Get custom research and other real estate services

Impact of subsides

1.

Updated: December 11, 2020

From July 2020, the state program "Mortgage Support Mechanism" was launched.

Under the program, it is possible to use a 4% subsidy on the annual mortgage interest rate for five years.

Mortgage subsidy applies only to apartments purchased by developers and is issued for loans not exceeding 200,000 GEL. The maximum period of the mortgage repayment is 240 months.

A total of 5,636 loans were subsidized under the program from July 1 to November 16, with a total volume of approx. GEL 543 million.

THE NUMBER AND VOLUME OF SUBSIDIZED MORTGAGES (MLN, GEL)
Number of Loans
Total Volume of Loans
*November data includes loans issued through November 16
Source: Colliers, Enterprise Georgia

2.

Updated: December 11, 2020

The highest number of loans were subsidized in September. The figure amounted to 1,765 units with the total volume of GEL 169 million.

The average volume of loans varies between 89 thousand to 111 thousand GEL. Based on the above, the subsidy program mainly supports the economy segment of the residential real estate market.

According to the National Bank of Georgia, subsidized loans account for 30-35% of the total mortgage loans issued in July-November 16.

AVERAGE VOLUME OF SUBSIDIZED LOANS PER MONTH (THOUSAND, GEL)
*November data includes loans issued through November 16
Source: Colliers, Enterprise Georgia