Construction companies operating in Georgia declare, that the price of imported steel bars for concrete reinforcement exceeds USD 1,000, while they cost over USD 400-450 before the pandemic.
The Business told BM.GE that the rise in prices for construction materials began amid the pandemic, although they said that price changes were observed last week, which were connected to the ongoing hostilities in Russia-Ukraine.
Beso Tavberidze, the head of the company "Balavari", says that other construction materials have become more expensive along with steel bars, including concrete and iron, due to which the development companies will have to adjust real estate prices.
"The cause of this crisis is the Russia-Ukraine war. In fact, the armature is no longer imported from Russia or Ukraine. There was a shortage in the market and in the last week, price for steel bars for concrete reinforcement was up by USD 200. During the pandemic, the price of iron increased by 100%, the price of concrete increased by 40%, and the cost of repair materials increased by 80%. Price increases began amid the pandemic, although peak price increase has been observed during the war. Increasing the price of fittings and all construction materials will eventually increase the prices of apartments," said Beso Tavberidze.
