The rising share of internal installment schemes in real estate transactions has become a notable trend, according to Zurab Eristavi, founder of RENTALS and Eristavi Estates. Recent data from TBC Capital shows that in the first ten months of 2025, 73% of apartment sales in Tbilisi’s primary market were made through developers’ internal installments. Only 7% of buyers relied on mortgage loans, while 20% purchased with cash.
Eristavi told BMG that a more than 70% reliance on internal installments is unusually high and potentially risky. Developers, he argued, often lack the tools and expertise to properly assess the solvency of buyers, unlike banks, which closely monitor client cash flows and credit risks. In many cases, developers offer extremely low or even zero down payments, leaving them with little leverage if a buyer later becomes unable to pay.
According to Eristavi, this dynamic creates vulnerabilities for developers whose construction processes largely depend on ongoing sales. If even a portion of buyers fail to meet their installment obligations, developers might face liquidity problems. He stressed that, had these transactions been processed through banks, the sector would have clearer insight into borrower quality and overall financial stability.
Meanwhile, the National Bank of Georgia is preparing regulatory changes aimed at reducing the widespread use of internal installment plans and increasing access to mortgage loans. The NBG says the reforms are intended to reinforce responsible lending standards and strengthen consumer protections, ultimately making the real estate market more stable and transparent.
