The Government of Georgia signed an agreement on the purchase of apartments worth 52.7 million GEL from two developers – Optima and Eurolux, members of company m2. Including, purchase agreement of 38.5 million GEL was signed with LLC Optima, while the government will acquire apartments of 14.2 million GEL from LLC Eurolux.
The state signed the relevant agreement in late 2020, within the framework of the construction sector support program. The program was aimed at supporting the real estate sector in addition to subsidizing mortgages.
According to the government, the program provides some kind of guarantee to the construction sector so that the projects they built would not remain unsold. As of the government decree, the companies can submit any buildings under construction to the competition, from which the state would sign a procurement contract for no more than 30% of the residential space.
The goal of the government is to purchase apartments worth 100 million GEL under the state program. However, it is clear from the written explanation of the State Property Agency, contracts were signed on apartments worth 52.7 million GEL instead of 100 million GEL.
The government will distribute apartments purchased under the program to people with different needs. However, who will be the beneficiaries of these programs is unknown at this time.
Companies were selected through a competition to sign contracts. According to the terms of the competition, the bids submitted by the participating companies in the case of Tbilisi must not exceed 1700 GEL per square meter; while in Batumi - 1530 GEL per square m.
According to the competition, the Georgian government will purchase real estate under construction in Tbilisi and Batumi.
