Nino Absandze, founder of the Georgian Real Estate Agency (GREA), has highlighted the challenges that smaller development companies face in accessing banking resources. Speaking on BMG TV’s “Women’s Narrative,” Absandze assessed the current lending landscape for both individuals and businesses in Georgia’s real estate market.
“Smaller companies have less access to bank resources,” Absandze said. “They often rely on internal installment plans to stimulate sales. Previously, buyers were expected to cover the full cost of a property before completion. Today, payment schedules are more flexible, typically 10% at the start of construction, 20% at completion, and 70% at the end. As a result, development companies turn to banks less frequently and instead offer flexible terms directly to clients.”
According to Absandze, while smaller developers struggle to secure financing, high-income buyers increasingly rely on banks for mortgage loans.
“Getting a mortgage is still difficult. For loans in dollars, the amount must exceed USD 750,000, and for loans in GEL, interest rates have risen due to increasing real estate values. Consequently, wealthier clients are more likely to seek bank financing for their purchases,” she explained.
The situation underscores the growing disparity in access to financial resources between large and small developers, as well as the challenges faced by individuals navigating the mortgage market.
