Development companies declare that despite the decline in demand, there is no resource to reduce prices in the real estate market at this stage.
As the General Director of company "Arsi" told BMG, two new regulations planned for this year will further increase the cost of construction.
According to Beso Ortoidze, these regulations include the removal of the preferential taxation regime for construction workers, as well as the imposition of a tax on imported reinforcement. According to him, depending on demand, real estate prices this year will either remain unchanged or increase by an additional 5%.
"At this stage, there is no resource to reduce prices. Moreover, two regulations, enacted at the beginning of the year, will increase the construction cost, which will then be reflected in the selling price. A tax of 420 GEL was imposed on imported reinforcement, which has already increased the price of both imported and local reinforcement by 150-200 USD.
Last year, real estate prices increased by about 5-7%, and this year the same increase is expected. However, the reduced demand may still leave the price at the level we had before. However, the prime cost of construction will be definitely increased,” said Beso Ortoidze.
