The Georgian Competition and Consumer Agency (GCCA) has granted approval for a concentration in the real estate leasing and rental market, executed through the acquisition of 100% of the shares in LLC „Buka“ by natural person Gia Gorgoshadze.
Following a thorough review of the information submitted and additional data obtained, the GCCA established that, in 2023, approximately 4,240 entities were engaged in economic activity within the real estate leasing and rental sector across Georgia. The market's total volume amounted to GEL 2,852,674,924. The Herfindahl-Hirschman Index (HHI) for this market was calculated at 48.70 units, classifying it as a low-concentration market. The sector is characterized by a broad spectrum of operators with relatively balanced market shares. The target undertaking’s market share was determined to be minor. Furthermore, the economic agents under the control of Mr. Gorgoshadze had not previously conducted business in the relevant market. As such, the concentration will not result in a change in the market's HHI value.
Based on the results of the market analysis, the structure of the relevant market, and the market shares of the parties involved, the Agency concluded that the concentration will not have a substantial impact on the competitive environment.
Concentration is subject to notification to the Agency if the aggregate (total) joint income of its participants on the territory of Georgia, exceeds 20 million GEL and the joint income of at least two persons participating in the concentration exceeds 5 million GEL for the previous financial year. In case of bypassing the Competition Agency subject to the mandatory notification, before the Agency reviews the notification or despite the negative conclusion, the person with the obligation to submit the notification shall be fined.
In 2025, the Georgian Competition and Consumer Agency has approved 7 concentrations, while 2 cases are currently under review.
