Price Increase On The Real Estate Is Inevitable - Company
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Prices on commercial and residential real estate are constantly increasing. According to Geostat, the residential real estate price index increased by 0.7% in 2Q22 compared to 1Q and the annual growth of the index amounted to 4.5%.
According to Teo Gegiadze, the commercial director of the development company "Blox", the increase in real estate prices is due to several reasons: the most important factor is the increase in the prices of basic materials - the cost of reinforcement has increased by 20%, and the cost of concrete - by 15%. In addition, all other construction and repair materials have become significantly more expensive, which was caused by the complication of logistics in the market; The remuneration of the workforce has also increased to 20%. In general, the cost of construction has increased by approximately 20%.
"Taking into account all the circumstances, the price increase of both under-construction and completed apartments is inevitable. The pandemic had no less impact on the real estate market, although recent events have had a particular impact on real estate values. Until this period, we tried to maintain the price in the current projects, however, from the next month, the cost in our projects will increase by approximately 20%", - explained the commercial director of Blox.
"Currently, we have 7 completed and ongoing complexes in Tbilisi, and 2 in the regions. We are planning various large-scale projects, about which the public will soon learn. Due to the fact that real estate is gaining investment load more and more, we are trying to make our projects more diverse. In addition, it is important for us that the customer has the opportunity to choose where he wants to buy an apartment, in completed or under construction complexes," said the commercial director of Blox.