Against the background of pandemics and restrictions, the Georgian real estate market is still actively developing. Despite the restrictions, construction and development companies continue to build both projects and sales. To find out how to cope with the pandemic and restrictions, what is the pricing policy in the real estate market, GEORGIA TODAY talked to the Deputy General Director of one of the largest construction companies, Maqro Construction, Oguz Kaan Karaer.
“The pandemic, like for other big companies, was a challenge for us, but it did not break us. The restrictions made only minor adjustments to the pace of development and operation of our company,” Karaer tells us.
“Maqro Construction operates in different areas of business. Prior to the pandemic, we were working on several projects in Georgia, as well as in the Czech Republic, Turkey and Belarus, including the construction of a five-star brand hotel, the Swissotel Tbilisi Center in the heart of Tbilisi, state projects in Zugdidi and Poti, and the Green Diamond development project, at the third and largest stage, together with the international network Accor. These were planned projects and I can proudly tell you that these projects are still ongoing. This is the merit of the team of professionals who are employed in our company and I want to thank them for that, it makes us really proud.”
Where does Maqro Construction stand now?
The mitigation of restrictions has allowed us to move into a proactive phase of work and at this stage the company is working at full capacity in all directions. It is also worth mentioning the fact that the activities of our company have increased even more against the background of lockdowns, for example, seeing us winning several tenders related to road construction. In May, we started the construction and sale of the third and largest stage of the multifunctional residential complex Green Diamond. Up to 800 families are already living in the first two completed stages. The environment we have created under this project has raised great expectations among people interested in buying real estate. Our customers living in the first two completed stages bring their loved ones to buy apartments and develop businesses on the territory of the complex. In short, the concept on which Green Diamond is built has been 100% justified, and the construction and sales process is accelerating in recognition of this.
What is the third stage of Green Diamond? Tell us about the project.
The main essence of Green Diamond is that the customer can get all the necessary conditions for a comfortable life without leaving the complex. I’ll tell you a short story which happened to me personally in Tbilisi. I visited my friends in Nutsubidze, it was quite late when I decided to leave. The hosts told me I needed 5 tetri for the elevator and gave me a coin. I said goodbye and got in the elevator. I accidentally pressed the parking floor button and this is where my problem started – there was no other way out of the parking lot except the elevator, I no longer had 5 tetris, the phone did not receive a signal to allow me to call my friends! Imagine, I spent two whole hours in the dark. And thank goodness that one of the residents returned home late and my forced detention ended there! It was then that I realized how important it is to plan properly and calculate every detail. This would not have happened in our residential complex. The area of the complex is closed and protected, and provides for almost all needs, be it parking, shopping facilities, recreational facilities such as sports playgrounds, children’s and exercise areas, outdoor swimming pools, etc. The customer should be able to enjoy all benefits. Added to this is the fact that the complex is away from the noisy rhythm of the city, and big shopping and sports facilities are within easy reach. It is also important that at this stage, based on previous experience, we are offering a novelty to customers: Now people interested in Green Diamond have the choice to buy a ready-decorated apartment or in black frame condition. This has increased interest even more. At this stage, the process of construction and sale of three blocks is underway. We will soon start building the fourth block as well. In future, we will start new construction and sales once every three months. The project has lasted 36 months and includes the construction of 11 blocks. In the current project, we have an interest-free installment plan, which also makes it easier for customers to buy an apartment. In addition, different promotions are available at different times with special discounts.
Does the project provide after-sales services for the complex?
Of course. The complex is located on a total area of 7 hectares, one third of which is green space, and this, in addition to the infrastructure, needs maintenance. The complex is serviced by a company that is responsible for the maintenance of the landscaped yard, outdoor swimming pools and elevators, and it monitors, protects and maintains the entire area of the complex. The goal of our company is to create comfort for customers in all regards.
We have created a special service for customer relations that will ultimately control and help our residents solve problems as far as possible. On the website, there is a “Jivo-chat,” where users can communicate directly with customer service about their problems, and there are phone numbers and email addresses. The relationship between us and our customers does not end with the purchase of real estate and the signing of the contract: Our goal is to make the customer satisfied so they can enjoy to the end all the benefits we have created within the complex. I would also like to thank all our customers and once again express my respect for them and assure you that we will always be by their side.
What is the market situation today in terms of prices? As a real estate expert, what should consumers expect in the future?
If we take the data of the third quarter of 2021, the Residential Real Estate Price Index (RPPI) has increased by 6.2% compared to the 2020 average, and this is logical in the environment in which we live, I mean the pandemic, restrictions and the resulting processes.
The pandemic created significant global gaps in the supply chain. Restrictions in different countries continue to slow the flow of raw materials and ready goods, which in some cases leads to a complete cessation of production. Organizations were forced to reduce staff, which led to staff shortages. This further accelerated and deepened the problems that already existed in the supply chain, to which are added inflation, expensive materials, and so on.
All this in general leads to an increase in prices. It is true that in Georgia, and in Tbilisi in particular, that growth is not large at this stage (as I mentioned above, 6.2%), but we cannot escape it in the future. According to statistics from the world’s leading countries, for example, the price of newly built apartments in the United States has increased by 32.6%, while in large cities such as New York, Chicago and Dallas, this growth is close to the 43% mark.
We strive to maintain affordable prices and thus make it easier for customers to purchase an apartment in our complex. This project was already planned, the prices were set, and most importantly, our unwavering position was that the prices must be fixed in the national currency. This applies to both the single payment system and internal installments. I think this makes the process of buying an apartment much easier for our customers. In addition, the company uses individual approaches with all customers. We have discounts, at this stage for example there is a special New Year promotion on apartments and parking lots. We try our best to offer customers acceptable conditions.
I would like to take this opportunity to wish all our customers and future customers a Merry Christmas and a Happy New Year, and a happy life in your new home!
