Irina Kvakhadze, head of Research at TBC Capital, talked about the trend of rising real estate prices and the effect of migrants in the TV-program "Business Morning". According to her, 80% of price increase in the real estate sector is due to migrants.
"One of the main topics for business and the economy as a whole in 2022 is migrants and their impact. Real estate is the sector where we have seen the effects of migration the most. The rental price has increased significantly. The growth trend started in May 2022 and continues until now. Along with the rent, the sale price soon began to rise. We estimate that 80% of the growth is due to migration.
It is not news that the main activity in real estate comes from Tbilisi, followed by Batumi and then other cities. Migrants have an impact on our neighborhood as well. It should be noted that in those areas where the cost was significantly lower (eg Varketili, Vazisubani), the sales price growth rate is much higher. The demand is so high that it has been distributed to the suburbs as well," said Irina Kvakhadze.
According to her, if migrants leave the country, this will have a negative impact on real estate. Adjustment of rental and sales prices in "TBC Capital" is expected in 2024.
