Investments in real estate compensates for risk premiums (compared to money deposits) and more than covers its costs (Mortgage interest rate). Average rental price for residential property continues to fall and reaches its historical minimum since March 2013.

One of the most puzzling aspects of the Georgian labor market is what is known as the “qualification mismatch”. While unemployment is high, many positions remain vacant due to a lack of qualified applicants.

Over the last weekend, I was invited by an international development bank to run a workshop in the nice Hotel Eden in Kvareli, Kakheti. The topic of the workshop was “Georgia’s economic future”.

The rental price index registered the sharpest annual decline in November 2014. Average rental and sale prices in Tbilisi continue to follow their long run trends. Average rental prices in Gldani-Nadzaladevi and Isani-Samgori have converged for two consecutive months.

While in an ideal world the qualification preferences of job seekers and employers would coincide, in reality this is often not the case. Besides informational asymmetries (job seekers not knowing which qualifications are demanded by employers) the reason is that employers may be in need of qualifications that are not considered attractive by the job seekers.