Turnover of State e-Auction Increased by 52% in 2015

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The FINANCIAL — Turnover of the Georgian web portal eauction.ge amounted to GEL 255,038,609.66 for the period of January-September 2015, up from GEL 122,927,210.18 from the same period of last year. With 80%, state bodies are dominating in terms of sales. The remaining 20% is divided between private entities. The volume of transactions made by foreigners has amounted to GEL 9,397,642 in 2015.

The 52% growth can been explained by the annually increasing number of users of the portal, as well as the regularly expanding scope of private and public entities that prefer to sell their properties via electronic auction.

Founded in 2010, eauction.ge was the first online auction portal in the entire Caucasus region. The website currently includes both private and public sector transactions. Since 2011 all state agencies and property management, as well as property management portals, have joined the agency’s web page. In accordance, property is managed through the agency’s web page. The web address www.eauction.ge has become a universal portal, which has united all kinds of property sale / privatization in one space. Following state structures, individuals and legal persons have joined and started to buy and sell both movable and immovable property through www.eauction.ge.

The top ten most expensive transactions made at eauction.ge during 2015 range from GEL 1,743,000 to GEL 56,557,963.55. Property sellers have included: the legal entity National Agency of State Property; the National Agency of Environment; the Ministry of Finance and Economy of Adjara Autonomous Republic; and, the National Bureau of Enforcement of the Ministry of Justice of Georgia. The properties sold included buildings, land and license categories for mineral extraction.

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The property of public institutions and legal entities are dominating in sales. In addition, the share of properties of private entities is also increasing year by year. With 80%, state bodies are dominating in sales. The remaining 20% is made up by private entities.

There are 20 categories and 103 subcategories on the website. Bestselling categories include: other (13%); land leasing (7.8%); transport (7.3%); building leasing (6.7%); and licenses (4.6%).

“The diversity of products offered in these categories, existing market demand and accessible prices are the main determinants of the popularity of these categories,” Nata Berianidze, from the Marketing Department of the Service Agency of the Ministry of Finance of Georgia, told The FINANCIAL.

“In order to promote less popular categories, we are offering discounts on products offered for sale. In addition, we are promoting them on social networks. Lots are also uploaded onto VIP lot categories, which are published on the main page of the portal and provide detailed information about assets for sale to users,” Berianidze added.

The National Bureau of Enforcement of the Ministry of Justice of Georgia is traditionally the most active state body in terms of products offered for sale via the portal. As for private companies, the most active is JSC Medical Insurance Group Archimedes Global Georgia.

Real estate, buildings for leasing, as well as various types of property and licenses are the top products offered by state bodies for realization.

During the current year the Service Agency has launched an online consultation service. The innovative Buy it Now service has also been launched. It allows customers to not have to wait for the completion of an auction but to instead purchase a product for a stated cost. The electronic payment system has also been expanded in 2015.

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There are 60,415 resident and non-resident registered users on the website. Out of them, 54,381 are private and 6,034 – legal entities.

The number of daily visitors of the portal varies from 7,000 to 7,500.

There are 2,315 registered non-resident users. The daily number of non-residents is around 200. The number is constantly increasing.

“The diversity of products, opportunity to purchase assets at low prices, security, reliability and confidentiality are the main competitive advantages of eauction.ge in comparison with other online shops,” said Berianidze.

The volume of transactions made by foreigners amounted to GEL 9,397,642 in 2015. The number was GEL 3,107,577 in 2014, GEL 2,603,217 in 2013 and GEL 39,477,740 in 2012.

The cost of assets purchased by foreigners via eauction.ge varies from GEL 66,960 to GEL 8,041,054.5. The list of products incorporate: real estate, naval transport, and other assets.

Land has been one of the bestselling products purchased by non-residents via eauction.ge. From 2013 the Georgian Government decided to prohibit the purchasing of land by foreigners. The overall turnover of land has further changed: GEL 64,578,621.14 in 2014, while by comparison it was GEL 108,409,908.31 in 2012.

Total turnover of the portal eauction.ge in 2014 amounted to GEL 182,572,122.47.

September has been the most active period in terms of sales during 2015. “However, purchasing assets via eauction.ge is always in demand and therefore being enhanced,” Berianidze told The FINANCIAL.

 

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