Georgian banks issued a total of 32,565 new mortgage loans between January and August 2025, representing a 13.4% decline (5,038 fewer loans) compared to the same period last year, according to the National Bank of Georgia (NBG).
Despite the drop in the number of mortgages, the total value of the mortgage portfolio increased by 3.3%, reaching 2.8 billion GEL, or 90 million GEL higher than last year. The growth is largely attributed to rising real estate prices.
The average mortgage interest rate in August 2025 was 13% in GEL, up 0.98 percentage points from the previous year.
The average loan amount increased to 86,000 GEL from 72,000 GEL in 2024, reflecting higher property values and changes in initial deposit requirements.
To counter the decline in mortgage lending, the NBG reduced the minimum initial deposit from 15% to 10% in February 2025, allowing buyers to finance 90% of the property cost with a loan. Despite this measure, the number of new mortgages has not yet returned to previous levels.
