As mortgage loan interest rates climb, more Georgian homebuyers are turning to internal installment plans offered directly by developers, says Beso Ortoidze, director of Arsi.
Despite a 13% drop in new mortgage loans in the first half of 2025 (24,000 loans issued), real estate transactions have not declined. Ortoidze attributes this to the growing use of developer financing and buyers using personal savings.
He warns that while internal installments are helping maintain sales, they’re not sustainable long-term for developers, who prefer sales backed by bank financing.
“If mortgage lending continues to drop, it could pose challenges for the market in the second half of the year,” Ortoidze said.
Ortoidze also expressed hope that interest rates on mortgage loans will decrease, making them a more attractive option for buyers and supporting healthier long-term dynamics in the real estate market.
