Due to the current situation, investments in the construction sector fell by 90%

TBILISI(BPI)- “The undesirable results of the construction regulations are already evident and need immediate and comprehensive response,” Irakli Rostomashvili, the head of the Georgian Association of Developers,  says.

“The new regulations created a new problem –the number of employees in the corresponding services of the City Hall has decreased  5-fold that hinders a full control over their implementation. Vacancies cannot be filled due to the lack of qualified staff, developers have to stand in line to obtain the permissions they need, ”he notes.

According to Irakli Rostomashvili, this is only a small part of the problems caused by  the new regulations.

“New regulations impede the construction development which accounts for about 7% of total GDP, and given indirect factors, development sector  about 30%. The introduction of regulations was necessary but it should have been gradual, ”he explains.

In Rostomashvili’s words, due to the current situation, investments in the construction sector fell by 90% caused by the tightening of the rules for issuing building permits and reduced  the number of permits by 63%.

The complicated procedures and norms have already increased the cost per square meter by $ 100 that  will certainly affect the final price of real estate, Irakli Rostomashvili points out.


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