Georgian National Bank’s New Regulations will Create More Secondary Offers on the Market for Real Estate
The president of the Association of Banks Aleksandre Dzneladze expects that secondary offers on the real estate market will increase as a result of new regulations by the National Bank of Georgia.
Namely, in his opinion citizens who are not able to “girao” (A practice in Georgia in which one leases their property to another party long term in exchange for a lump sum that must be returned to the leasing party in full in order to take back ownership) their property (because the regulations will make these practices less common), will instead try to first sell a second, non-residential estate (in the case where someone owns additional property) to meet their demands and then, if it doesn’t become integrated into the economic cycle in a timely manner, they can then proceed to sell their primary property
“We do not believe that citizens will be left without residential housing. It is possible that in a short time the existing trends in the construction business may be turned around 180 degrees and instead of an extension, there will be an increase in the demand on the minimum number of apartments (residential space).” states Dzneladze.
According to him, in parallel to a secondary market, a wave of supply might result in price drops on primary offers on the market.
You can read more about the president of the Association of Banks’ assessment of theon-going changes in the finance sector.