Real estate prices have not changed

The significant increase in the dollar rate has created increased prices on many products, however the price rise did not touch those goods, including real estate, which were already being sold in foreign currencies. However analysts note that the corresponding decrease in the lari rate has created panic in the real estate market, and there is an expectation that it will devalue further.

According to real estate expert Guram Palavandishvili, the decrease in the lari rate has made it possible to maintain real estate prices but the number of sales has decreased. Those who have real estate for sale don’t hurry to sell it during a time of currency instability.

Any rise in real estate prices will depend on the influence of the dollar rate rise on the prices of construction materials, wages and so on. “If all of these components increase the cost of building it is possible that developers will increase real estate prices,” says analyst Vakhtang Khmaladze, who does not exclude that due to the economic crisis, the number of new construction projects in Georgia might fall sharply.