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Georgia implements program aimed at supporting real estate sector

Business Materials 12 April 2021 14:13 (UTC +04:00)
Georgia implements program aimed at supporting real estate sector

BAKU, Azerbaijan, April 12

By Tamilla Mammadova – Trend:

An agreement within the framework of the construction sector support program was signed in Georgia, Trend reports via local media outlets.

As reported, the Government of Georgia signed an agreement on the purchase of apartments worth 52.7 million lari ($15.4 million) from two developers – Optima and Eurolux. The program was aimed at supporting the real estate sector in addition to subsidizing mortgages.

A purchase agreement worth 38.5 million lari ($11.2 million) was signed with LLC Optima, while the government will acquire apartments of 14.2 million lari ($4.1 million) from LLC Eurolux.

The program provides some kind of guarantee to the construction companies that the projects they implement would not remain on paper. As for the government decree, the companies can submit any buildings under construction to the competition, from which the state would sign a procurement contract for no more than 30 percent of the residential space.

The goal of the government is to purchase apartments worth 100 million lari ($29.2 million) under the state program. The government will distribute apartments purchased under the program to people with different needs. However, who will be the beneficiaries of these programs is unknown at this time.

Companies were selected through a competition to sign contracts. According to the terms of the competition, the bids submitted by the participating companies in the case of Tbilisi must not exceed 1,700 lari ($497.76) per square meter; while in Batumi - 1,530 lari ($447.99) per square m.

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