Construction sector’s recovery is being observed in Georgia. Compared to the same period of the previous year, approximately 30% growth is registered in the construction sector where the number of the employed has increased as well as the investment capacity and banking loans issued to the sector, etc. It should be noted that in 2013 the share of construction in  gross domestic product was 6.7%, in  the two quarters of 2014 this figure has risen to 7.4%. The inflow of foreign investment in the construction sector totaled USD 49 847 million last year. In 2010, this figure fell to 4 705 million.

The construction of several large-scale projects has been launched in Tbilisi on foreign investment. Turkish, Chinese, Armenian and Spanish major investments should be especially noted that initially will have a significant impact on this segment of the economy and later on development of the real estate market. The increased activity of foreign capital in the construction sector has changed the market structure, approaches and moved it closer to modern standards. 
 

Due to well-known reasons, after the 2008 crisis, the construction sector of Georgia has proved to be in a very difficult situation. Developers, who worked on the so-called pyramid principle and actually sold the air, faced a financial crisis. Uncivilized methods of game affected companies, as well as the clients who are trying to return the money thrown into the air but to no avail.

In the last two-three years, foreign companies have entered the market and offered a completely new approach. The new players came in the market with solid capital and offered consumers the finished product of modern standards, which significantly increased customer confidence towards developersas well as a demand for newly constructed real estate. Foreign companies offered the customers absolutely new product – an apartment, accompanied by a life-friendly environment and infrastructure. 
 

One of the prominent examples is “AS Group investment” company which  has  10-years of experience in the construction sector.

To make construction and manufacturing process complete, the company combines several directions, including raw materials extraction, production of construction materials, construction, construction and investment projects management. In 2011, AS Group investment founded a subsidiary company of AS Georgia in Georgia. In 2012, AS Georgia began the construction of the most large-scale residential complex in Georgia-  “Dirsi”. A residential district located on the area of  40 hectares  includes housing blocks  which contain 4 898 apartments.

The introduction of the modern approaches to a field of construction has significantly increased aninterest of the Georgians living abroad in the real estate market of Georgia.

Finally, an investment made in such real estate means guaranteed profits in the future.

Source:commersant.ge