Construction and renovation materials in Georgia may become up to 20% more expensive due to reduced imports from Iran, rising global oil prices and growing transportation costs. According to Tornike Guruli, CEO of “Gorgia,” the market will feel the impact within about a month, once current inventory levels are depleted.
Guruli says many developers in Georgia rely heavily on Iranian ceramic tiles because of their affordability and wide use in residential projects, hotels and private homes. However, recent geopolitical developments have significantly disrupted supply from Iran, leading to cancelled orders and increased pressure on the local market. This, he notes, is already contributing to a gradual rise in prices.
Transportation costs have also surged. Guruli explains that global oil price increases are directly pushing freight tariffs higher, with some logistics companies raising prices by up to 50%. Meanwhile, China has begun phasing out state subsidies on certain products, causing global price increases. Fluctuations in currency exchange rates - particularly between the yuan and the U.S. dollar - are further impacting the cost of imported goods.
Considering all these factors, “Gorgia” expects construction and renovation material prices in Georgia to rise by around 20%, though the final figure may be slightly higher or lower. Guruli says more noticeable price changes will emerge in the coming weeks as existing stocks run out and new shipments arrive at higher costs.
