Ilia Tsulaia, the founder of the company Archi declares, that real estate prices will not decrease. As he stated in an interview with TV program Real Estate Prospect, the sector cannot reduce its profit margin due to the increased prime cost.
According to Tsulaia, the financial sector has stopped financing new projects in recent months, which will reduce supply to the market in the future. As of him, the fact might become a prerequisite not for a decrease, but for price increase. He assumes, that the entry of "Emaar" will have a positive effect on prices.
"I can say with a 99% probability that the real estate price will not decrease. Since 2008, the sector has kept an upward trend. Real estate costs have not been decreased even during COVID-19, when there was law number of transactions. Today, no factor could reduce the prices, because the land is very expensive, staff costs and construction itself have become more expensive. As a rule, developers work on a very low-profit margin, so they cannot reduce prices further”, - said Ilia Tsulaia.
Archi appeared on the marketin two thousand six and already unites more than 42 000 residents into one big family. The company's main activities are construction and development projects. Today Archi is a leading development company in Georgia, having implemented 50 projects throughout Georgia.
