BAKU, Azerbaijan, August 1
By Tamilla Mammadova – Trend:
Real estate rent index in US dollars was down by 10.7 percent year-on-year in second quarter of 2020 in Georgia, while prices were up up by 4.1 percent year-on-year, Trend reports via Georgian investment company Galt&Tagart.
"Decline of rental rates can be explained by tourism related demand shock. Therefore, rental yields are on the decline, meaning that real estate price decline is also unavoidable," the report said.
According to Galt&Taggart, real estate selling price decline will be softened by the government's 4 percent mortgage interest rate subsidy scheme, which will support sales on a primary market until the end of 2020.
This subsidy program will also front-load demand, as some people expected to buy apartments to get the subsidy. However, this can effect negatively 2021 demand and price dynamics.
"We expect apartment sales to be flat year-on-year in second half of 2020, yielding by 15 percent year-on-year drop for the whole 2020," the company said.
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