Levan Diasamidze, Director of real estate developer Ibercompany, says in-house installment plans do not currently pose a significant risk to Georgia's property market. Speaking to BMG, he noted that nearly all apartments sold by the company through installment schemes have ultimately been converted into bank mortgage loans.
According to Diasamidze, the default rate on Ibercompany's installment portfolio is around 1%, making it negligible for both developers and buyers. He added that installment sales remain particularly popular during the early stages of projects, when buyers cannot yet secure mortgages because the property is not fully completed or documented. In some projects, up to 90% of early sales are made through in-house installment plans.
As projects near completion, however, mortgage financing and direct payments become more common. At Ibercompany, around 60–70% of current sales are financed through mortgages or direct payments, while the remaining 30% are made via in-house installment plans, reflecting the advanced stage of the company's projects.
Diasamidze stressed that while installment financing does not currently appear to be a systemic risk, the market lacks comprehensive data on the overall size of developers' installment portfolios. He called for better tracking of installment agreements and the registration of preliminary sales contracts, arguing that such data is essential for assessing potential risks in a sector that accounts for roughly 10% of Georgia's economy.
