Construction sector takes a downturn

Georgia’s construction center has increased rapidly in recent years but has taken a downturn in 2008, according to the newspaper Realuri Kapitali.

Last year the total turnover of the building sector was up 28 percent on the 2006 figure, which was in turn 44 percent higher than the figure in 2005.

But in the first quarter of 2008 the turnover of the construction sector was down by around 15 percent compared with the same period last year, the newspaper reports.

Analysts are divided as to what has caused the decrease. Some blame the political turmoil since last November; others say the sector’s growth has peaked as only an affluent sliver of the population can afford to invest in new real estate.

Economist Giorgi Tsimintia says that the market is saturated and that most new accommodation is bought by investors who have several properties.