Batumi Real Estate Investment Market Overview
Key Metrics for 2025
Market Statistics:
- Property price growth: 8–12% per year
- Rental yields: 8–15% per annum
- Average payback period: 7–12 years
- Occupancy rates: 75–90%
- Annual tourist flow: 2.8 million visitors
Demand Structure:
- Russian investors: 45%
- Local buyers: 30%
- European investors: 15%
- Others: 10%
Price Dynamics by Year
| Year | Avg. Price per m² | Growth vs Previous Year |
|--------------|-------------------|-------------------------|
| 2022 | $950 | +5% |
| 2023 | $1,050 | +10.5% |
| 2024 | $1,160 | +10.5% |
| 2025 | $1,270 | +9.5% |
| 2026 (forecast) | $1,390 | +9.5% |
Yield Analysis by Property Type
**Studio Apartments — Highest ROI**
Features:
- Size: 25–35 m²
- Purchase price: $25,000–45,000
- Monthly rent: $350–550
- Annual yield: 12–15%
Example:
- Purchase: $35,000
- Monthly rent: $450
- Annual income: $5,400
- Yield: 15.4%
Pros: highest yield, fast leasing, low maintenance, very popular with tourists
Cons: high tenant turnover, seasonality, faster wear and tear
**1-Bedroom Apartments — Stability**
Features:
- Size: 35–55 m²
- Purchase price: $45,000–75,000
- Monthly rent: $500–800
- Annual yield: 10–13%
Example:
- Purchase: $60,000
- Monthly rent: $650
- Annual income: $7,800
- Yield: 13%
Key points: universal appeal, year-round demand, reasonable operating costs
**2-Bedroom Apartments — Family Segment**
Features:
- Size: 55–85 m²
- Purchase price: $75,000–130,000
- Monthly rent: $750–1,200
- Annual yield: 8–12%
Example:
- Purchase: $100,000
- Monthly rent: $950
- Annual income: $11,400
- Yield: 11.4%
Target audience: families with children, long-term tenants, expats & professionals
**Luxury Properties — Prestige & Reliability**
Features:
- Size: 80+ m²
- Purchase price: $150,000+
- Monthly rent: $1,200–2,500
- Annual yield: 6–10%
Key points: lower yield but stable, solvent tenants; fewer maintenance issues; highest capital appreciation potential
Short-Term vs Long-Term Rental Comparison
**Short-Term (Daily) Rental**
Yield: 12–18% per year
Pros: maximum income, flexibility, ability to adjust rates
Cons: active management required, high cleaning/laundry costs, seasonality, competition with hotels
Typical monthly expenses:
- Utilities: $50–80
- Cleaning & linen: $150–200
- Platform commissions: 10–15%
- Taxes: 20% of profit
**Long-Term Rental**
Yield: 8–12% per year
Pros: stable income, minimal management, less wear, predictable cash flow
Cons: lower yield, risk of non-payment, harder tenant replacement
Typical monthly expenses:
- Utilities: $30–50
- Management fee: $20–40
- Repairs & maintenance: $300–500 per year
District Ranking by Investment Attractiveness
| District | Yield | Liquidity | Price Growth | Rating |
|---------------------|-------------|--------------|----------------|----------|
| City Center | 12–15% | ⭐⭐⭐⭐⭐ | 10–15% | 9.5/10 |
| New Boulevard | 10–13% | ⭐⭐⭐⭐⭐ | 8–12% | 9.2/10 |
| Kakhaberi | 8–11% | ⭐⭐⭐⭐ | 12–18% | 8.7/10 |
| Coastal Area | 11–15% | ⭐⭐⭐⭐ | 8–12% | 8.5/10 |
| Airport Area | 6–9% | ⭐⭐⭐ | 10–15% | 7.2/10 |
| Gonio | 7–10% | ⭐⭐⭐ | 6–10% | 7.0/10 |
Detailed Analysis of Top Districts
Historic Center: max yield & tourism, but high entry price and noise → best for experienced short-term investors
New Boulevard: stability, infrastructure, liquidity → ideal for conservative investors
Kakhaberi: affordable entry, highest future growth → perfect for long-term horizon
Taxation for Non-Resident Investors
Small Business Status (most popular):
- Turnover ≤ 30,000 GEL/year → 1% of revenue
- Turnover > 30,000 GEL → 20% of net profit
- Tax return deadline: April 15
Regular taxation:
- Income tax on rent: 20%
- Capital gains tax (sale within 2 years): 20%
- Annual property tax: 0.05–1% of cadastral value
Legal Tax Optimization Methods
1. Register as small business
2. Deduct maintenance & repair costs
3. Depreciate furniture and appliances
4. VAT refund on commercial purchases
Practical example:
Rental income: $10,000/year
Expenses (utilities, repairs): $2,000
Taxable base: $8,000
Tax (20%): $1,600
Net profit: $6,400
Property Management Options
Self-Management
Pros: maximum profit, full control
Cons: time-intensive, language barrier, need to be in Batumi
Cost: 0% commission (only your time)
Professional Management Companies
Services: tenant search, rent collection, maintenance, cleaning, legal support
Cost:
- Long-term: 8–12% of income
- Short-term: 15–25% of income
Top management companies:
1. Batumi Property Management – full service
2. Orbi Residence Services – for Orbi complexes
3. Alliance Property Care – premium service
Online Platforms
Short-term: Booking.com • Airbnb • MyPlace.ge
Long-term: SS.ge • Korter.ge • Place.ge
Risks & Mitigation
Main risks: drop in rental demand, price correction, increased competition, tenant issues, legislative changes
Mitigation strategies:
- Diversification (multiple units, districts, rental types)
- Insurance (property, loss of rent, liability)
- Work with vetted management companies and lawyers
Investment Strategies
1. Buy & Hold – stable passive income + capital growth
2. Fix & Flip – 15–30% profit in 6–12 months
3. Mixed strategy – buy off-plan → rent → sell in 3–5 years at peak price
Practical Steps to Start
Step 1: Set budget (minimum $30–40k + 20% reserve)
Step 2: Choose strategy and property type
Step 3: Study the market constantly
Step 4: Work only with trusted developers and agencies
Key Selection Criteria
Must-have: prime location, clean title, reliable developer, good layout
Nice-to-have: parking, modern facilities, short-term rental potential, growing district
Conclusion
In 2025, Batumi remains one of the most attractive destinations for preserving and growing capital through real estate.
Key takeaways:
- Annual yields: 8–15% depending on type and strategy
- Price growth: stable 8–12% per year
- Payback period: 7–12 years with proper planning
- Risks: moderate with correct diversification
Best beginner strategy:
1. Buy a 1-bedroom apartment in the Center or New Boulevard
2. Long-term rental via management company
3. Reinvest profits into additional units
Core principles of success:
- Invest only free capital
- Diversify risks
- Stay updated on the local market
- Work with professionals
- Think long-term
When these rules are followed, Batumi real estate delivers stable passive income and reliable inflation protection.
Prepared by: real estate investment market analysts
Data current as of: September 2025
Yields calculated based on actual market statistics
