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A Close Look Into Georgia’s Real Estate

In the last thirty years there have been many parts of the globe watched carefully. The Eastern European country of Georgia has been a particularly interesting place to watch the real estate market. Plagued by a turbulent political climate, financial instability, and military tension in the region, growth has been hard to predict. Following the political changes brought on by the Rose Revolution, the trajectory has slowly shifted towards prosperity and development. Tbilisi-born, entrepreneur and former Defense Minister, David Kezerashvili knows quite a bit about the real estate market in the country, and in this article, we will take a look into his insights.

Still Bound By The Past

Buildings

The post-Soviet economic restructuring across the former communist bloc has been a slow process. Georgia has been similar to its neighbors in this respect. Still haunted by its communist past, many of the old policies remain unchanged, prohibiting Georgia’s people from experiencing a truly free market economy. This is seen heavily in its outdated and disorganized approach to housing and commercial property. 

The country is suffering from a lack of clear regulation which has resulted in government restriction of the citizen’s choices. It’s the opposite of a marketplace where one could play strictly by the rules and get what they want. Due to the chaotic nature, people don’t know whether they will run into a restriction and what the penalties might be. Even in this confusing environment, some individuals find the opportunities to thrive. Put aside a map, because there isn’t one, and one would have to navigate these waters on their own.

What Georgia Wants To Happen

Kezerashvili notes that the government’s lack of speedy policy change is due to the entrenched interests that profit from the-non existent regulatory frameworks. Without written policy, there is little incentive to work towards a common good. Regardless of good intentions from the various levels of government nothing seems to be moving in any direction. 

In a country such as the United States, freedom in the marketplace is a direct marker of a civil and prosperous environment. In a place like the US regulations seem restrictive, but in Georgia, they are needed desperately. Adequate regulation is needed to transition away from the former-Soviet system. The current lack of a regulatory framework gives freedom for those with capital to maintain their advantages over most of the common people. This is a unique situation where more regulation will stimulate the market for the smaller investor.

Moving In The Right Direction

The Former Minister of Defense, Kezerashvili, wants the best for his people and he is also a practical entrepreneur. He believes that this fight is right from first-hand experience. Kezerashvili himself encountered obstacles while working on real estate, and he knows what needs to change so that other individuals can succeed in their endeavors as well. 

Kezerashvili wants to see his country thrive, and in the realm of real estate he believes in new regulatory frameworks to encourage private investment. Kezerashvili truly believes that a more free capitalistic market will bring greater prosperity to Georgia. 

So far the Government has to set limited regulation that helps the market. Still many remnants of long-gone communist edicts still remain. Despite their time being past the fundamental shifts that must occur have yet to appear.

Innovation as the Answer

No matter how restrictive and unsuitable the policies and the environment are, innovation will breakthrough and will be a glaring example of what could be instead of what it is. Vake Plaza is just that, one of the famous architectural feats of modern Tbilisi. Kezerashvili put a lot of work into making sure that it stands out, and it does in a big way. The meeting place for all businessmen of the city, it’s the place where even more innovations will be born.

Building

Kezerashvili has a good reason for why he has chosen Tbilisi. It’s the capital of Georgia, his birthplace, but it’s also the hallmark of great Georgian architecture. You can see all of the many styles that dominated the country over ten centuries, and now is the time to mix in modern architecture.

The Soviet past built a lot of gray unsightly buildings that add nothing good to the picture. It’s time to get rid of them, and show the true beauty of Tbilisi through the past that one could be proud of, and the future that might be even better.

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