![]() For example, the volume of foreign investment in real estate during the second quarter of 2020 was USD 79.8 million, compared to USD 297.6 million during the same period last year. Nevertheless, the process of attracting investment is currently also facing obstacles. Both FX deposit and mortgage rates currently remain below the rental yield, underlining attractiveness of apartments as income-generating assets.” Mr. GEL mortgage rate dropped to 10.8% in September, currently 3.5pp lower than May’s high. If we consider the current investment market conditions, on the rise since the beginning of 2020, average FX mortgage rate increased marginally after August (5.7%), standing at 5.8% in September. Significant interest also comes from European countries and Israel, which accounted for 6% of investors in 2019. “If we look at the 2019 statistics, Mideast countries accounted for the largest share of investors with 42% of the total figure, followed by Russia with 18%. According to the company CEO, interest towards Georgia is particularly high among Mid Eastern countries and Russian investors. ![]() From the day the company was founded, it has been striving to create interest towards Georgia among foreign investors, and has accumulated considerable experience in attracting funding from abroad. York Towers has brought numerous investors from Europe and the Middle East on board of its projects over the last five years. Nevertheless, 2021 will be a year full of challenges as developers will have to work hard to attract investment. “As soon as the pandemic took shape, we began focussing our efforts on the speculative investors whose contact details we had collected at a time when they were expressing great interest,” company CEO Amr Alabwaz stated, adding that this method allowed the development firm to meet its minimum financial targets for 2020. The company has been successfully operating in numerous countries for many years. ![]() It is worth noting that York Towers is not solely reliant on the Georgian market. The company states that it is trying to keep up with the current global trends and offer customers acceptable terms that are tailored to them. International development firm York Towers is among those actively working to ensure that continuous development is maintained, while simultaneously looking after customer interests. On the other hand, news about COVID-19 vaccine results are encouraging for economic recovery expectations going forward. However, increased infection numbers and additional restrictions imposed for the second wave of the Corona Virus are likely to hamper the recovery pace in coming months. As for the number of new apartment transactions increased by 3% YoY in the same month. Notably, standing at -15% YoY, the transaction growth rate of old apartments drove the decrease of total transactions in October. The analysis points out that with developers innovating on marketing prowess to include financial benefits, discounts and easy payment options to attract buyers during the lockdown, as well as the state offering a mortgage subsidy program, sales have seen an uptick in the third quarter of 2020 over the preceding one. These figures illustrate the significant damage sustained by the real estate and development sector as a result of the pandemic.įollowing relaxations in lockdown restrictions in summer, the residential market in the country, which had witnessed a slump due to the pandemic, is now slowly showing signs of recovery.Įstimates provided by market surveyors show that city-based developers managed to sell over 22,600 transactions with a total of circa 1.5mln Sqm area in 10M of 2020, when compared to 30,700 during the same period last year. Between January and October 2020, the newly built apartments market shrank by 24% in Tbilisi and by 36% in Batumi compared to the same period last year, according to the sector analysis prepared by Colliers International.
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