Last week the real estate agencies representatives told "Commersant" that in 2011 the demand for real estate in Georgia has decreased compared with 2010.

These statements are made in the light of the announcements of the  National Agency of Public Registry (NAPR) regarding transactions increase in  the real estate market: according to the official statistics, in total 510 794 transactions were carried out in the country's real estate field in 2011 that is 25. 8% more than in 2010.

According to “Galaga" manager, the growth in demand has not been observed in  2011 compared to 2010. As for the increased level of transactions in the country, the manager connects it with a difficult social background, which is why some families are forced to sell apartments.

Radio "Commersant" was interested, in fact, owing to what factor the increase in transactions was observed. As a journalistic research showed, the reason was a registration of the property taken in exchange of debt by banks and private creditors.

It found that in 2011 property worth $ 500 million was transferred to the hands of  the banks, private creditors and MFOs in exchange of debt.

The head of one of the largest real estate agencies "Goro Group" claims that the reason of transactions growth is registration of the property taken by banks and private creditor in exchange of debts.

Other specialists don’t avoid making such statements. They say that today we are faced with a large army of homeless people and to talk about the real estate market growth is incorrect.

"First Credit Union" director explained, any legal act was registered in the Public Registry. Therefore, it is not surprising that the volume of transactions has increased.

According to economics expert Irakli Lekvinadze, watching  the market, sales of primary and secondary apartments are less. Consequently, in his words, a big share of the turnover of this sector comes to sales of the sequestered and remortgaged property.

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