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June 2007

Jun. 10, 2007 - Georgia on my Mind

Georgia on my mind…

 

Well, that’s the wrong Georgia, actually.  The Georgia that’s on my mind these days is the Republic of Georgia, a Eurasian country in the Caucasus at the east coast of the Black Sea. It is bordered on the north by Russia, on the south by Turkey and Armenia, and on the east by Azerbaijan.

 

Figure 1 Map of Georgia (Lonely Planet Map)

The territory of modern-day Georgia has been continuously inhabited since the early Stone Age. Georgia was Christianized in the early 3rd century and unified into a single monarchy in 1008 and then experienced periods of revival and decline until being fragmentized into several smaller political entities in the 16th century. Imperial Russia acquired Georgian lands in a piecemeal fashion from 1801 to 1866.. Independent again in 1991, after a period of chaos of  civil war  and severe economic crisis, Georgia stabilized  by the late 1990s. The bloodless Rose Revolution of 2003 installed a new, pro-Western reformist government, whose aspirations to join NATO and attempts at bringing the secessionist territories back under Georgia's control has resulted in a deterioration of the relations with Russia. Currently, the government is also working toward joining the European Union.

There’s the background.  I recently returned from a ten-day trip to Tbilisi, the Georgian capital—my second visit in two years.  My reason for going is my work with a non-profit organization, the International Real Property Foundation, which has as its mission to help emerging economies build their real estate infrastructure through formation of professional organizations (real estate sales companies, surveyors, and appraisers) which can lobby for reform and educate the practitioner members.

As in most of the Eastern European nations, the Georgian people had no idea how to manage their real estate economy.  When property became privatized, there were no mechanisms to assess value, hold title, transfer title, or borrow money for purchases. The entire system had to be built from ‘scratch’, and it is still a work in progress.  One of my most interesting real estate moments in Tbilisi was visiting the open air market and park: on certain days, properties which are for sale are posted on the trees in the park.  Purchasers wander through the forest, looking at descriptions and photos, and make arrangements to view the dwelling.  I might add that not all properties are actively for sale: the person standing by the tree may have heard a cousin or other relative observe that MAYBE they’d like a larger place, and so the enterprising salesman simply posted the property description and figured negotiations could take place whenever an interested buyer surfaced.

Of course, there’s no licensing or competency requirements to sell property, or to appraise it.  The government in Georgia (and most of the other countries I’ve mentioned) does not see itself in the licensing business for occupations—that’s not a ‘democratic’ function in their view.

All the more reason to form a professional association, of course.  Educational and practical requirements can be enforced, and the public will have some tool for evaluating the competence of the practitioners, be they appraisers or brokers and salespeople.  But forming organizations is not a skill that comes easily to people who remember life under Socialism.  Americans belong to clubs as a way of life, but Georgians don’t understand concepts like bylaws and elections and dues.  That’s where my experience as an association manager comes into play, and is a large part of what my activities in Tbilisi this May.

 

100_0313.JPG

Figure 2 Tbilisi

This second visit was limited to working within the city limits of the capital of the country, an urban setting of close to two million people.  Snow capped mountains border the city, yet the weather along the river plain that is the city center is almost subtropical.  The population is quite diverse: Russians, Armenians, Turks, Jews, Germans all live together in relative harmony, it seems—according to the newspapers I read, living harmoniously with diversity is a very strong imperative.  Education and the arts are also a very real part of every Georgian’s life, and the literacy rate in the country is an enviable 100%.

Figure 3  “All human beings are born free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood.
(Article 1 of the Universal Declaration of Human Rights)”

 

The snapshots that remain in my mind are of a hot, humid city teeming with a diversity of people.  Most are casually dressed in jeans (never shorts) or Western style business clothes. Most interesting is the traffic as I watch it from my hotel window or try to survive it in the back seat of a car or taxi.  As my driver explained, there’s really only one rule of driving in Georgia: if there’s no car there, you can go there.  This means that two way traffic is not limited to one side of the street, and large paved intersections are a free-for-all.  There are relatively few traffic lights or stop signs, and those that are in evidence are meant to be a way for Georgian drivers to challenge authority.  Parking seems to fall under the same rule: park where there’s a space—and if that includes the sidewalk, well—too bad for the pedestrians.

Figure 4 Not my photo, but this is Tbilisi traffic!

Georgian food is wonderful.  I especially like Georgian cheese, salty and flavorful, and the Georgian answer to pizza, Khachapuri or cheese bread. Khachapuri comes in many shapes and sizes: my favorite is the boat shape with egg.  Unfortunately, the Marriott hotel where I stayed thought it should serve Italian food, of all things, and so finding good Georgian food on this trip was difficult.

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Figure 5 Khachapuri

Tbilisi has been undergoing a rampage of uncontrolled building during the last few years—skyscrapers, large office buildings, and apartment complexes.  The economy is rapidly growing, due to the strategic location of Georgia on major trade and oil routes, as well as a growing awareness of its attractiveness for tourism.  Of course as more and more growth and construction occurs, so to grows the need for better tools for transfer of property and for protection of the landowner’s investments.    One trip won’t be enough for me to accomplish my job of enabling a viable professional community: I am eagerly anticipating my return.

 

 

Judith Lindenau

June, 2007

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A behind the scenes look at organized real estate--what works in an association, what doesn't, and what a long time AE sees as challenges facing the industry from the viewpoint of its professional organization.

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