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Not Enough Business Centers while Office Space Demand on the Rise Across Georgia

In Georgia Office space demand exceeds Supply. This information was obtained by the Realtors Association Board Member and Managing partner of “Remax Capital”.

According to Mariam Asatiani, at this stage the amount of business centers in Tbilisi is not enough.

“Commercial real estates are becoming more and more attractive. As a result there is demand growth in this field, whereas the supply side is relatively less”, -she said.

Due to the fact that the amount of business centers is not sufficient in Tbilisi, most of the offices are located in residence halls. In addition, it was cheaper to rent offices in the apartment buildings than in business centers. Thus, the prices dropped in business centers, however the quantity is still limited.

Asatiani said that the number of transactions in the market has not changed. Moreover, in a recent period it was remarked 25% decrease on rental price of apartment buildings. The reason of this fact is the completion of new housing buildings.

“New apartment buildings appeared on the market, because quite a lot of constructions are completed in recent period.”

As soon as the leasing price dropped, it had an effect on the selling price. In addition, a lot of customers buy an apartment for the purposes of renting out the property in the future.