The FINANCIAL — Leading development company in Georgia Redix is supporting the purchase of real estate through its seven magnificent projects which are to make buyers feel more secure. Over the course of seven days the company is to present seven new projects to the public. Customers will have the opportunity to choose the project most fitted to their needs over the 7 month project period.
The project which started on 7 th of October includes the sale of apartments at BCV.
“All seven projects have been designed according to the needs and demands of customers, and are fit for the existing situation,” said Mariam Tsulukidze, Marketing and Sales Director at Redix.
“The global economic crises, which caused instability at work, in the business environment, still prevent individuals to make a big investment. Losing a job, suffering from a salary reduction, slowly developed business are the major fears which negatively reflect on decision making process. Those are the main reasons why people do not make an investment in real estate. Existing situation drove us to consider customers preference and to tailor such products which inevitably will beat the current feeling of instability,” said Tsulukidze.
The first project introduced to the market was – You Buy We Rent. If a customer purchases a house, Redix will rent it out for them.
“We undertake the obligation to rent out the house maximum in one month period after the sales agreement will be signed. One square metre of flat in our apartments is rented for a minimum of 10 USD and maximum 15 USD. This obligation will be fixed in an agreement which will be signed between us and the customer. Redix takes the obligation to rent the house for a minimum of a year, so customer is safe and secured during this period.” said Tsulukidze.
If the customer pays 50% of the total price the rest is covered by rent income. In practise the customer do not have to pay banks liability as the rent income covers this itself, meaning the customer does not have additional risks for purchased real estate.
“We already have customers interested in the first project, despite the fact that we did not conduct so far big marketing activities and mainly advertised this news through newspapers and social networks,” said Tsulukidze.
“The purchase of an apartment is a long-term process and many factors need to be considered. Three real customers in a two week period is a good indicator. We believe that the next projects will be so interesting that we will see huge demand from customers and the outcomes will also be positive,” Tsulukidze added.
“If we look at advertisements, we will find that a single-room apartment with capital repairs costs maximum 250-300 USD, while at BCV renting price for a single-room apartment is minimum 600 USD. The price of a square metre is 3 times more at BCV than other tariffs in the neighbourhood. Consequently there is higher ROI for the customer,” said Tsulukidze.
According to Tsulukidze the biggest demand for BCV apartments is from foreign expatriates. The main reason for this is the perfection of the complex which unites supermarkets, shops, banks, cafes and even a kindergarten. Soon a modern spa centre will be added to the complex.
As well as these facilities BCV is served by a cleaning company which takes away waste twice a day, and cleans the elevator and hall. Moreover, the complex is highly secure. Strangers cannot get into the building as entrance requires special cards, and on top of that there is camera control.
“All these criteria explain why foreigners prefer our complex. We have many apartments rented out and the majority of tenants are foreign expatriates which are in the country for temporary missions or are working in Georgia for 2-3 years,” declared Tsulukidze.
The second project which Redix introduced on the market is to purchase a house with the possibility of remuneration by Redix. So if the customer purchases an apartment and within a two year period falls into hard times and is short of money to pay the bank liability, then Redix will offer to pay back the money for the apartment.
“If within the two year period following purchase a customer incurs financial problems, those who purchase an apartment at BCV can get their money back from Redix, in return for the apartment,” said Tsulukidze.
An advantage of this project is that the customer does not need to waste a time in finding the potential customers to sell his apartment. Redix according to the agreement guarantees to return money back to the customer.
“We are proud to have such offers available, which are novelty for Georgian real estate market and did not exist beforehand. The development companies including us mainly focused on stimulating sales via different promotional gift giving campaigns and also via different payment forms. Today is a different situation and we, as the innovator company tailored and developed 7 different products which clearly identifies current situation and best fits the customers’ demands. Real estate developers have to start crisis recovery process and we are pioneers in this regards. We believe to have followers to our quite ambitious announcements,” declared Tsulukidze.
“Luckily our company did not crash during the crisis. During the crisis period we even completed 2 projects – BCV and our A Class Business Centre located on Tabidze 1,” declared Tsulukidze.
The minimum price of a square metre at BCV starts from 1,450 USD. The price is indicated by the floor; the higher the apartment the higher price it has. Moreover, the location of apartment plays an important role. The owner of the house gets the completed house, so can move in immediately and start living. Moreover, the apartment is equipped with Bosch kitchen appliances and kitchen furniture as well as there being a Bosch air conditioner in the main room.
In total this project has 169 apartments, from which 20 are left for sale since the beginning of the project period.
“Before the year 2008 the sale of 20 apartments might have been quite easy, however considering today’s position and the current situation of real estate sale, it has become difficult and there should be some motivation. Individuals should feel secure and it should be less risky to purchase real estate, especially considering the components we offer,” declared Tsulukidze.
Redix will be starting new projects soon, which will be in the hotel direction. 3 projects are planned, in Abastumani, Bakuriani and Kobuleti respectively. In Kobuleti there will be hotel type rooms. At present the projects are in the final stage of planning and construction will probably start in the spring.
“In Kobuleti we plan to make hotel type apartments. We will be renting out houses while the owner is away, from which the owner will get additional income. This offer is in the development stage and when we start sales we will provide well developed terms for customers,” declared Tsulukidze.
For businesses Redix offers A class, B class and C class type business centres. There is a wide variety of choice according to budget.
“If you have the ambition to sit in an A class office we recommend Tabidze 1, if you are short of your budget than the Kazgebi C class office is a good choice,” said Tsulukidze.
The price of A class offices ranges from 35-60 USD in Tbilisi, while the Kazbegi 47, C class office price starts from 5 USD per square metre.
“We have European standards by which we govern the construction process and try to follow these standards, so the value of the building is high. As for the Tabidze project, this project is one high-price project. There are many advantages of Tabidze 1. There are negotiations being held with several customers and we believe that at the end of the year the Tabidze 1 business centre will be completely full,” declared Tsulukidze.
“The trend for business type centres is increasing. There are several objects which are being finalized. One aspect is the building process and the other is the demand. Before the process is regulated and companies start moving to business centres en masse, this option will be under question,” Tsulukide added.
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