The Georgian mortgage market has faced a slight dip, with new mortgage loan volumes declining in December 2024. According to recent data, Georgian commercial banks issued GEL 360 million in mortgage loans, marking a 7% decrease from November and a 14% drop compared to December 2023.
Despite the slowdown at year’s end, the sector saw a strong performance throughout 2024, issuing a total of GEL 4.2 billion in new mortgage loans. This represents a 12% increase compared to the previous year, demonstrating resilience in the market.
Year-End Slowdown Reflects Seasonal Trends
The December decline is not unusual for the mortgage market, which typically experiences seasonal fluctuations. The end of the year often leads to a slowdown in borrowing activity as individuals and businesses tend to take a more cautious approach to financial commitments during the holiday season.
Although December’s numbers were lower than expected, the overall trends throughout the year tell a different story. Throughout 2024, growth was seen every month, except for January and December, underscoring the generally positive outlook for the mortgage market in Georgia.
A Year of Growth Despite December’s Dip
Looking at the bigger picture, the year saw a steady increase in new mortgage loans, with the sector witnessing a 12% year-on-year growth. This steady rise, with the exception of the final month, reflects an ongoing demand for housing and financial support, particularly as more individuals look to secure their homes amid economic shifts.
In fact, the total volume of new mortgage loans issued in 2024 suggests that the market remains in a growth phase, buoyed by factors such as low interest rates and economic stability earlier in the year. While December’s decline is notable, it’s part of a broader pattern seen in other sectors as well, as many industries wind down at the close of the year.
Positive Outlook for 2025
Looking ahead to 2025, experts remain optimistic about the mortgage sector in Georgia. Despite December’s dip, the long-term trend suggests that the market will continue to expand, especially with more affordable housing options and improved economic conditions in the coming months.
