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Lika Kardava

Investors Sentiment Towards Georgia’s Property Market Remains Promising and Buyer Appetite Trends are Growing

Lika Kardava – Founder and the Managing Partner of the #1 Georgian Property Guide Portal www.propertygeorgia.ge.

Property Georgian is partner of EEA Real Estate Forum & Project Awards 2017 — the Forum and the Award for projects in the real estate to countries of Eastern Europe which is going to be held on November 23 in Kyiv, Ukraine.

Lika, tell us about Property Georgia, when did you came up with creating real estate portal and what was the initial aim of it?

www.propertygeorgia.ge  –  brand-new digital platform’s launch was announced on June, 2016. Demand for property in Georgia  has reached all-time highs over the last years and as Real estate professional I  have decided to bring together all leading players of Georgian real estate market and create a unique platform for new developments to showcase what makes their properties particularly attractive to local / international buyers or foreign investors.

I’ve looked at what was happening in the Georgian property market for years, and what the market needed most – where was a gap, then thought about how I could leverage capabilities to build a valuable solution which benefits from one side property developers, real estate brokers and on other hand individual buyers and corporate investors interested with Georgian real estate sector. 

What is Property Georgia all about and how did you established yourself on the market?

Thanks to our leading real estate partners who has supported the idea from the very beginning like Colliers Georgia , Redix, Lisi Development, King David, Alliance Group, SEU Development and many others, we have positioned on the market as a leading #1 property guide portal embracing most trendy insights and showcasing reliable real estate market players/their projects with one window principle.

We help partner organizations to grow and promote their business, to showcase their projects and increase awareness of their business activities and enhance their brand.  On other side we guide local / international buyers including Georgian diaspora abroad and investors to find right company, right property, right partner and guarantee intelligent purchase decisions.

On Top of this as a founder of portal www.propertygeorgia.ge I was invited to host Real Estate TV section on one of the influential business Televisions.

Property Georgia also runs blog on property market insights, trends, developers and investors video blog.

What are the tendencies and latest trends on Georgian real estate market?

In 2017 Investors sentiment towards Georgia’s property market remains promising and buyer appetite trends growing, Tbilisi, Black sea coast and winter ski resort properties are in radar for local and international investors from CIS and Middle East Countries.

Georgian development companies proactively expand geography of their marketing and sales activities to increase exposure and showcase advantages of the country’s real estate sector, projects they run, the introduce new practices of tourism and real estate collaboration. All this actions position Georgia as one of the best touristic and real estate investment destination. Our digital portal www.propertygeorgia.ge empowers the sector and it’s players to increase property market exposure inside and outside country.

Among core factors attracting foreign investors are affordability of real estate prices, high occupancy rates and competitive yields (as number of tourists visiting Georgia is increasing dramatically), property appreciation potential, transparent and easy taxation, simplicity of registering property and permanent residence possibility.

Based on our partner company Colliers International Georgia’s research in the first half of 2017, at around 12,353 transaction units were recorded in Tbilisi on residential real estate market. As compared to the same time-frame of 2016, the figure increased by 22%. It also should be noted, that share of newly-built flats in total transactions amounted to 52%. The average selling price of newly-built flats in Tbilisi stands at USD 603 p/sqm. In comparison with the same data of 2016, the figure dropped by 3%. The average selling price of secondary (old) flats is around USD 556 p/sqm, reflecting insignificant (1%) decrease as compared to H1 2016. Residential market is one of the most active sectors of real estate market. On average, 75% of total transactions represent the residential sector. Retail market is shifting from outdated buildings to modern shopping centers. Since 2012, 11 new modern shopping centers have opened and few more are under the construction. The Hospitality market in Georgia is fueled by a consistent growth of tourism sector.

What are the largest real estate projects in Georgia and how real estate market has evolved during these years?

Today we have several completed and ongoing brand-new development projects shaping future of our capital city and other regions. Among them are well-thought residential, mixed-use, commercial, office, retail projects that introduce new standards of urban development and construction. During last 10 years Georgian real estate market, it’s players and buyers have evolved significantly, but still we face a lot of challenges, like low quality construction projects damaging urban outlook and future of the city.

There is a big question mark about space zoning and urban development of capital city and other regions..  What kind of new developments we need to introduce for making our cities livable, improve quality of life for population, business environment, tourists experience?  How authenticity of architectural-historical buildings can be preserved? how can we give them new life to fit in modern standards of tomorrows cities?

The main answer to this question hopefully will be covered by long-term general land use plan, that will guide all players of real estate sector..

Property Georgia is a partner of EEA Real Estate forum, which takes place in Kiev, what are your expectations from this event and how it will affect the Georgian real estate market?

Propertygeorgia.ge  as s strategic partner of 3rd EE Real Estate Forum and Awards 2017 . For the second year, we support the event as a strategic partners as we believe the Awards is one of the most important platform for the real estate players. We have helped organizers to facilitate and submit up to 15 Georgian development projects for nomination.

​The ballot of nominees for the EE Project Awards is judged by a panel of about 50 top real estate executives leaders in the fields of construction, design, engineering, investments, development and related areas. The methodological partner of the EE Project Awards is EY.

Colliers International Georgia’s CEO Irakli Kilauridze is invited as an expert jury member for the Forum and Awards organized by Ukrainian Real Estate Club.

Eastern Europe Real Estate Forum & Project Awards embraces 200 REAL ESTATE PROFESSIONALS DEVELOPERS, BANKERS, INVESTORS AND POLICY MAKERS FROM KAZAKHSTAN, AZERBAIJAN, BELARUS, GEORGIA, MOLDOVA AND UKRAINE. Taking part in this forum provides a great opportunity for Georgian Real Estate companies  to present specific Georgian projects to potential investors and developers, as well as to discuss recent trends. The forum is attended by representatives from companies that know the region very well, meaning that they are aware of the political and economic risks.

Hope this year will bring win to win outcomes for all real estate forum participants .