Koba Kalichava, a professor at Tbilisi State University, is calling for fewer building permits, mandatory licensing for developers and a ban on selling apartments based solely on project plans. As Business Partner reports on his appearance on its programme of the same name, his aim is to bring construction quality and financial reliability into sharper focus.
These are reform proposals put forward by the professor. The report mentions neither a draft law nor a government announcement. The list of licences under Georgia's licensing law currently makes no provision for a separate developer licence; approval is granted for each individual construction project.
Demand and quality should be the deciding factors
Kalichava wants new development to be guided more closely by a prior assessment of demand. In his view, only companies that meet defined licensing conditions and whose activities are subsequently monitored should be allowed to build.
A building permit alone does not guarantee good construction quality, he argues. He also considers higher penalties an insufficient solution. The key, he says, is to prevent problems before a violation occurs. He also sees a need to improve workers' qualifications.
Why off-plan sales are in focus
Using the term “selling air”, Kalichava criticises a model in which developers sell planned apartments and use the proceeds to finance construction. He wants companies to have the financial resources and professional expertise needed to deliver a project from the outset.
His proposal thus touches on a fundamental question when buying a new-build property: What underpins a project's completion? At the heart of his criticism is the construction project's dependence on advance sales revenue.
What does this mean for buyers and investors?
For anyone looking for a new-build apartment in Batumi or Tbilisi, the debate draws attention to the delivery process behind the sales documents. In our view, the developer's experience, project financing and documented construction progress should be considered together.
We recommend visiting completed reference projects and asking for an explanation of how the remaining construction phase will be financed. Clear agreements on the payment schedule, specifications and handover date are equally important. This makes it easier to assess how an advertised floor plan will become a usable apartment.
Our conclusion
In our view, the debate addresses an important issue: Reliable developers and good construction quality strengthen confidence in Georgia's property market. Alongside infrastructure and economic development, this reliability is one of the foundations of an attractive investment location.
The proposal advances the discussion about how Georgia's cities can grow well over the long term. A stronger focus on soundly financed and carefully executed projects supports liveable neighbourhoods and provides a solid foundation for properties to retain their value over time.
