Galt & Taggart: Price drop observed in Georgian real estate market
BAKU, Azerbaijan, August 12
By Tamilla Mammadova – Trend:
The Georgian real estate market has seen a price drop in the recent period, Trend reports with reference to Georgian investment company Galt & Taggart.
As reported, the sharpest decline was observed in rental prices. The supply on the market significantly exceeds demand due to the collapse of the tourist season caused by the closure of borders.
Galt & Taggart research shows that developers and private investors are gradually adapting to the new, post-quarantine reality, especially in apartment rentals.
According to the company, if the tourism sector doesn’t recover, the rental market will be in an even worse situation than it is now. The real estate sector is doing better, but still faces some difficulties.
“In May-June, the price of new apartments decreased by 9 percent that is quite common and it is too early to talk about it as a stable trend. During the second quarter of 2020, an 11-percent decline in rental prices was observed that is quite natural amid the collapse of the tourism sector,” the report said.
The company expects that the government's program of subsidizing mortgage loans will allow reaching last year's level of residential property sales in the second half of 2020. However, the sales can decline by 15 percent.