Tornike Guruli, CEO of hypermarket Gorgia, says a significant rise in construction material prices in Georgia is inevitable due to global political and economic developments.
The increase is driven by several factors, including shortages of raw materials and rising energy costs. Guruli tells BMG that multiple crisis centers are affecting prices simultaneously.
“The first is the crisis and conflict in Iran, which affects many directions. Oil prices and polyethylene have become very expensive, so anything containing plastic has also risen in cost. Some factories in Iran have closed, and major tile factories in India are shut due to gas shortages. Many Chinese factories face the same problem. There is a similar situation in Turkey,” Guruli said.
He added that fuel costs, raw material production, and changing regulations worldwide are all pushing prices up. “China has removed state subsidies for certain products, making them more expensive. Currency fluctuations in Turkey add another factor. Today, almost all types of factors for price increases exist,” Guruli explained.
The CEO said international price differences are dramatic, ranging from 5-7% in the best case to 35-40% in the worst case. “Transportation costs have not stabilized, and we must assume they will rise further. This will lead to higher prices for construction and repair materials in Georgia,” Guruli said.
When asked when consumers would see these changes locally, Guruli said the process has already begun, though large companies are still holding prices steady.
“At this stage, some Georgian companies have already started adjusting prices. We still have stock in large central warehouses and will not increase prices before Easter. However, if the trend continues, post-Easter prices will rise by 5-30%, depending on the product, raw materials, and transportation. Real estate prices will also likely increase by about 20% in the next 3-6 months,” Guruli said.
