"As the government plans to support the development sector, the share of old apartments in sales tends to decline," TBC Capital reports.
The document says that the subsidization of mortgage loans will contribute to the issuance of about 450 million GEL of mortgage.
Experts say that there will be consumers who had previously planned to buy an apartment among the beneficiaries.
TBC Capital reports that government measures will increase sales by about 10%.
"In May 2020, a state plan to support the development sector in the amount of GEL 434 million was announced: GEL 70 million - subsidizing 4% of a mortgage loan for five years when buying a new apartment worth up to GEL 200,000; 14 million GEL - a state guarantee for five years in the amount of 20% of mortgage loans, for loans of up to 200,000 GEL with a surcharge of at least 10%; 150 million GEL - purchase of housing for families of internally displaced persons; 200 million GEL is a guarantee of the completion of the project for the construction of residential real estate on <30% of the area, provided that the unrealized area will be acquired within three years," the research reads.
Immovable property expert Lia Itashvili agrees with the forecast of the study.
She says the government's initiative to subsidize mortgage loans for new apartments will make new housing more expensive.
In her words, old apartments will become cheaper, as demand for them will decrease.
Bela Gelashvili
News Author