Data released by the National Bank of Georgia shows that mortgage lending activity in Georgia showed renewed momentum in November 2025. Banks issued 4,458 new mortgage loans during the month, with a combined value of GEL 451 million.
Compared to November last year, the number of newly issued mortgages increased by 6%, while their total value jumped by 17%, a gap that reflects rising real estate prices and larger average loan amounts rather than a sharp increase in borrower numbers.
After several months of contraction, mortgage issuance began to recover in September and continued to improve in the final months of the year. However, on a cumulative basis, lending volumes remain lower than in 2024. In the first 11 months of 2025, a total of 46,761 new mortgages were issued which is 4,277 fewer than during the same period last year. Despite this decline in the number of loans, the total value of new mortgages reached GEL 4.2 billion, exceeding last year’s figure.
One of the main drivers behind higher lending volumes has been the growth in average mortgage size. In 2024, the average mortgage loan stood at approximately GEL 76,000 while in 2025 it increased to around GEL 90,000. This trend has been supported by regulatory changes, including the National Bank’s decision to lower the minimum down payment from 15% to 10% starting in February 2025, allowing borrowers to finance up to 90% of a property’s value.
At the same time, borrowing costs continued to edge upward. The average interest rate on GEL-denominated mortgages reached 12.45% in October 2025, marking a 0.65 percentage point increase year-on-year. In November, the average rate for newly issued mortgages stood at 12.33%, up 0.27 percentage points compared to the same month last year, hinting oncontinued tightening in mortgage financing conditions.
