What's More Profitable in Batumi: Bank Mortgage or Developer Installment Plan

Developers use this instrument as an alternative to expensive project financing. Essentially, you finance the construction, and in return receive a simplified registration process without excessive paperwork.

New builds in Batumi from developers in the overwhelming majority of cases (around 90%) follow this transaction structure. In 2026, the standard entry threshold—down payment (PV)—is 30%. In premium-class projects on the first line, it can reach 50%. The remaining amount is divided into equal installments over the construction period, typically 24–36 months.

However, there's an important nuance rarely mentioned in promotional brochures. There's a concept of "list price" versus "100% payment price." Often, the installment plan for an apartment in Batumi is already built into the base price per square meter. With full upfront payment, an investor can receive a discount of 10–15%. Mathematically, this means the "interest-free" installment plan actually costs you those same 10–15% in lost savings.

This instrument is beneficial in two specific cases. First, if you lack documented official income to pass bank compliance checks. Second, if you're planning a short-term speculative strategy. In this case, you pay only 30–40% of the cost, but profit from the appreciation of the asset's full price when reselling, using financial leverage.

The situation with bank financing for non-residents has become more complex but remains viable for professional market participants. Mortgages for foreigners in Georgia are actively issued, though borrower scoring now includes more thorough verification of fund origins (AML procedures).

Key lending parameters currently look like this. Loans to foreigners are issued primarily in US dollars or euros. Lari lending is available only to residents with confirmed income in the national currency. Loan terms can reach 10–15 years, significantly reducing monthly debt burden compared to installment plans.

Banks typically cover no more than 50–60% of the property's appraised value (LTV). Assessment is conducted by an independent expert accredited by the bank. It's important to note that appraised value may be lower than market purchase price, requiring an increase in your down payment. Mortgage interest rates in Georgia stay in the 9–13% annual range in foreign currency. Rates are often floating, tied to the refinancing rate or LIBOR/SOFR indices.

To understand the difference, let's examine purchasing a standard liquid studio apartment valued at $60,000.

Choosing a developer installment plan requires a down payment of approximately $18,000 (30%). You'll pay the remaining $42,000 over 2–3 years (during construction). This means your monthly payment will be $1,100 to $1,700. This is substantial budget pressure that cannot be offset by rental income, as the building is still under construction. You receive ownership rights only after paying the full amount.

With a bank mortgage, the down payment is higher—approximately $24,000–$30,000 (40–50%), as the bank hedges its risks. However, the loan term stretches to 10 years. Monthly payments at roughly 10–11% interest will be approximately $450–$550. The key advantage here—you become the owner immediately (with bank encumbrance). If the property is ready or near completion, you can bring in tenants, and rental income ($600–800 in season) will fully or partially cover loan payments.

Many investors try to buy an apartment in Batumi on installment or secure financing directly, believing they're saving on commission. This is a fundamental mistake. In Georgia, the seller (developer or owner) always pays the agency commission, so our selection and support services are free for buyers.

Going solo exposes you to several hidden risks.

First, illiquid inventory. Developer sales departments have quotas for specific units ("risers"). They'll offer what the company needs to sell now, not what will appreciate. We know the real situation: where a neighboring hotel wall will block the view in a year, and where park development is planned.

Second, contractual traps. Contracts often contain harsh penalty clauses for payment delays, up to contract termination without fund return. We negotiate favorable terms and customized payment schedules for clients, such as quarterly or semi-annual payments instead of monthly.

Third, self-filing for mortgages often ends in rejection due to incorrectly completed applications or missing documentation. We guide clients through partner channels in banks, knowing specific credit committee requirements for non-residents.