Investing in people and housing is a priority for Georgia
Geneva, 10 July 2009 --
As in many UNECE countries, the housing market in Georgia has been hard hit by the financial crisis. In the country, however, the market downtown is coupled with uncertainty about the past conflict and its impact on the future; the two phenomena have weakened consumer confidence and extracted a heavily toll on the construction and building sectors. According to estimates of the Georgian Developers Association, up to 80 per cent of development projects are now frozen. Toxic assets prevail and the mortgage market has been shrunk to the minimum.
The crisis has worsened the problems of a housing sector already facing severe challenges. These and possible solutions were mapped out by UNECE in the 2007 country profile of Georgia’s housing sector. The UNECE assessment described the impacts of unplanned and rapid privatization of the country’s housing, which has led to a neglect of management and maintenance needs. This occurred to a housing stock already deeply affected by natural deterioration and problematic informal and illegal extensions and settlements as well as the effects of the 2003 earthquake. The lack of systematic urban planning, the absence of a comprehensive housing strategy, a sluggish construction industry and little public investment have further impeded progress towards a dynamic housing sector.
A meeting on 8 July 2009 organized by the Department of Urbanization and Construction of the Ministry of Economical Development (MED) in cooperation with UNECE reviewed the several actions undertaken to date by the Government to implement the recommendations and guidance of the country profile. Examples of positive action include the growth of homeowners’ associations, the increased role and involvement of local authorities, the rapid construction of shelters for internally displaced persons (IDPs), efforts to preserve historical buildings and the partial development of needed construction and planning legal frameworks.
The meeting was opened by Mr. Sulkan Sisauri, Deputy Ministry of MED, and involved participants from all the relevant sectors dealing with housing and construction, including government officials, developers, local authorities, non-governmental organizations, international organizations and the development cooperation offices of member States operating in Georgia. Discussions led to a definition of priorities for actions to overcome the market stall and provide people with safe and quality housing.
The development of a construction code and housing policy covering all vulnerable groups was agreed to be a major concern to be addressed in the immediate future. The need to put people first and thus the inclusion of social aspects in future plans for urban development and development policy also won the agreement of all participants. Participants in the meeting concluded that investments in Georgia, now to be facilitated by a new programme developed by the Government, should not only allow the construction sector to overcome the crisis, but also assist people who require adequate shelter and improve their general living conditions.
To learn more about the UNECE country profiles, please visit the dedicated webpage (http://www.unece.org/hlm/prgm/cph/welcome.html).
For more information on the UNECE Housing programme, please contact:
Paola Deda
Secretary to the Committee on Housing and Land Management
UNECE Environment, Housing and Land Management Division
Phone: +41 (0)22 917 2553
E-mail: [email protected]
Ref: ECE/ENV/09/P16