The real estate market in Batumi and Tbilisi is rapidly growing, but this trend may create significant long-term challenges, according to Nikoloz Urushadze, Director of G.Miller International Georgia. He shared his views on BMGTV’s Business Morning program.
“Today, our real estate market is developing at a very rapid pace, especially in Batumi and Tbilisi. The Georgian economy is still largely concentrated in these two cities. When such growth is not supported by proper planning, it may satisfy demand in the short term, but in the long term it creates big problems,” Urushadze said.
He warned that unplanned urban expansion could eventually lead to social tensions, migration, and environmental pressures, stressing that “rapid development has its advantages, but its disadvantages only become visible over time.”
Urushadze also pointed out that the government has an important role in ensuring sustainable development of the sector.
“The state can implement a number of reforms to improve the real estate market. For example, better provision of information through registry databases. In addition, consulting services should be exempted from VAT, and the education sector should not be taxed either,” he noted.
