New development projects in Georgia continue to receive bank financing, though with stricter conditions than in previous periods, according to Aleksandre Dzneladze, head of the Banking Association of Georgia.
Speaking on TV program “Real Estate Prospect”, Dzneladze explained that the stricter approaches are linked to a slower growth in the number of real estate transactions, which has increased certain market risks.
“This strictness is due to the fact that the growth rate of transactions has decreased. Therefore, requirements from companies are higher than in the previous period. To say radically that the sector is not financed is not true - real financing exists, although the approach is stricter based on the current conditions,” Dzneladze stated.
Statistical data shows that the number of newly issued mortgage loans has declined. In January-July 2025, Georgian banks issued 28,579 new mortgage loans, a 12.5% decrease compared to the same period last year. However, the total portfolio of these loans increased by 3.5%, reflecting the rise in real estate values.
Dzneladze noted multiple factors behind this trend, including high demand in previous years and increased interest rates.
“Certain changes in the mortgage and real estate market began not only in 2025, but also in 2024. There was a significant boost in 2022-2023, accompanied by regional issues and other trends. Adjustments were also made regarding leases and regulatory requirements. Approaches have changed on the part of developers and mortgage lenders, so it’s not only the increase in interest rates that had an impact,” he explained.
The statement underscores that while financing remains available, developers and buyers face more stringent requirements as the market adapts to evolving economic conditions.
