The FINANCIAL -- Since Georgia is an importer of energy resources, legitimating energy efficient systems should become obligatory, believes the management of the development company m2. After successfully completing two residential projects, the company launched a new project at 6 Tamarashvili str. Residents of m2 apartments will benefit from an energy efficient system, with the advantage of having reduced utility costs. In addition, m2 has diversified its projects by offering both premium and optimal lines of residential apartments.
“Our position is that energy efficient systems should be legalised on a legislative level. All companies should be assigned to energy efficient construction projects, at least the external insulation of a building’s facades. This is one of the recommendations from our side for the new construction code,” Irakli Burdiladze, Chairman of the Supervisory Board of m2, told The FINANCIAL.
Burdiladze welcomes the introduction of the new construction code initiated by officials. However, he thinks it is imperative that it should be thoroughly studied and carefully considered. “The code should ensure quality construction. At the same time, it should not be done at the expense of developers. The requirements and their monitoring should be well defined,” said Burdiladze.
m2 at Tamarashvili is financed by International Finance Corporation (IFC) and the Canadian Government. The credit line amounts to USD 14 million. Out of that amount USD 4 million has been issued by the Canadian Government for the construction of energy efficient projects. m2 at Tamarashvili project will be energy efficient. This will allow residents to reduce utility costs in winter.
The residents of m2 at Tamarashvili will receive the apartments in a renovated condition. It will be a turnkey system. In the renovated apartments, residents will be able to enjoy an Italian kitchen, built-in oven and exhaust hood. House planning, interior design and renovation materials will be selected in accordance with the requirements of the householder. m2 at Tamarashvili is a 19-floor, 270 apartment complex. The first floor is entirely allocated to parking.
Each apartment has a stained-glass open door, window and balconies. The project is unique in terms of its surrounding green environment.
The completion of the complex is scheduled for September 2016.
According to official data of the National Agency of Public Registry, in June 2014 the registration of real estate transactions increased by 9.4% compared to the same month of the previous year. It amounted to 45,802 units. The number of transactions has increased by 12.2% in the primary housing segment and by 11.8% on the secondary market.
According to Burdiladze, the crisis provided a good lesson to development companies. They became more cautious and started better developing risk management as a result. This is the key reason behind the ongoing demand for new residential apartments.
“Sales activity is quite high. Over 71% of the m2 at Kazbegi project is already sold. 55% of the m2 at Nutsubidze project is also sold. As for the m2 at Tamarashvili project, there are 300 potential purchasers on the waiting list, while the total number of apartments is 270,” said Burdiladze.
In Burdiladze’s words, due to the high level of trust in the company, m2 manages to sell the major share of its apartments before their completion. “From the example of m2 I would say that out of the two completed projects the major share was sold during the construction process. In regard to the hippodrome project, which is now completed (ahead of the schedule), 97% of apartments are already sold. And the remaining 3% will be sold in the next few months.”
m2 has started the diversification of its projects. Apartments will be available for customers with different capabilities and requirements. Two new lines will be launched soon. The first will be the optimal line, affordable for any segment. In the case of a two-bedroom renovated apartment the price will start from USD 29,000. The premium line will be offered to high-income individuals, which would also be adapted to suit each premium class apartment owner’s individual needs and lifestyle.
“The premium line of apartments will be made to order on an individual basis. The price will therefore be different. The product will be quite expensive, as judging by the location of the land the cost is relatively high,” said Burdiladze.