Beso Kavtaradze, a member of the Governing Board of the National Real Estate Association of Georgia, states that the demand for renovated apartments in the real estate market has increased sharply recently. As Kavtaradze explains, the trend is especially noticeable among foreign buyers, who prefer ready-made, move-in or rent-out properties.
“Recently, the demand for completed and fully renovated apartments has noticeably increased in our market. Foreign citizens who buy real estate in Georgia as an investment often fail to organize the renovation process, which requires additional time and effort,” Kavtaradze explains.
It’s time for developers to change the product
According to him, about 95% of the housing stock on the market today is sold in a frame state, although the trend is clearly moving in the direction of developers starting to deliver renovated apartments.
“In the long term, development companies will have to reconsider their product. The share of frame apartments in the market is too large. A foreign investor who buys an apartment with us is more interested in having the property ready. This approach, if spread on a large scale, will significantly increase sales,” says Kavtaradze.
He also notes that several Georgian development companies have already started offering a similar service – handing over an apartment in a fully renovated state, which is being positively received by customers.
“Developers are already appearing on the market who also offer repair services to clients in new projects. This means that the investor receives the apartment in a ready state and can immediately rent it out or sell it. I think this approach will become more and more widespread,” he notes.
Foreign buyers are the main driver of growth
According to Beso Kavtaradze, the trend of renovated apartments mainly falls on foreign buyers. It is difficult for them to manage the construction and renovation process remotely, so they prefer a finished product.
“Non-residents prefer to receive an apartment in a finished state, when the construction is completed, to have the property ready for rental or living. This demand is growing day by day, and I think developers will be forced to adapt to this expectation of the consumer,” says Kavtaradze.
According to his own assessment, Georgian buyers have more flexibility in this regard, organizing renovation work is relatively easy for them, so they are mainly interested in frame apartments.
Expecting a positive effect on the market
According to Kavtaradze, the supply of renovated apartments will have a positive impact on the real estate market, both on sales figures and on investor interest.
“If developers offer buyers more flexible internal installment terms and switch to renovated apartments, sales will clearly increase,” he adds.
🔍 To summarize:
• Foreign buyers are increasingly demanding renovated apartments;
• Developers are having to modernize their products and offer a comprehensive service;
• Companies are already appearing on the market that deliver apartments in a ready-made state;
• The trend is positively affecting sales and investment volumes.
