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Demand for real estate grows in Georgia

Finance Materials 19 September 2019 15:47 (UTC +04:00)

Baku, Azerbaijan, September 19

By Tamilla Mammadova – Trend:

A consistently high demand for real estate was observed in Georgia during 2018, Trend reports referring to the National Bank of Georgia (NBG).

The bank noted that housing sales were primarily driven by increased availability of the real estate. In addition, the demand has increased due to higher wages and liberalization of long-term loans.

According to NBG, in 2018, the number of real estate transactions in Georgia increased by 22 percent compared to 2017, while in Tbilisi and Batumi - by 33 percent and 15 percent, respectively.

Some of the purchases were investments, especially in the resort of Batumi, as the city economy is largely dependent on the tourist flow.

The national bank experts also noted that in the event of a decrease in the demand for housing, it will be difficult for developers and other companies participating in the real estate market to service loans.

This may have a negative impact on the quality of bank assets. It is recommended that banks conduct continuous monitoring of the use of loans issued to construction companies.

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