Real estate construction in the country has increased by 11.7% y-o-y, - according to the report published by the National Statistics Office of Georgia (Geostat).
As of TBC Capital, the price of an apartment for rent in Tbilisi increased by 79% y-o-y in August, while sales were up by 26.5% and the average selling price per square meter reached USD 999.
According to Ilia Tsulaia, director of construction company Archi, the main factor is the migrant flow increase and their growing demand for the real-estate. As he explains, over 700-800 apartments were sold in Archi projects after the Russia-Ukraine War, of which only 7-8 were sold to the citizens of Russia, Ukraine and Belarus.
"The increase in real estate prices was not caused by the increase in demand. The growth took place due to the sharp price increase on the construction materials, which forced many developers to increase the selling price. It is true that, according to Geostat, the construction of real estate in the country increased by 12%, but if we convert this into USD, the construction of a square meter has become more expensive by 28-30% (USD 100-120), but if we count directly by the areas for sale, the price has increased by approximately 40% per square m, which means an increase in price by approximately USD 150-160. Therefore, if this situation is not reflected in the sale price, the construction cannot continue," explained Ilia Tsulaia.