Batumi Real Estate Investment Market Overview
Key Metrics for 2025
Market Statistics:
- Annual property price growth: 8–12%
- Rental yield: 8–15% per year
- Average payback period: 7–12 years
- Occupancy rate: 75–90%
- Tourist flow: 2.8 million visitors per year
Demand Structure:
- Russian investors: 45%
- Local buyers: 30%
- European investors: 15%
- Other: 10%
Price Dynamics by Year
| Year | Average price per m² | YoY growth |
| 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
Studios — Highest ROI
Characteristics:
- Size: 25–35 m²
- Purchase price: $25,000–45,000
- Rental rate: $350–550/month
- Annual yield: 12–15%
Example calculation:
- Purchase: $35,000
- Monthly rent: $450
- Annual income: $5,400
- Yield: 15.4%
Advantages:
- Highest yield
- Fast leasing
- Low maintenance costs
- Very popular with tourists
Disadvantages:
- High tenant turnover
- Seasonality
- Faster wear and tear
One-Bedroom Apartments — Stability
Characteristics:
- Size: 35–55 m²
- Purchase price: $45,000–75,000
- Rental rate: $500–800/month
- Annual yield: 10–13%
Example:
- Purchase: $60,000
- Monthly rent: $650
- Annual income: $7,800
- Yield: 13%
Features:
- Universal appeal to different tenant types
- Year-round demand
- Optimal maintenance costs
Two-Bedroom Apartments — Family Segment
Characteristics:
- Size: 55–85 m²
- Purchase price: $75,000–130,000
- Rental rate: $750–1,200/month
- 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 and professionals
Luxury Properties — Prestige & Reliability
Characteristics:
- Size: 80+ m²
- Purchase price: $150,000+
- Rental rate: $1,200–2,500/month
- Annual yield: 6–10%
Features:
- Lower yield but higher stability
- Wealthy, reliable tenants
- Lower management hassle
- Strong capital appreciation
Rental Type Comparison
Short-Term Rental (Daily)
Yield: 12–18% per year
Advantages:
- Maximum profitability
- Flexibility of personal use
- Ability to adjust rates
Disadvantages:
- Requires active management
- High cleaning & linen costs
- Seasonality
- Competition with hotels
Typical expenses:
- Utilities: $50–80/month
- Cleaning & linen: $150–200/month
- Platform fees: 10–15%
- Taxes: 20% on profit
Long-Term Rental
Yield: 8–12% per year
Advantages:
- Stable income
- Minimal management effort
- Less wear and tear
- Predictability
Disadvantages:
- Lower yield
- Risk of non-payment
- Harder to change tenants
Typical expenses:
- Utilities: $30–50/month
- Management: $20–40/month
- Repairs & maintenance: $300–500/year
Neighborhood Investment Attractiveness Analysis
District Ranking for Investment
| 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 |
| Seaside 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:
- Pros: highest yield, tourist traffic, prestige
- Cons: high purchase price, noise, wear
- Best for: experienced short-term rental investors
New Boulevard:
- Pros: stability, infrastructure, liquidity
- Cons: high competition, premium pricing
- Best for: conservative investors
Kakhaberi:
- Pros: affordable entry, high growth potential
- Cons: distance from center, developing infrastructure
- Best for: long-term investors
Taxation for Investors
Taxes for Non-Residents
Small Business Status:
- Turnover ≤ 30,000 GEL/year: 1% of turnover
- Turnover > 30,000 GEL: 20% of profit
- Tax return deadline: April 15
Standard taxation:
- Income tax: 20% on rental income
- Capital gains tax: 20% (if owned < 2 years)
- Property tax: 0.05–1% of cadastral value
Legal Tax Optimization Methods
- Register as small business
- Deduct maintenance & repair costs
- Depreciate furniture and appliances
- Reclaim VAT on commercial purchases
Example:
- Gross rental income: $10,000/year
- Expenses: $2,000
- Taxable base: $8,000
- Tax (20%): $1,600
- Net profit: $6,400
Investment Property Management
Self-Management
Pros:
- Maximum profit
- Full control
- Direct tenant contact
Cons:
- Time-intensive
- Language barrier
- Need to be in Batumi
Professional Management Companies
Services:
- Tenant search & screening
- Rent collection
- Maintenance
- Cleaning & linen
- Legal support
Fees:
- Long-term: 8–12% of income
- Short-term: 15–25% of income
Top companies:
- Batumi Property Management – full service
- Orbi Residence Services – for Orbi projects
- Alliance Property Care – premium service
Online Rental Platforms
Short-term:
- Booking.com
- Airbnb
- MyPlace.ge
Long-term:
- SS.ge – largest local platform
- Korter.ge – real estate focused
- Place.ge – universal
Risks and Risk Mitigation
Main Investment Risks
Market risks:
- Drop in rental demand
- Property price decline
- Increased competition
- Economic instability
Operational risks:
- Tenant issues
- Property damage
- Prolonged vacancy
- Rising maintenance costs
Legal risks:
- Tax law changes
- Lease disputes
- Title problems
Risk Mitigation Strategies
Diversification:
- Multiple properties
- Different districts
- Mixed rental types
Insurance:
- Property insurance
- Loss of rent insurance
- Liability insurance
Professional management & legal support
Investment Strategies
"Buy and Hold"
Long-term rental + capital growth
Best for: conservative investors, passive income seekers
"Fix and Flip"
Buy off-plan or distressed → renovate → sell
Potential profit: 15–30% in 6–12 months
Hybrid Strategy (Most Popular)
- Buy at foundation pit stage
- Rent out after completion
- Sell in 3–5 years at higher price
Combines rental income + capital gain
Practical Recommendations
How to Start Investing
- Determine budget (minimum $30–40k + 20% reserve)
- Choose strategy based on time & desired yield
- Study the market thoroughly
- Find the right property with professionals
Property Selection Criteria
Must-have:
- Prime location (near sea or center)
- Good layout
- Developed infrastructure
- Clean title
- Reliable developer
Nice-to-have:
- Parking space
- Modern building amenities
- Short-term rental allowed
- Growing district
Conclusion
Batumi real estate in 2025 remains one of the most attractive investment destinations.
Key takeaways:
- Yield: 8–15% depending on strategy
- Price growth: stable 8–12% annually
- Payback: 7–12 years
- Risks: moderate with proper diversification
Best beginner strategy:
- Buy 1-bedroom in Center or New Boulevard
- Long-term rental via management company
- Reinvest profits into additional properties
Success principles:
- Invest only free capital
- Diversify
- Study the local market
- Work with professionals
- Think long-term
With the right approach, Batumi property delivers stable passive income and strong inflation protection.
Article prepared by: Batumi real estate investment analysts
Data current as of: September 2025
Yields based on real market statistics
