Batmite: Besik Pipia / RIA Novosti
For 2018 in Georgia remained consistently high demand for real estate, according to “Sputnik Georgia” with reference to the report of the National Bank of the country.
The document notes that housing sales is due primarily to the increase in availability of square meters. In addition, the demand for real estate increased because of wage growth and liberalization of registration of long-term loans.
According to analysts ‘ estimates, in 2018 the whole of Georgia the number of real estate transactions rose by 22 percent, and in Tbilisi and Batumi — by 33 percent and 15 percent respectively. Part of the purchases were investment — especially in the resort of Batumi, whose economy largely depends on tourism.
The experts of the National Bank also noted that in the case of demand reduction per square meter, developers and other companies-participants of the real estate market will be difficult to service the loans, and this will have a negative impact on the quality of Bank assets. The regulator recommends banks to conduct ongoing monitoring of the use of money granted to construction companies.
In July it was reported that by the end of the first half of 2019, the Russian demand for real estate in Georgia increased by almost five times. In the ranking of foreign countries where citizens most often acquire square meters, Georgia took the 15th place. In 2018, it was on the 23rd position. Made a rating of the analysts said that the conflict with Russia will not entail a sharp decline in the number of requests for housing in Georgia.
Relations between the two countries deteriorated at the end of June. In Tbilisi has sparked mass protests, which became part of the Russian delegation in the session of the Interparliamentary Assembly on Orthodoxy, during which the Russians occupied the chair of speaker of the Georgian Parliament. Russian President Vladimir Putin took a decision to stop direct flights with Georgia from July 8.
Video, photo All from Russia.