BAKU, Azerbaijan, Jan. 15
By Tamilla Mammadova – Trend:
Consulting company Cushman & Wakefield Georgia published a report, where the company summarizes 2020 and makes prognoses of what’s next in 2021, Trend reports via the company.
The publication published by Cushman & Wakefield Georgia reads, that the state subsidy program provided a much-needed boost to the real estate market, but the program finished in 2020. However, the program is no longer active in 2021. During the last few weeks of 2020, developers had been openly asking for the government to continue subsidizing interest on mortgages into 2021 as well, however, no budgetary provision has been made for such a decision.
Cushman & Wakefield Georgia considers that the first quarter of 2021 at least will be characterized by downward tendencies.
“We project that transactions will show a month-on-month reduction between January and December but will continue dropping in February and March as well unless another exogenous stimulus is pumped into the sector. No longer supported by the subsidy program, developers will likely start reducing prices, which will pull the city-wide average further down. We do not expect demand to rise on subsegments that experienced a lack of it in 2020, specifically midsegment and premium units, and secondary flats. Overall, the first quarter of 2021 at least will be characterized by the downward tendencies”, the statement reads.
The consulting company declares that the transaction volume will not reach the pre-pandemic levels until the end of 2022.
“Sales prices will drop within the first half of 2021 but are expected to stabilize further down the line. On the supply side, this may result in reduced developer activity and termination or postponement of pipelined projects”, the statement reads.
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