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📉 As of August 2025, Georgia’s real estate market is practically at a standstill. Sales have declined, construction is frozen, and both investors and buyers are approaching the market with caution. 👉 In this difficult reality, a solution does exist — but the decisive role lies with the government. 🏛️ 1. Government Involvement Must Become the Key Factor The main causes of market stagnation — high interest rates, strict valuation policies, and limited access to finance — require firm government intervention. Necessary measures include: Government-subsidized mortgage programs Guaranteed loans for new construction Targeted banking products for emigrants with state backing A national fund for financing startups and small businesses Fast and affordable credit access 🔽 2. Affordable Credit Policy – In Partnership with Banks Mortgage rates in GEL exceed 13%; consumer loan rates are over 30%. The solution lies in: Reducing interest rates with government co-financing Targeted programs for young people purchasing their first home Long-term low-interest loans for green and regional development projects 🏗️ 3. Support for Construction – Restarting the Engine of the Economy The government should: Provide bank guarantees for development projects Launch programs focused on increasing employment Support municipal development budgets in cooperation with the private sector 🌍 4. Emigrant Support – Through Targeted Government Programs Special initiatives could include: “Home for the Emigrant” – affordable mortgages guaranteed by the state Partnerships with foreign-issuing banks Online approval/registration system under a “single window” model 🚀 5. Rescuing Startups and Innovation To emerge from the current critical status: State grants for innovative businesses Pilot zones in regional areas Tax incentives to attract private investors 📢 6. Stimulating Domestic Demand – With Government Support Tax incentives for homebuyers Temporary suspension or deferral of property tax Support programs for young families – 0% down payment mortgage scheme 🔚 Conclusion: 🎯 If the government does not intervene actively, the market may shift from stagnation to recession. Relying solely on the banking sector is no longer sufficient. Rapid, comprehensive, and targeted measures are needed — through the combined efforts of the state, private sector, and financial institutions. 📌 MBG Group – Offering Real Insights, Strategies, and Trusted Partnership in the New Real Estate Reality 📞 +995 592 72 72 47 / +995 592 72 72 00 🌐 www.mbg.ge
