The main cause of sale price hikes in the construction sector is personnel shortages

According to Beso Ortoidze, CEO of the development company «Arsi», the value of real estate and sale prices rise each day due to the personnel shortages.
As a study by the Business Association Index shows, the greatest sales price growth is expected in the construction sector. BAG index demonstrates that 21% of the surveyed companies have already raised their sales prices in the third quarter of 2025. 32% are expected to do this in the fourth quarter.
The problem is that, despite different opinions in the sector, the situation today is politically stable for ones and unstable for others. Detention impacts investors and the economic situation in the country negatively.
A growing trend for building materials and rising wages makes the real estate prices grow naturally.
To tell honestly, the price growth happened in 2023, when it was 30-35% per year, and for two years it was about 60%. It was not a sharp growth. The rise of real estate prices this year was 6-7%. Prices have stabilized for the second year in a row.
The global problems began in 2019. In 2019 an annual growth was 10%, but in 2022-2023, the increase of prices accelerated, setting a new benchmark. Before that, the price of one square meter was 800-900 dollars, now it is $1 500 on average.
Now, the market is set to accept this price. There are expectations that it is a temporary situation, and it would decrease, but experts believe that the price would remain. The main target now is not to let prices rise sharply in the next 2-3 years.

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