Georgia’s first real estate guide Property Georgia plans to increase its activity on international markets in 2020. During the global pandemic period, the company identified specific areas in which local market players require consultation. Property Georgia will gradually introduce you to its new partner firms, with whom it has signed a memorandum of agreement on cooperation. Such a partnership was agreed with the international investment advisor and fund manager RE RISE GmbH - a company which management shows more than 60 years of experience in the areas of real estate, investment and fund management of 40 real estate funds with a total investment volume of € 10 billion and more than 65,000 Investors.
“In the post-pandemic period, it is particularly important to help companies attract investors and ensure that they have access to finances. This sector can have a stimulating effect on related industries and economic sustainability,” states the managing partner of Property Georgia Lika Kardava. According to her, the health of the real estate and construction sector can be improved by facilitating access to finances and finding new sources of funding. “To this end, Property Georgia will be actively cooperating with the German firm RE RISE, which conducts investment management in the real estate sector across the world.”
Property Georgia managing partner Keti Tabatadze explains that the company’s decision to focus on attracting international partner firms to the Georgian real estate market was partly conditioned by the new reality created by the Covid-19 epidemic. “The main question on everyone’s lips today is: how do we continue operating under the new rules in the face of the pandemic, and what is the ‘new normal’? Property Georgia first announced its intention to become more active internationally back in early 2019, and last year was outstanding in that regard. This year, the unforeseen circumstances caused by the pandemic have increased the demand for trustworthy and proper expert consulting services. That is what the real estate guide Property Georgia is offering its partner companies. RE RISE GmbH, with their lengthy experience and substantial investment resources, present an excellent opportunity for local companies that are looking to establish international partnerships,” states Ms Tabatadze, adding that supporting individual companies will ultimately reflect positively on the recovery of the sector as a whole.
RE RISE GmbH is an independent international company that manages innovative investments in the fields of project development and real estate. The company operates in Germany and other developed and developing markets. The success of RE RISE GmbH is reflected out of the experience of the management, which has administrated over 660 properties and development projects in Germany, United States, United Kingdom, Netherlands, France, Sweden, China, Brazil, Romania, Bulgaria, UAE and Montenegro. Currently RE RISE is managing projects in China, Brazil, East Europe and starting shortly in India.
“First of all, I would like to congratulate you for what your country has achieved with regards to tackling the coronavirus epidemic. There has even been an article in the German press describing Georgia as a model for others during the pandemic. You have done everything the right way, creating a sense of trust among investors and the perception that things in your country worked very well during the crisis,“ states RE RISE GmbH Project and Investments Director Joerg Baehren. According to him, many investors see potential in Georgia, and its tourism and hospitality markets in particular. As for the residential real estate segment, Mr. Baehren sees it as local in its nature. “Georgia is quite a small country with limited space, and you do not want to plaster it with concrete. Therefore, there are limited possibilities for big international investors to come in. On the other hand, there is a chance for local investment funds and smaller investors to speed up growth in this sector.”
During and after the pandemic, one of Georgia’s main advantages will be its ‘green zone’ status. The European Union placed Georgia on the list of 15 non-member countries to whom it opened its borders. “It is vital that our country can take full advantage of the EU’s endorsement and its success in tackling the coronavirus outbreak, strengthen its global position as a COVID-safe country and use this momentum to attract small and medium-scale investments,” states Lika Kardava.
“As far as I understand, Georgia will soon open up to tourists again, which will benefit your country. Tourists will want to come to Georgia, including more people from Western European countries, for whom it is only a 3.5-hour flight away – a similar distance to Majorca, for example. They will trust in your country, and will take these experiences back home with them,“ adds Joerg Baehren.
At this stage, Georgia has only opened its borders to five EU countries – Germany, France, Lithuania, Latvia and Estonia.
Joerg Baehren plans to visit Georgia again soon. Last year he attended the international forum ‘Building Sustainable and Resilient Cities,’ which was organised by Property Georgia in Tbilisi. Mr. Baehren familiarised himself with the country’s investment opportunities, and RE RISE GmbH now views the Georgian real estate market as a priority for the company. To this end, it plans to establish a long-term partnership with Property Georgia.