Buying Apartments on Installment in Tbilisi — Why Buyers Are Moving Away from Banks

One of the most interesting and under-discussed trends in Tbilisi’s 2025 real estate market is the growing number of buyers who are no longer financing their homes through banks. In many transactions today, banks are not involved at all — purchases are made directly from developers via internal installment plans. This approach is especially widespread in the primary market, where many apartments in 2025 projects have already been sold using this method (source: Galt & Taggart).

This shift in demand is no coincidence. Getting a mortgage in Georgia often requires stable income, a documented employment history, and strict approval procedures. Commercial banks typically demand a minimum 20% down payment, annual interest rates of 10–13%, and a multi-step approval process. Many buyers — particularly the self-employed, foreigners, or those with informal income — are unable to meet these requirements.

In response, developers have started offering an alternative: internal installment plans, often without interest or bank involvement, and with flexible payment schedules. These offers depend on the developer’s financial capacity and often allow buyers to pay gradually until construction is completed or shortly after. According to Galt & Taggart’s latest survey, the majority of developer sales in Q1 2025 used this model.

Online platforms like Korter.ge show that in many new developments — in Didi Dighomi, Saburtalo, Gldani and beyond — internal installments of 12 to 36 months are now standard. Competition in the market is also pushing developers to make terms even more attractive and accessible.

But the system is not without risks. Buyers who pay large sums upfront for an unfinished apartment may be vulnerable if a project is delayed or the developer fails to meet obligations. Unlike banks, where guarantees and collateral are formally regulated, these private agreements are often less structured. Still, many buyers are willing to accept the risks because this model offers a real path to ownership that traditional mortgages may not.

Interestingly, the trend also includes foreign buyers, who often don’t have access to local bank loans but can still buy property through developer-based financing. Such deals have increased in recent years, showing a clear shift in how the market operates.

Overall, Tbilisi’s real estate market is changing. Banks, which once dominated financing, are slowly losing ground to developer-led installment plans. This shift may require new regulations and better buyer protection mechanisms. But for many people, especially first-time homeowners, this model is becoming the most realistic way to own property.