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How to buy an apartment in Georgia with instalments: developer plan + mortgage

Xellity · March 2026 · 5 min read

⚡Short answer if you prefer not to read everything

While a building is under construction, Georgian banks will not issue a mortgage. This is the rule, not an exception.

The developer sells you the apartment on an instalment plan right now: you pay small amounts throughout construction, no bank, no interest.

When the building is complete and receives its status, you go to the partner bank and take a mortgage for the remaining amount.

Example: $100,000 apartment → first payment $1,500 → then $450/mo × 30 months → building ready → mortgage for $85,000.

In Georgia, banks do not issue mortgages while a building is under construction. But developers have found a way to make purchasing accessible right now - through instalment plans for the down payment during the construction phase. Here is how it works in practice.

Why can't you get a mortgage on a building under construction?

In Georgia, banks only issue mortgages for completed properties. While a building is under construction, the apartment cannot serve as collateral, so the bank cannot approve a loan. This means the buyer must wait until construction is finished to apply for a mortgage.

However, prices during construction are significantly lower than after completion. The difference can be 15-25%. It's a paradox: buying a new apartment in Tbilisi from a developer is most profitable right now, but the bank won't lend until the building is ready.

This is why most new developments in Tbilisi are sold under the instalment + mortgage scheme. It's standard practice in Georgia's real estate market - and it makes it possible to buy an apartment in Tbilisi on instalments today, without waiting for construction to finish.

Browse apartments from developers in Tbilisi and other Georgian cities - filter by budget and instalment conditionsView apartments →

💡 What the National Bank of Georgia says: A mortgage on an under-construction property is technically possible — but only if the bank reserves the full loan amount until construction is complete and does not transfer it to the developer. The developer must also contribute at least 30% of their own equity to the project. This scheme is more complex and rarely used — which is why the developer instalment plan became the market standard.

🛡 Buyer protection under the law

Under National Bank of Georgia regulations, if the developer fails to complete construction for any reason, your obligations to the bank must transfer fully to the developer. This makes purchasing at the construction stage significantly safer than it may seem at first glance.

The solution: developers offer instalment plans for the down payment throughout the construction period. You gradually accumulate the down payment, and when the building is completed, the partner bank immediately processes your mortgage.

How the scheme works: instalments + mortgage

Let's take a specific example. You've chosen a $100,000 apartment in a new Tbilisi development. For a mortgage, you need a down payment of at least 15%, which is $15,000. The developer offers you an instalment plan for exactly this amount.

First payment - $1,500

You pay 10% of the down payment when signing the contract. This reserves the apartment for you.

Monthly payments - $450/mo

The remaining $13,500 is divided by the number of months until completion. For example, if there are 30 months left: $13,500 ÷ 30 = $450 per month.

Building completed - mortgage approved

By the time of completion, you've accumulated the $15,000 down payment. The developer's partner bank processes a mortgage for the remaining $85,000. You get the keys.

Example: $100,000 apartment

Phase 1 · Developer

$450/mo

30 mo · $15,000 total

→

Phase 2 · Bank

~$590/mo

180 mo · 9.5% annually

* Mortgage rate is approximate, depends on bank and conditions

Why is this beneficial?

The main advantage is that you lock in the price at an early construction stage. A new apartment in Tbilisi worth $100,000 today may cost $120,000-$125,000 after completion. Your monthly payment to the developer is comparable to rent, but you're actually investing in your own property.

Second benefit - zero interest. The developer's instalment plan is interest-free. You pay exactly the amount stated in the contract, with no markups or hidden fees.

Third benefit - smooth transition to mortgage. The developer's partner bank already knows about your property, making the mortgage approval process faster and simpler.

Instalment Calculator

Apartment price ($)

Down payment (%)

Construction period (months)

First payment (% of down payment)

Down payment$15,000

First payment$1,500

Remaining instalment$13,500

Monthly payment to developer$450/mo

Mortgage amount after completion$85,000

* Calculation is approximate. Contact us for exact terms

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