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Developers Switch Strategy on Sales due to the Lari’s Devaluation

After “Archi Group”, the  construction company M2 is the second development company in the Georgian market started selling  apartments in GEL due to  the national currency’s depreciation.

Those who wish to purchase an apartment in the company’s residential complex  can take  the mortgage loans in the lari. The company negotiated with the banks, who will issue mortgage loans in GEL to the clients interested in purchasing new homes  built by the company.

What are other construction companies going to do and how they respond to the current crisis?

In a few days the construction company “Dirsi” will  submit a new offer to the clients.  At the end of the week the Board of Directors meeting focused on  the issue and alternative versions will be held in Azerbaijan, the  company says.

“Dirsi” does not rule out they start  selling the  apartments in the national currency, however, first market should be studied. There is another way, which provides a new mortgage product for the customers. The company says that the new product  will be long-term with the minimal participation.

“Axis”  is not going to change  its strategy.  According to the company’s CEO George Kapanadze ,  theoretically they are already selling  flats in GEL , because the clients pay in dollar or equivalent in lari.

George Kapanadze expects  that the company, which will sell the homes in lari, will have to  change the price daily at the exchange  rate what “Axis” is already doing.