Advices for Developers

Advices for Developers

The plots are disappearing. The plenty of the builders – developers approach. Together with other foreigners the Moscow billionaires have appeared on the market. “Axis”, “Arsi” and other companies are taking tens of plots. “Dirsi” is carrying out a project “The city in the city” on the outskirts of the city worth a billion. Apartments are becoming expensive. Bank services decrease threefold. The world crisis is in crisis itself. That is if you are bored by pursuing stable 7-8% per year in London, come to Tbilisi and work for 200-300% per year in a new development.

Hello, I have heard that in London if you invest money, you gain per year – 10%, in Japan – 5% , in Russia – 50%, and, for example, America – 20. And here, in our place – 300.

I don’t know why, I’m not economic, micro – macro analyst, but I’ll offer a typical example:

Saburtalo (economy class b)
Land: 2000 sq. m Price: $500
Under construction 10,000 sq. m
Construction cost: $400 per 1 sq. m
I.e. expense:
Plot – 2000 X 500 = 1 million.
Construction – 10000 X 350 = 3,5 million.
Total: 4.5 million.
Income:
I Floor, Price: $ 4000
That is 1500 (the first will be this size store) X 4000 = 6 million.
Apartments, Price: 1500 $ 1 m
That is 8500 X 1500 = 12 750 000
That is total income 6 000 000 + 12 750 000 = $18 750 000
The gain: $ 18 750 000 – 4 500 000 = $14 250 000
That is a profit of 270%