As Maqro Development looks to the future, its focus on innovation and strategic market positioning is set to drive the company’s next phase of growth. This article explores several key topics, including the company’s upcoming projects, innovative features in future developments, and its approach to pricing and market adaptation. A significant part of the discussion is how Maqro Development has evolved from Maqro Construction, much like Maqro Tourism has, broadening its scope and deepening its expertise. Oguz Kaan Karaer, Deputy General Director, provides insights into how the company is preparing for future challenges and opportunities.
The Genesis
Maqro Construction’s rise began with a landmark project Green Budapest that set new standards in urban living. Launched in 2014, Green Budapest was a groundbreaking project in Tbilisi, featuring 350 fully fitted apartments designed to offer a smooth living experience from the start. The development aimed to minimize post-move-in disruptions by including complete kitchens and modern technical +amenities. Oguz highlighted the project’s broader vision, stating, “Our Budapest project was more than a building; it was about fostering a sense of community. We integrated amenities like green spaces, playgrounds, and fitness facilities to promote a healthy lifestyle.”
This project was a game-changer, introducing features that were rare at the time, such as extensive recreational areas and comprehensive community services. However, maintaining these amenities came with challenges. “The cost of services, including security and maintenance, was a significant consideration,” Oguz explains. “We addressed this by offering one year of free maintenance to give residents a positive initial experience.”
Building on the success of Green Budapest, Maqro Construction unveiled the Green Diamond project in 2016. Spanning around 70,000 square meters and featuring 1,688 apartments, Green Diamond signifies a major evolution in residential living. Located in Dighomi, next to Olympic complexes and 8 km from Tbilisi’s city center, this development merges luxury with eco-friendly living and includes a wide range of amenities, such as swimming pools, sports facilities, and educational centers. Oguz noted that the Green Diamond has set a new standard for contemporary residential living in the city.
Strategic Shift and Expansion
In its ongoing quest for growth, a strategic decision was made to separate Maqro Development from Maqro Construction. Maqro Construction will now focus solely on major infrastructure projects, such as road construction and the development of an ice skating center. “These projects are crucial for our expansion strategy,” Oguz notes. “While they are distinct from our residential developments, they contribute to our overall vision of enhancing urban environments.” This separation allows Maqro Development to become even more involved with its residential projects and strengthen its engagement with the community. “Our third focus is Maqro Tourism, which specializes in hotel construction. Our projects include the Mercure Tbilisi Old Town, Ibis Styles City Center, and the newly opened Swissôtel Tbilisi, which launched in 2024. We build hotels for branded companies and manage them ourselves under the Accor brand.” Explained Oguz.
This strategic diversification allows Maqro Development to leverage its expertise in new areas while continuing to innovate in residential development. The company’s approach involves thorough market analysis to identify gaps and opportunities. “We are constantly analyzing market trends to find opportunities and create products that meet evolving consumer needs,” Oguz states. “This proactive approach helps us stay ahead of the curve and deliver value to our clients.”
Economic and Real Estate Dynamics
A comparative analysis of the real estate markets in Georgia and its neighboring countries reveals significant differences that impact development strategies. Markets in neighboring countries often feature higher apartment prices and living expenses, which can pose challenges for investors and buyers. These elevated costs frequently limit the potential for attractive returns on investment.
In contrast, Georgia offers a more affordable real estate market with high rental yields. This affordability makes it an appealing option for both local buyers and international investors. The lower costs, combined with higher rental yields, create a more accessible investment environment with better potential returns.
Oguz Kaan Karaer comments, “The differences between the Georgian market and those of neighboring countries are quite pronounced. In other countries, high costs can restrict investment opportunities, whereas in Georgia, the affordability and strong rental yields present a more attractive proposition. We’re leveraging these market dynamics to offer products that deliver exceptional value to our clients and investors.”
Strategic Pricing and Market Positioning
Pricing strategy is a key element of Maqro Development’s approach to market positioning. The company’s dynamic pricing model, which involves starting with lower prices and gradually increasing them, has been effective in driving sales and maximizing revenue. “Our pricing strategy allows us to attract early buyers and manage demand effectively,” Karaer says. “It also ensures that our projects remain competitive in the market.”
Maqro Development’s dynamic pricing strategy has been instrumental in the success of their residential projects, providing substantial advantages to early investors. For example, with Green Budapest, initial prices started at $700 per square meter and climbed to $1,500 during pre-sales. Today, these units are valued between $2,500 and $2,750 per square meter on the secondary market. In a similar fashion, Green Diamond began at $700 per square meter, increased to $1,350, and now averages around $1,500.
Innovative Features and Design
In Tbilisi, Maqro Development is embarking on its largest residential project to date, located in the Samgori district near the Ministry of Internal Affairs. This massive development will feature 4,000 apartments, making it the largest of its kind in the city. The project is designed with a focus on community and family-friendly amenities, including a nursery school, a children’s pool, and an indoor fitness center.
Oguz Kaan Karaer, a key figure in the project, emphasizes the improvements made based on feedback from earlier developments. “With the new Tbilisi project, we took a deep dive into the feedback we received from our earlier projects and implemented several significant upgrades,” Karaer notes. These upgrades include larger aluminum windows to enhance natural light and expansive views, as well as modern sliding doors to improve functionality and aesthetics.
Simultaneously, Maqro Development is advancing a new project in Batumi that continues the green concept championed in Tbilisi. This development is set to offer similar sustainable and eco-friendly features, catering to both families and individuals. “Our goal with the Batumi project is to provide a comprehensive residential experience that caters to both families and individuals,” Karaer explains. Unlike many other major Batumi projects that focus exclusively on the seaside, this development will stand out by emphasizing greenery and a connection to nature.
In line with its practice of rewarding loyal customers, Maqro Development is offering pre-sales exclusively to those who have previously invested in their projects. Karaer elaborates on this approach: “We offer pre-sales exclusively to our loyal customers who have previously invested in our projects. These clients follow our developments closely and continue to do business with us because they know investing at the early stages ensures a guaranteed profit. As our projects’ sale and rental prices increase significantly over time, early investment is highly advantageous. Until the end of 2024, pre-sales will be reserved solely for our existing customers, with official sales set to commence in 2025.”
Meeting Consumer Demands
Maqro Development is dedicated to staying ahead of evolving consumer demands by rigorously analyzing market trends and adapting its projects to address these changes effectively. This commitment is evident in the strategic adjustments made to their development plans, ensuring that they align with current market needs and preferences.
One prominent example of this adaptability is the incorporation of studio apartments into new developments. This decision was driven by the increasing demand from foreign investors and students who are seeking smaller, more manageable rental spaces. “By offering a variety of apartment sizes and configurations, including studio options, we are able to cater to a wide range of needs and preferences,” Karaer notes. “This approach allows us to better serve diverse demographic groups and respond to specific market demands, enhancing the attractiveness and versatility of our developments.”
Additionally, Maqro Development has introduced flexible payment terms to further increase accessibility and affordability for potential buyers. Recognizing that financial flexibility is crucial in today’s market, the company has restructured its payment options to include a range of choices for down payments and installments. “Our new payment structure is designed to make our projects more attainable for a broader spectrum of buyers,” Karaer explains. “By offering various payment plans, we aim to accommodate different financial situations and provide more opportunities for individuals to invest in our properties.”
Maqro Development’s future is characterized by innovation, strategic pricing, and a focus on meeting consumer demands. With its commitment to advanced features and market adaptation, the company is well-positioned for continued success in the real estate industry. As Maqro Development moves forward, its focus on excellence and adaptability will drive its ongoing achievements.
