2022 has had a strong impact on the Georgian real estate market. High rental demand has forced construction companies to change projects and development strategies from the wheels. Daria Borodina, the founder of the company selling foreign real estate BD-GROUP, told Realty Times about this.
– The year 2022 for the real estate market of Georgia was filled with a rush demand for rent – there have never been such prices and demand. As a result, people who had money began to buy real estate to rent it out. Thus, long-term rent in Georgia has almost doubled in price, while daily rent has not changed much. In this regard, investors are now paying more attention to objects for long-term lease, since in the short-term lease market the money is the same, but there are more problems. Prices for the purchase of real estate for the whole year increased by 20%. The result was that the Georgian real estate market has become more visible and interesting for investors, – said Borodina.
According to her, a significant increase in long-term rental rates has led to the fact that for local residents of Georgia, housing rental has become unaffordable. Many began to move to their parents, which is typical for locals. Thus, they freed up space for renting it out and getting a good income. At the moment, there are no salaries in Georgia that would allow you to receive the same income as from renting. Over the year, the demand for finished projects has increased two to three times. More and more buyers want a residential format, and the demand for apartments is declining.
Due to the high demand for long-term rentals, consumer demand has also changed. If earlier the main demand of buyers was directed to studios or one-room apartments for daily rent for the summer, now the majority of requests come to gasified objects, with one or more separate bedrooms for year-round use. Moreover, developers have already begun to adapt to these requirements of buyers.
Also, these transformations began to occur not only in the planning plane, but also as part of providing the facility with all the necessary infrastructure. For example, last year the first house with boiler heating was built in Batumi. This story will gain momentum and projects will be more autonomous. Now customers do not want to buy apartments where heating comes from air conditioning.
In 2023, the market will actively change. Developers will abandon skyscrapers of 50 residential floors in favor of mid-rise projects with infrastructure, playgrounds, co-working spaces and other infrastructure. Developers will be more active in adding zest that distinguishes their projects. For example, people are willing to pay for swimming pools, spa centers, fitness centers, co-working spaces, cinema halls within the framework of the project. In addition, the projects will have fewer studios and more properties with separate bedrooms.
Another change in the primary market of Batumi and Tbilisi will be that, due to the limited supply of land, developers will be more active in implementing projects outside the cities.
Prices for new buildings in 2023 will continue to rise. Much will depend on political decisions. Last year, developers raised prices following February and September. The Georgian real estate market will continue to move from housing for seasonal holidays towards year-round housing.
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