Average Rent Price Is Significantly Up - The NBG
The National Bank of Georgia warns commercial banks, that they should be more careful in those credits, which are focused on real estate rental because currently the leading cause of increased prices can be considered as a temporary factor, - according to the decision published by the Financial Stability Committee on Wednesday.
"The rent price in the real estate market remains at an increased level. In recent years, a trend of growth in the real estate market is observed, which is due to the increased demand on the one hand, while on the other - expensive construction.
Demand for real estate is grown as a result of increased migration to the country after the start of hostilities by Russia in Ukraine. The increase in real estate sales prices is largely proportional to the inflation of construction costs and industrial production.
And in the case of rent, the increase is larger and exceeds its long-term trend by about 30%. Taking into account the above, the National Bank recommends financial institutions to take into account the above-mentioned dynamics when assessing the stability of income from rent when lending", - the document reads.