Foreign investor activity in Georgia’s real estate sector continues to rise, with almost 40% of sales at Biograph Living now driven by international buyers.
The company’s CEO, Vasil Pkhakadze, shared this insight at the ongoing real estate forum in Tbilisi, organized by "Invest in Georgia" for the third time.
The event is hosting investors from the United Arab Emirates, brokerage representatives, real estate experts, and major Georgian developers, including Biograph Living, Metropol, VR Holdings, Redco, and Astoria.
“We have a very good partnership with Invest in Georgia. This is the third time we are participating in the real estate forum organized by them. We are very pleased that the demand and interest in Georgia is growing every day, which is reflected in the number of investors participating in this forum. As for the Biograph Living, I can say that the share of foreign investors in our sales is growing every year and is almost 40%. This means that investors have expectations and hopes that they will receive an asset in the real estate market of our country and trust the product that Biograph offers.
The market and demand are very stable, which is good and we expect that this year there will be an average growth of 5% in the real estate market. As for the demand from foreigners, as I have already mentioned, their share in general sales has increased significantly. This explains one very interesting trend: more and more premium projects are coming to the market, because the demand from foreigners is precisely for premium products. Accordingly, developers are also trying to adapt to these requirements. They use higher-quality facade materials, develop multifunctional projects and spend more time in this direction," he said.
Premium construction standards also translate into higher project costs. Pkhakadze explained that Biograph Living works with leading European brands - such as Germany’s Kerabeka, Switzerland’s Schindler, and Germany’s Schüco, which naturally raises the cost of development and ultimately the selling price.
According to the head of "Biographer Living", premium-class construction involves cooperation with leading European brands, such as German Kerabeka, Swiss Schindler and German Schüco.
As for prices, Pkhakadze explains that the use of high-quality materials increases the cost of projects, which ultimately affects the selling price.
"To give an example of our projects, as you know, we cooperate with leading European companies in the field of construction materials. We use 'Kerabeka' terracotta, which is one of the leading German companies in the world. Schindler elevators, which are a leading Swiss company. We also cooperate with Schüco. This is a representative company of a German factory that produces the highest quality aluminum systems. It can be said that it is precisely this approach that causes great interest from investors in investing in the Georgian real estate market.
As I have already mentioned, we are now in a more stable phase, which implies an average annual growth of 5%. As for prices in the market in general, based on the demand and supply that I talked about, the creation of more premium products, of course, means that the cost price for developers increases. This, ultimately, is also reflected in the selling price. On the one hand, it may appear that the price has increased, but on the other hand, "it means that today a higher quality product is being created in Tbilisi. This means that the investment made by a person will ultimately be more appreciated and will bring him more benefits," said Vasil Pkhakadze, Executive Director of Biograph Living.
