The mortgage lending market in Georgia showed signs of slowdown in early 2025. According to data published by the National Bank of Georgia, between January and May 2025, Georgian banks issued a total of 19,313 new mortgage loans, with a combined value of 1.65 billion GEL.
Compared to the same period in 2024, the number of newly issued loans declined by 15%, highlighting reduced demand or tighter lending conditions. However, the total value of mortgage loans remained unchanged at 1.65 billion GEL, indicating that although fewer loans were granted, larger individual loan amounts were issued on average.
Specifically, the average mortgage loan size during the first five months of 2025 increased to approximately 86,000 GEL, up from 72,000 GEL in the same period last year. This growth reflects a trend toward larger property purchases or higher real estate prices, despite the overall decrease in loan issuance.
To stimulate the market and encourage borrowing, the Financial Stability Committee of the National Bank of Georgia announced a regulatory easing on February 26, 2025. The revised rules allow homebuyers to make a 10% down payment and receive a 90% loan from banks—an adjustment from the previous 15/85 rule, which required borrowers to contribute at least 15% of the property’s value upfront.
Despite this policy shift, lending conditions remain relatively tight due to rising interest rates. As of May 2025, the average interest rate on mortgage loans in Georgian lari (GEL) reached 13.10%, an increase of 1.46 percentage points compared to the same period in 2024. This makes mortgage financing more expensive for consumers, potentially contributing to the decline in loan issuance.
