The FINANCIAL — 10 Office Centres are operating in Tbilisi. Four centres are of A Class, while 6 centres – of B Class. It is reported in the review of the real estate market in Tbilisi in 2007 made by "Deloitte & Touche" Kiev Office under order of Tbilisi Mayor’s Office.
It is noted in the report that one could hardly say without expert evaluation whether the A Class centres met the international standards. The A Class centres make 10% of the total office area, B Class centres – 44%, while C Class centres – 46%.
The amount of monthly payment for rent of the office areas in A Class centres makes $35-$45 per 1 square meter, in the B Class centres – $20-$25, in the C Class centres – $10. Average payment for rent of 1 square meter of the office area makes $23.
Demand of the high-class office centres in Tbilisi is conditioned with the increased number of international companies. Domestic companies are also improving their conditions. Growing demand of the high-class office centres and lack of similar areas leads to increasing of the payment rate and the high coefficient of workload. Investing in construction of similar centres becomes more and more attractive for the Georgian development companies.
The index of profitability of A Class office centres makes annual 12-14%. The coefficient is one of the highest ones. Compare: similar index makes annual 10,5% in Kiev, 9,3% – in Moscow, 6% – in Budapest and 5,5% – in Warsaw. High index of profitability in Tbilisi is conditioned with lower cost of such kind of real estate compared with the majority of cities of East Europe, while the rent payment is rather high, and it accords to the East European index.
Extra 6 office centres are under construction – 5 of A Class and 1 of B Class. During 3-4 years, the areas of the A Class office centres in Tbilisi will be increased by about 700-800%.
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