Lika Kardava
Founder of #1 Georgian Property Guide Portal www.propertygeorgia.ge
Choosing a reliable construction/development company and project is highly significant if you wish the project to be of high quality and completed on time.
Purchasing a flat or a different kind of real estate is a major financial transaction for many people, as they conduct that purchase with money saved over many years, or with a bank loan.
You will probably agree that when making such an important decision, one must choose a reliable development company. Unfortunately, the development sector today contains numerous inexperienced companies that are oriented towards short-term profits, and are failing their customers by completing their projects late and to a low standard.
To protect yourself from such risks, I would advise you to spend more time studying the chosen development company/project, and to put the following questions to the company:
- How experienced is the construction/development company?
This is the most crucial question that can influence your final decision.
How many projects (and which particular ones) has the company completed, and did it keep to the schedule and the promised terms?
The choice of a company is acceptable if there is at least one successful project found in its portfolio.
How to check a company’s experience:
- View the company’s website, read about its history, its management team’s experience, and its past/current projects;
- Talk to clients who have already purchased real estate from the said company;
- View the company’s ongoing construction projects; check the quality of construction (which building materials have been used, seismic sustainability, whether or not energy-efficient insulation and isolation systems have been used, whether or not the developer pays due attention to the planning of the engineering systems – gas and water supply, sewage, electricity, etc.); carefully study the project plans, building materials and their provenance (if possible), the composition of the residential complex infrastructure (yard, parking, sports and health centres, shops, etc.); which post-completion services are being offered by the developer, and at what cost?
- How financially stable is the company?
If there is uncertainty about the company’s financial health, then there are risks of:
- The company being unable to complete the project
- The company using cheaper building materials of inferior quality
To protect yourself from such risks and make sure that the project is financially secure, I would advise you to check which bank the development company is cooperating with, whether or not the bank is financing the construction, whether or not various stages of the construction process are being completed on time, and whether or not the flats are being sold successfully.
- How experienced are the team and the companies working on the development project?
As you know, construction is a complex process that requires the involvement of numerous companies. A professional real estate development company ought to be working with a (preferably international) team of top-level consultants, engineers, architects, brokers and lawyers. Such a synergy of professionals is a prerequisite for the success of a project.
- Does the company have its legal documentation in order?
Check and ensure that the construction/development company has all the necessary construction permits. It would be advisable to consult an independent lawyer to ensure that the legal documentation is complete.
- What about the prices?
Of course, we all wish to find a company that offers the desired property at a low price. However, if prices are surprisingly low, or if a company is offering unrealistically good payment terms, then you ought to be careful and not be fooled!
On the other hand, you must bear in mind that if you are looking for high-quality real estate, high prices alone do not guarantee high standards. It would be advisable to thoroughly discuss the price breakdown and project quality (based on the aforementioned criteria) with the developer.
- To what extent does the developer care about the environment?
Construction is a prerequisite for the urban development of cities and countries. However, how harmonized the development projects are with the environment, is a sensitive issue.
Take care of the environment! Try to choose a company that does not damage the environment, uses energy-efficient materials, and includes the concept of green space in each of its projects.
As a result, you and your family will live in a healthier environment!
I hope that the above-discussed issues will help you choose a company and project that is reliable and corresponds to your preferences.
I wish you a successful investment!
Lika Kardava
Founder of Property Georgia
