Georgia’s mortgage lending has accelerated as interest rates on long-term loans have declined, according to the National Bank of Georgia. In August, the annual interest rate on mortgage loans fell by 1.7 percentage points to 11.41%.
Official data show that in the first eight months of 2026, Georgia’s mortgage loan portfolio grew by 47% to GEL 4.1 billion. Banks issued 39,714 new mortgages during the period, a 22% increase year-on-year.
Radius Construction confirms the trend, reporting that the share of buyers financing purchases through bank loans in its ongoing projects has risen from around 20% to 25%. The company’s founder, Giorgi Bakradze, said lower borrowing costs are encouraging more customers to purchase property in buildings under construction.
Meanwhile, interest rates on short-term loans have edged up. Consumer loan rates exceeded 18% in August, while the National Bank expects global interest rate trends to gradually tighten domestic foreign-currency lending conditions. The average annual market rate on foreign-currency loans stood at 9.31% in August, nearly unchanged from a year earlier.
