Despite a positive assessment of the current situation, expectations in Georgia’s construction sector have worsened for the next six months, according to the third-quarter BAG Index results.
Beso Ortoidze, General Director of the development company Arsi, says this duality reflects a simple truth of doing business in Georgia: you plan for the worst, even when things are going well.
“In business, it is always better to be ready for a pessimistic scenario than to build everything on optimistic expectations. Especially in a country like ours, where instability, political turbulence, and sudden changes are not rare,” Ortoidze explains.
“At the beginning of this year, we and our partners were already drafting our annual plans with a certain level of pessimism. The political environment at the time demanded it. Things didn’t get as bad as we feared, but that doesn’t mean you change your mindset overnight. Caution is part of the business,” Ortoidze notes.
Ortoidze acknowledges that the political backdrop, from instability to the electoral season, plays a strong role in shaping business expectations.
“Whether it’s construction or any other field, political instability always has an impact. We all see what kind of political situation we have in the country, and naturally this creates hesitation for business,” he says.
Despite the cautious outlook, Ortoidze insists the real estate market itself remains healthy. Demand is resilient, apartments are still attractive for investors, and urbanization continues to push the market forward. Family sizes are shrinking, which also boosts demand for housing.
The company’s data also shows that after the explosive growth in real estate prices in 2022–2023, the market has stabilized. Prices are now rising at a more moderate pace of 7–10% annually, a level Ortoidze considers sustainable.
