| Capital City and Resorts Dominate out of the Best Places to Invest in Georgia |
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01/06/2009 16:51 (986 Day 07:40 minutes ago) | |||||
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The FINANCIAL -- Most of the Georgian construction companies interviewed by The FINANCIAL name Georgia’s capital Tbilisi , as the best region in the country to invest in 2009. Bakuriani and black sea regions are also named as attractive places for investors to concentrate on in the construction business. Most of the developers also say that it’s more profitable to invest in residential spaces than in commercial ones.
“We would advise investors to put their money in to projects predominantly in Tbilisi , Bakuriani, or the black sea region. The priority of a region or district is determined by our company according to the existing demand and perspectives of that area,” says Zaza Razikashvili, President of the Development Company Olympic Star.
Olympic Star officials note that the final decisions regarding construction projects are based on the results of extensive researches. “It is currently more profitable to invest in commercial and residential spaces,” Razikashvili notes.
Olympic Star is one of the best known companies operating in the Georgian construction sector, and was established at the beginning of 2006. According to company representatives, Olympic Star mainly works on mass projects, skyscrapers and multifunctional residential complexes.
Another Georgian construction company Axis, which has existed on the local market since 1998 explains that investing in Georgia is very perspective and a strategic step for businessmen, but requires very labour-consuming researches and planning.
“It’s very difficult to say for certain which of the regions is the best to invest in. It all depends on the investors’ aims, sums and interests but at the moment the most attractive are Tbilisi and resort zones,” Revaz Nijaradze, Representative of the Marketing Department of the Company Axis, says.
Axis explains that today the Georgian market is full of ageing and derelict buildings. “There is a lack of quality products for office and for commercial and residential spaces. Such a situation as this reveals the need on the market for such products and this need will only grow with time. Raised demand on the market will determine the attractiveness of real estate products among investors,” Nijaradze notes.
Construction Company Arci believes that at the moment investors are less interested in Georgia. “They are getting more attractive invitations from places in the USA and Europe,” a company representative says. “They are more attracted to investing in a politically stable country,” says George Baidarashvili, Head of the Marketing Department of company Arci.
However Baidarashvili knows that there is a group of investors still considering Georgia an attractive country to invest in. “And they are thinking about implementing profitable investments in the country. We are continuing relations with two groups from the United Kingdom, which will invest in one of our projects in 2010,” Baidarashvili notes.
Arci officials believe that it’s more profitable to invest in residential spaces, because demand in Georgia in this sector is quite high.
Company Arci was established in 1989 asan architectural company and started real estate construction in 1992. Arci will celebrate its 20 year anniversary on 18 February, 2009. Arci is not orientated at the construction of separate buildings, but the development of residential districts.
“Likani, Bakuriani, Kobuleti, Borjomi, Gudauri, Sighnaghi, Telavi and Svaneti are very interesting regions for tourism. But for investment, Tbilisi , Batumi and Kutaisi are the most realistic places for investments right now,” claims Tika Rukhadze, Head of the PR and Advertising Department of company Center Point.
Center Point officials declare that throughout the world, real estate is the safest and most reliable sphere to invest in.
Property developer company Rakeen Development says Georgia is in general an attractive country for investors. “Rakeen Development’s main aim is to promote a new style of living in the country and the development of tourism infrastructure in Georgia. The development of different tourism and resort zones in Georgia should be very interesting and attractive for investors,” Sophio Mamardashvili, PR and Events Manager of Rakeen Development says.
Rakeen is the largest property developer in Ras Al Khaimah. Established in the United Arab Emirates (UAE) Rakeen incorporates sustainable, responsible, eco-friendly planning and design of world-class resorts and residential property development.
Building company Deplus advises investors to invest in Old Tbilisi and in the western part of Georgia, specifically the region of Racha.
Deplus has been engaged in active housing construction since 1999.
Mamuka Soselia, Head of the Marketing Department of company Deplus says today it’s more profitable to invest in commercial spaces.
“According to statistics the most attractive place to invest in Georgia is Tbilisi ,” says an independent expert Akaki Kheladze, Director of Graduate Studies of Caucasus School of Business.
“In Tbilisi there are located the vast majority of business centres, offices and trade centres in the country, and the bulk of the population lives in the capital also”.
“Tbilisi is a very active place from most points of view, for example in the sight of employment or social activeness, so that’s why Tbilisi is considered to be the most attractive place for investing,” Kheladze told The FINANCIAL.
“Due to the financial slump, most construction projects have now stopped temporarily, but before the crisis, Tbilisi was among one of the most popular regions for businessmen to invest in. As well as Tbilisi there are many other places in Georgia which should be developed in the sights of boosting the construction business. For example the country’s mountainous areas should definitely become more popular among investors due to the unique environment that they offer,” Kheladze says.
Written By Tako Khelaia
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