MAQRO Construction: Three Years of Valuable Trust-Building
MAQRO Construction appeared on the Georgian market 3 years ago. However, it turned out to be enough to gain the trust on the Georgian market and become one of the largest investors. Georgia Today Business had an interview with the Chief of Project Development, PR, Sales and Marketing Officer – Mr. Oguz Kaan Karaer.
Since 2013 MAQRO construction has made quite large investments in Georgia. What makes Georgia so attractive an investment for you?
International company MAQRO Construction is one of the largest investors in Georgia. Since 2013 the company has brought together a variety of projects such as residential complexes with unique concepts - Green Diamond and Green Budapest, International 4-star Hotel Mercure Tbilisi Old Town, Furniture store chain Bellissa and restaurant Dinehall, unique for its culinary creations and marvellous interior.
As in Georgia there is a healthy and stable investment environment, we recognized the need for quality construction on the Georgian market. Therefore, we decided to share our own experience and entered the market in 2013 and to this day have invested more than USD 70 million. The residential complexes Green Diamond and Green Budapest are the largest-scale investments of international company MAQRO Construction. The key to our success at MAQRO Construction is a responsive approach to business, quality control and the management team’s ability to recognize changes in the marketplace and adapt to them. MAQRO Construction continues to invest in the Georgian market and has ambitious plans for the near future.
Did Georgia meet your expectations and how do you assess the business environment existing in Georgia?
As I mention in Georgia there is a healthy business environment. The indicator of the annual return for the real estate investment is very high in Georgia, if you compare it to the other countries. This is the too important fact while purchasing a real estate. Investing in Green Diamond is a very profitable. First of all, unit planning and the concept of the complex is very attractive, starting price of the sq. meter is 750 USD, in case of full payment the price is only 637 USD. In May 2018 when the construction is finished the customer will have more than 50-60% profit within just 2 years. I think you agree that this is a very high indicator. I will tell you the second example: let’s consider 3 rooms apartment with the price 43 000 USD. In Green Diamond residential complex, the customer can easily rent for 500 USD. That means that the inhabitant can recover the cash in only 7 years with the early 14% return. In a real estate business this rates are really high, compared to other countries, where the yearly return is just like 5-6%.
Flexible and unprecedented payment conditions are one of the main reasons for selling the apartments at this pace. The initial price for the fully renovated units with the kitchen furniture, built-in appliances and bath headset is from 25 000 USD. The clients are allowed to pay 2.500 USD for the first payment and 250 USD per month. Payment terms are extremely tailored to the customers:10% - first payment, 30% of the total amount is distributed for 30 months, so it means that customers are paying only 1% monthly. When the construction is completed (May, 2018) customers’ need to pay delivery payment - 60%. At this period, they can use bank credit, very easily pay the credit from the part rent fee and use other part for own purposes.
What is Georgia’s potential for attracting foreign investments?
Currently, the Georgian business environment is very attractive for foreign investors, the high return for investment and the low level of bureaucracy strengthens that fact. The government protects investors, as all the legal processes are developed rapidly and you don’t need to waste much time or freeze funds. In our case we are happy with the country, which is why we are developing so many projects and plan to develop much bigger investments.
For instance, we started sales for Green Budapest in September 2014 and have already sold nearly 90%. In the case of Green Diamond, we sold 50% of the apartments at the first stage in just 1 month. This achievement motivates our company to start new projects. These are not just numbers for our company as we have a very sensitive approach to our customers and take into consideration their needs and interests.
Our strategy is to develop Green projects, ecologically clean and healthy environments. Approximately 30% of the apartments are bought for investment and 70% for living purposes. People 35 to 55 years of age, with a busy lifestyle, who want to have a very stable investment, purchase an apartment in our building complexes, as they find it very beneficial to invest in real estate and especially in our complexes, as to them it has a very favourable location and concept. On the other hand, we have families who want to change their surroundings for a green area, healthy environment, comfortable setting, perfect location, and quality construction.
MAQRO Construction recently launched a new, large scale investment – residential complex Green Diamond…
The new residential complex of MAQRO Construction, GREEN DIAMOND launched on 28th of May. Construction of Green Diamond consists of three stages, the first stage of which includes 731 units.
This unique residential complex is being built in an ecologically clean district of Tbilisi, near to the Olympic facilities. Next to the residential complex Green Diamond a mega project – the Technological University, will be established, which will be unique in Eastern Europe. The area of the residential complex will be almost 70,000 m2, with 23,143 m2 internal green territory. It will offer a unique, brand-new and affordable life in Tbilisi. In the residential complex you can find 23 living blocks and 1772 units. You will be able to satisfy all your needs, including with the 3 swimming pools, 4 basketball areas, 4 outdoor fitness areas, 4 children’s playgrounds, 7 pergolas, indoor sport facilities, walking and running tracks, commercial areas, social terraces, kindergarten and school.
As Green Budapest is the first residential complex, it became the business card of MAQRO Constructions’ quality. In Green Budapest we are going through the handover period of the units, so people can be assured of the high quality, as in Green Diamond the construction and renovation materials will be exactly the same as it is in Green Budapest. MAQRO Construction has gained the trust of the people, as the construction of Green Budapest was completed even earlier than the promised time, with the best quality. Interested people can visit the sales office, where 5 showrooms are presented- units with the renovation materials in Green Diamond will be exactly the same as it is in the showrooms.
Creating a proper product, optimal planning, affordable prices and flexible payment conditions have resulted in the success of Green Diamond. So people are using this opportunity very actively and this makes us happy also.
What are your future plans in Tbilisi? Are you planning new projects in other cities of Georgia?
MAQRO Construction has huge plans for the future. We are very proud of our projects and we are not going to stop. The environment shows us the need and demand of the market. So we are thinking to construct a village of villas in an ecologically clean area of Tbilisi, and high rise buildings for the high income segment in the city centre. On the airport highway we have a plot of land and we are planning to construct a hypermarket of home items and décor.
As for outside the capital city, we are taking into consideration construction of a residential district in Batumi, where we already have a plot of land. At this moment I cannot give you more detailed information. Let’s leave it as a surprise.
MAQRO Construction’s main goal is to become a leader in providing value-added services to our customers by creating a successful partnership with leading companies. Our pledge is to establish lasting relationships with our customers by exceeding their expectations and gaining their trust through exceptional performance. Company MAQRO Construction carries out the daily work based on international best practice. Here, the implemented quality system is a guarantee for comfort and high quality services. Our main objective is to become a premier construction company in Georgia.
What are your impressions of Tbilisi? What would you say to your fellow investors about Georgia?
I have been living in Tbilisi since 2014. I like the atmosphere in the country, it’s very safe, and the people are friendly and hospitable. Georgia is a very beautiful and interesting country, everything that you see around you is centuries-old glory and wealth. The nature is marvellous; in this small country you can find alpine zones, sea, protected areas and so on.
My suggestion to fellow investors is to offer a high quality product with the optimal time management, to offer a unique product and, what is most important, to take a niche - these are the main components for success.
MAQRO Construction has a high responsibility approach towards its obligations and its activity is carried out of a prior consideration of customers’ interests. MAQRO Construction builds not only high quality buildings on the Georgian market, but provides trust and reliability to the Georgian people.