Tornike Guruli, the executive director of "Gorgia," predicts significant price hikes for construction materials and real estate in Georgia due to ongoing global political and economic factors. Guruli stated that construction material prices are likely to rise by up to 30%, while real estate prices could increase by as much as 20%.
According to Guruli, the price surge is driven by several global crises, including the ongoing conflict in Iran, which has impacted oil and polyethylene prices, causing the cost of plastic-based materials to soar. Additionally, supply chain disruptions in countries like Iran, India, China, and Turkey have led to production shutdowns, further exacerbating material shortages. Furthermore, rising fuel costs and the removal of state subsidies on certain products in countries like China are pushing prices higher.
Guruli noted that international price differences have reached dramatic levels, with some materials seeing a price difference of up to 40%. He explained that while transportation costs have not yet stabilized, they are expected to rise further, leading to inevitable price adjustments for construction and renovation materials in Georgia.
While the price changes are already underway, Guruli emphasized that large companies have so far managed to keep prices stable. However, he confirmed that after the Easter period, prices will likely rise by 5-30% depending on the material, raw materials, and transportation costs. Additionally, he predicts that real estate prices will also follow suit, with an expected increase of around 20% within the next 3 to 6 months.
