ADB provides $10 Million Loan to Develop Affordable Housing Projects in Georgia

By Khatia Bzhalava

Wednesday, October 20

The project will provide 3,700 affordable and energy-efficient apartments for people on low- to middle incomes.

Optima is a subsidiary of m2 Group and Georgia Real Estate (GRE), one of Georgia’s leading residential and commercial real estate companies.

On October 19, the Asian Development Bank (ADB) and local company Optima signed a $10 million loan to develop affordable and sustainable residential housing developments in the Georgian capital city of Tbilisi, the ADB reported.

According to the official statement, the loan will finance two residential complexes of 3700 affordable and energy-efficient houses for the low and middle-income populations. The loan is unprecedented as it is ADB’s first private sector housing project in the South Caucasus and Central Asia.

The majority of buildings in Georgia were built during or before the soviet era and lack recreational areas, parking facilities, and elevators. Accessibility to public spaces for the elderly, people with disabilities, women, and children are also below the high standard. As ADB reported, in 2019, the government of Georgia presented a plan to facilitate sustainable urban development, spatial planning, and inclusive infrastructure in the capital.

“The project aims to modernize affordable housing in Tbilisi by incorporating inclusiveness into the design and adopting gender-responsive and accessibility standards. These housing developments demonstrate how the industry can generate affordable and quality housing for low- to middle-income communities in Georgia and throughout the region,” said ADB Private Sector Operations Department Director of Infrastructure Finance for South Asia, Central Asia, and West Asia Shantanu Chakraborty.

According to ADB Country Director for Georgia Shane Rosenthal, the apartments will be affordable, energy-efficient, and well-built, providing the elderly, people with disabilities, women, and children with appropriate accommodation. “ADB’s loan is part of our ongoing commitment to the development of livable cities in Georgia,” he noted.

Optima is a subsidiary of m2 Group and Georgia Real Estate (GRE), one of Georgia’s leading residential and commercial real estate companies. According to Nikoloz Medzmariashvili, Group Chief Executive Officer of m2, it is important to note that the design of the buildings will be aimed at introducing high standards of energy efficiency and accessibility.