Mortgage Lending in Georgia Rose by 47%

In January–August 2026, the volume of mortgages issued in Georgia increased by 47% compared with the same period in 2025, reaching 4.1 billion lari, the National Bank reports. The number of contracts signed rose by 22%, while the average loan amount reached ₾104,000. Interest rates on housing loans denominated in the national currency declined.

Almost 40,000 Housing Loans

Over the eight months, Georgian banks issued 39,714 housing loans worth 4.1 billion lari. Compared with January–August 2025, the number of contracts increased by 22%, while the volume of lending rose by 47%.

The average mortgage amount climbed 20.6% over the year, from ₾86,200 to ₾104,000. Rising real estate prices and the financing terms available for apartment purchases may have contributed to this trend.

Mortgages in Georgia: January–August 2026

Mortgage Interest Rates in Georgia

In August, the average interest rate on mortgages in lari fell to 11.19%. This was a decline of 1.9 percentage points over the year. Banks issued foreign-currency housing loans at an average rate of 7.7%, the National Bank notes.

The difference in interest rates is not the only consideration when choosing a loan currency. Since the end of 2025, the US dollar has weakened against the lari, with the exchange rate falling from ₾2.6951 to ₾2.5982 as of October 19, 2026. For borrowers earning in the national currency, this reduces the cost of servicing a dollar-denominated mortgage. If the trend reverses, monthly repayments could rise.

In September, the regulator kept its monetary policy rate at 8.25%. Mortgage costs also depend on each bank’s terms, including the repayment period, the value of the collateral and the borrower’s income.

New Income Requirements at Georgian Banks

Housing loans in Georgia will be issued under revised debt-service-to-income thresholds from 2027. The National Bank’s September 30 decision provides for a phased increase: from February 1, the 25% income cap will apply to borrowers earning less than 2,000 lari, and from September 1, to those earning less than 2,500 lari.

Currently, that limit applies to people with net monthly income below ₾1,500. At higher earnings, payments on lari-denominated loans can reach 50% of income. The regulatory change will reduce the maximum permissible debt burden for some property buyers.

The down payment on a mortgage in lari can start at 10% of the collateral value: the National Bank allows lending of up to 90%. For foreign-currency loans, the limit is 70%. The down-payment requirement was relaxed in February 2025; actual lending terms remain at the bank’s discretion.

Mortgage Debt in Georgia: Up 16%

By the end of August, outstanding mortgage debt in Georgia had reached ₾14.6 billion. Banks were servicing about 176,000 such contracts. The portfolio grew by 16% over the year, excluding exchange-rate effects, and its share of all loans reached 19.1%, according to the National Bank’s review.

The total volume of loans in Georgia reached ₾76.45 billion at the end of August (+14.8%). Business financing accounted for most of the growth, while housing loans retained a substantial share of banks’ portfolios.

Analysts at International Investment note that lower interest rates do not necessarily translate into smaller monthly costs for buyers. The average mortgage has grown significantly, and savings from cheaper financing may be eroded by higher apartment prices.

The changes planned for 2027 may restrain demand among borrowers with incomes between ₾1,500 and ₾2,500. For some in this group, banks may approve smaller amounts than under the current rules. Buyers would then need to increase their down payment or choose a less expensive apartment.

In the new-build market, this will make the total price of an apartment increasingly important. Stricter income requirements could shift demand toward more compact layouts. Within the affordable housing segment, properties with lower total prices may gain an advantage.