It isn’t approaching the level of before the crisis, but it has increased significantly.

Before the economic crisis real estate was experiencing a peak in demand. Flats were being sold in buildings that were still under construction. The August War and economic crisis significantly influenced the Georgian market.

Elite residential houses’ prices today vary from 1,500 to 1,800 USD per sq.m, whereas a few years ago it was 1,700-2,000 USD. That’s the price of un-renovated “white framework”. The term of delivery which investment companies offer consumers is an apartment ready for decoration. Renovations per sq.m cost around 100-150 USD. To buy and completely decorate a house requires about 400,000 USD per 180-240 sq.m.

Beside the price reduction dwelling space has also decreased. Whereas before the crisis consumers demanded 200-300 sq.m apartments, now demand has decreased to an average of 150 square meters.

Since the crisis economy-class apartments have had fewer buyers than elite ones. The reason is that the crisis affected the social classes. Affluent people can still afford to pay solid money for high class real-estate.

“In 2008 the highest price of our company’s apartments was 1,500 EUR. Nowadays the price of an apartment in the same conditions is 1,500 USD,” explained the representative of CID Architects.

“It is profitable to build elite residential houses because it’s more stable and solid than other types of residential houses,” explained Lili Ardazishvili, from investment company Award. “This is a product which has its own consumer, one who has income, experience and taste. We will always have consumers because the business elite prefer to collect real estate. This is the best investment for them,” said Ardazishvili.

In reality Rustaveli Residence is the only building in Georgia which meets all the criteria of elite residential houses. This is Capital Vostok’s first project in Georgia and is located in the very heart of the city, between Rustaveli Avenue and the Georgian Parliament. The top 11th and 12th floors feature the original, top category penthouse flats. Each one’s price varies from a million to a million 200,000. Only 2 penthouses are for sale at the moment.

“I was given 160 sq.m in this building,” said Manana Chikovani, resident of an elite house on Bakradze Street. I had a flat in this place, but an investor came, destroyed the old building and built this house. Almost all the old residents live in this new house now. Only the last floor belongs to a new resident. However the top floor is still under construction and no one lives there yet.”

“The minimum price for 1 sq.m is 1,600 EUR and maximum - 2,600 EUR per sq.m. At the moment 20 flats are for sale. The other 40 flats will be given to residents from Tabukashvili 50. Also a high standard sports hall has been determined for the first public school and 1 level for the Georgian Parliament. The whole space is 3,723 square meters,” said Dimitri Napetvaridze, Director and founder of Capital Vostok.

Elite residential house in Batumi White Magnolia is located in one of the cultural and administrative centres of Batumi. It is near to the new boulevard, which is the closest one to the sea. The 12 floor modern building is the largest scale modern residential building and commercial complex in Batumi. In White Magnolia the penthouse is an elite residential area. 1,500 USD is its price per 1 sq.m.

White Magnolia contains 860 apartments and 79 commercial spaces. The hotel type complex has various facilities: modern security systems, security, a cleaning service and 24-hour room service.

“Residential and commercial complex White Magnolia belongs to management company Dexus. It governs 100% of Center Point. So Center Point has started construction and Dexus is finishing it,” said Nino Natroshvili, PR Manager of Dexus.

Next to White Magnolia another luxury residence is located. It is called Lujkov House, named after the former Mayor of MOSCOW who invested in the project. Lujkov was a close friend of Aslan Abashidze, pro-Russian politician who lost power following the Rose Revolution. There is no information today about this house at Batumi Municipality. It doesn’t belong to Lujkov anymore, but Batumi city, a representative of Batumi Mayor’s Office said.

“The construction of Lujkov House began when Aslan Abashidze governed Batumi. At this time Lujkov was in charge of the construction and that’s why it is called Lujkov’s House. Then this building was given to Adjar Invest, which handed the building on to another company. This company gave it to Batumi city and it has belonged to Batumi city from April 7, 2011,” explained Irakli Sulmanidze, Head of Batumi City Hall’s architecture office.

Impressive views, balconies and terraces are typical signs of elite residential houses. The dwelling-space of an elite residential house varies from 180-220 sq.m. The architectural style is important too. If it has a classical style it is more expensive. If it is a hotel type elite residential house, a concierge will be available to residents. This also raises the price. But the main thing that determines whether a residential house is elite or not is location. It must be located in a closed space, where there is a peaceful and quiet area. Elite residential houses must be located in the centre of the city.

Source: www.finchannel.com