. It is impossible to keep the market like this, but the most important thing is not to stop the turnover in this sector," - said Kilauridze.