When it comes to of property yields in GeorgiaTbilisi, Batumi and Tbilisi consistently occupy leading positions. These cities offer unique opportunities for investors seeking to maximise the benefits of their investments.

Tbilisi

Tbilisi, as the capital of the country, is not only a cultural and economic centre, but also a place with high rental yields. On average, one can expect a yield of approx. 10-11%However, in some areas the figure is much higher.

• Isani: This neighbourhood is renowned for its accessibility and good infrastructure. Studios here can yield up to 15,4%. For example, buying a flat for €30,727 and renting it out for €394 per month makes it a particularly attractive place to invest.
• Didi Digomi: Here the yields are as high as 13,44%making it one of the best areas for investment in the capital.

Batumi

Batumi is not only a popular resort on the Black Sea coast, but also a city with one of the highest rental yields in Georgia. The average yield here is 12-13%but in some areas it can be much higher.

• Agmashenebeli Street: The studios here are for sale at €29,053 and surrendered for €492 per monthwhich ensures profitability 20,34%. This makes the area one of the most profitable.
• Old Batumi and the airport area: The yield here is 16,22% и 17,65% respectively, due to the constant flow of tourists and developed infrastructure.

Other regions

While Tbilisi and Batumi are the leaders, other regions also offer interesting opportunities for investors.

• Kutaisi: It is the third largest city in Georgia, where the average yield is 9-10%. Here you can find one-bedroom apartments that bring up to . 11,20% income.
• Smaller cities: Such as Sighnakhi and Borjomi offer yields at the level of 8-10%. These cities are more seasonal and tourist orientated, which can be a plus or a minus depending on the rental strategy.

All in all, if you're looking for top regions by rental incomeTbilisi and Batumi remain at the top of the list, but other Georgian cities also offer good opportunities for getting a passive income. Investors should scrutinise the market and choose a strategy that best suits their goals and expectations.

Rental market overview

Georgia is a real find for those looking for a stable property rental income. The country attracts investors from all over the world due to its high returns. According to Global Property GuideIn 2022, the average rental yield of residential property in Georgia has reached ~10,73%. This already seemed unbelievable, but by 2024-2025 this figure has risen to a 12%which put Georgia in the world leaders in terms of profitability.

Why Georgia?

• High profitability: While in other countries yields range from 5-9%, Georgia offers more favourable conditions.
• Sustained demand: After a surge in 2023-24, renting remained expensive due to the influx of migrants and tourists.
• Dynamic market: Although current dynamics show the beginning of a moderate decline in yields, prices are stabilising and demand is easing slightly.

Imagine this: you bought a small flat in Tbilisi for €30,000. By renting it out, you can count on an income of the order of €400 per monthwhich amounts to €4800 per year. After deducting all expenses, such as taxes and utilities, your net income could be approx. €3800 per yearwhat gives yield of ~12.7%.

Georgia remains attractive to those seeking to passive income. In 2024, the growth of rental and property prices was driven by migration and an increase in the number of tourists. Now the market is stabilising, but still remains profitable for investors.

Thus, if you're wondering, where to invest in Georgia, the property rental market is a great choice. Whether you are interested in Georgian seaside property or in the capital, yields remain high and this makes the market an extremely attractive investment.

Long-term and short-term leases

The choice between long-term и short-term lease - this is a key question for anyone thinking about Georgia property investments. Each strategy has its pros and cons, and it's important to understand which one is better suited to your goals and expectations.

Long-term lease

Long-term lease - is a stable strategy that suits those who want to minimise risk and have a predictable income.

• Yield: On average, it is 8-10% p.a.. In some cases may exceed 10%, especially in sought-after areas.
  Advantages:
• Stable income: You receive a fixed monthly income, which allows you to plan your budget.
• Less hassle: Long-term tenants usually stay for a year or more, which reduces the frequency of tenant turnover and therefore cleaning and repair costs.
  Disadvantages:
• Fixed terms: Long-term contracts may limit the ability to change rents in response to market changes.
• Empty periods: If a tenant leaves, it may take time to find a new tenant.

Short-term leases

Short-term leasesespecially through platforms such as Airbnb, can generate higher revenues but require more effort.

• Yield: In seasonal months and popular locations, yields can be as follows 12-18% on a yearly basis.
  Advantages:
• Flexible pricing: The ability to change prices in response to demand maximises revenue.
• High utilisation: In tourist areas such as Batumi, flats are often rented out with no down time.
  Disadvantages:
• Large amount of work: Requires ongoing management including cleaning, reception and marketing.
• Unpredictability: Seasonality and possible cancellations of bookings can affect revenues.

Comparison table

Type of lease	Yield	Advantages	Disadvantages
Long-term lease	~8-10%	Stable income, less hassle	Fixed terms, void periods
Short-term leases	12-18%	Flexible pricing, high utilisation	High volume of work, unpredictability

If you're planning where to invest in GeorgiaIt is worth considering your personal preferences and willingness to manage the property. For those who prefer a more relaxed approach, a long-term lease may be ideal. However, if you are willing to invest more time and effort, short-term rentals may offer higher returns.

Factors affecting rental income

When investing in Georgian property rentalIt is important to consider the many factors that can affect your profitability. Understanding these aspects will help you make more informed choices and maximise your passive income Georgia.

Location of accommodation

Location - is a key factor in determining how quickly and profitably you can rent out your property.

• City centre: In large cities such as Tbilisi and Batumi, property in the centre is always in demand. For example, flats on Agmashenebeli Street in Batumi can generate yields of up to 20,34% because of its proximity to the sea and developed infrastructure.
• Tourist areas: In Batumi, property by the sea, in areas such as the Old Town, also brings high returns due to the constant flow of tourists.

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Property type

Property type also plays an important role in shaping profitability.

• New buildings и furnished flats: Modern apartments with quality repairs and appliances are more expensive to rent. For example, studios in new buildings in Tbilisi can bring profitability of up to 15,4%.
• Aparthotels: These properties, especially in tourist areas, often generate more income due to the flexibility of renting.

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Floor and view from the window

Floor area и window view can also affect the attractiveness of your property.

• Upper floors with sea or mountain views: These flats are more expensive to rent as they offer unique views and a quieter environment.
• Ground floors: Usually less sought after, especially if there is a lack of a nice view.

Condition and quality of repairs

Housing condition can have a significant impact on the rental rate.

• Fresh renovation and quality furniture: Such investments increase rents and reduce the risk of downtime.
• Outdated look or poor quality repair: This may discourage potential tenants and reduce profitability.

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Infrastructure

Existence of a developed infrastructures near your property increases its appeal.

• Transport, schools, universities, shopping centres: Proximity to these facilities makes your property more attractive to tenants, which helps increase yields.

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Seasonality and type of lease

Seasonality plays an important role, especially in resort towns.

• Summer period in Batumi: At this time, demand and rental prices can double, allowing for a significant increase in revenues.

Understanding these factors will help you better navigate the market and make your flat payback Georgia as favourable as possible. Considering all of the above, you will be able to choose the most suitable strategy for your investment.

Calculation of lessor's income and expenses

When you decide to invest in Georgian propertyIt is important not only to estimate potential income, but also to carefully consider all expenses in order to understand the actual profitability.

Income tax

The first thing to consider is income taxwhich is 5% on the rental income received. This tax applies to residential premises and is mandatory for all landlords.

Agency fee

If you decide to use an agency to find tenants, be prepared for additional costs. Agency fee usually amounts to 5-10% annual income. However, if you prefer to look for tenants on your own, you can save money on this point.

Utilities and operating expenses

Utility payments and operating costs depend on the area and region. On average in Georgia, the cost of housing and utilities is as follows $70-100 per month. For a flat of 85 m² this could amount to approx. $75 monthly.

Other expenses

Don't forget about the small expenses that may arise in the process of letting a property:

• Minor repairs and refurbishment of furniture: These costs may vary but should be taken into account when planning the budget.
• Property insurance: It is advisable to consider home liability insurance to minimise the risks.

Calculation example

Let's look at an example to see how your income and expenses might stack up.

Let's say you're renting a flat for $400 per monthwhich amounts to $4800 per year. After deducting 5% taxyou're left with $4560. Then we subtract agency fees (e.g. 5%, which is. $240) и utility costs (approx. $600 per year). As a result, your net income will be approx. $3720 per year.

Considering that you bought the flat for. $30,000your real annual yield will be about 12,4% ($3720 / $30,000).

Understanding all of these factors will help you more accurately assess the ROI of real estate in Georgia and make an informed investment decision. By taking into account all income and expenses, you will be able to manage your property optimally and receive a stable income passive income.

Practical advice for property owners

If you decide to invest in Georgian propertyfollow these practical tips to maximise your own profitability and minimise the risks.

Quality renovation and furniture

Investing in modern renovation and comfortable furniture is not just an expense, but an investment in your future profits. Newly renovated flats with quality furnishings usually rent faster and at a higher price.

• Tip: Pay attention to detail - stylish design and functional furniture can greatly increase the appeal of your property.

Professional photos

The first impression of your flat is created through the photos in the advert. High-quality pictures can significantly increase the interest of potential tenants.

• Tip: Hire a professional photographer to take interior shots. This investment will quickly pay for itself through increased views and applications.

Up-to-date prices and flexibility

Analyse the market regularly to adjust your rental rates to current trends. Flexibility in pricing will help you stay competitive.

• Tip: Offer seasonal discounts or surcharges based on demand. This will help you maintain high utilisation.

Platforms and treaties

Book your accommodation officially and register the lease agreements with the tax office. This will protect you from possible legal problems.

• Tip: Post listings on popular platforms such as Airbnb and Booking and keep an eye on their requirements for guest safety and comfort.

Insurance

Consider insurance against non-payment and damage. In some cases, 'guaranteed rental' programmes are available which can significantly reduce your risks.

• Tip: Research different insurance quotes and choose the most suitable one for your property.

Checklist for surrender

Before renting out the flat, make sure that everything is ready for the tenants to live comfortably. Check the documents, equipment and prepare a sample rental agreement.

• Tip: Require a bond to protect yourself against possible property damage.

Photo of the flat: a quality interior image further enhances credibility and increases the number of potential tenants.

By following these tips, you will be able to significantly increase your payback flats in Georgia and enjoy a stable passive income.

Rental market forecasts and dynamics

The rental market in Georgia is experiencing interesting times. After rapid growth in 2022-2023, when rental yields reached record highs, we are seeing a gradual stabilisation.

Current dynamics

At the end of 2024, the market started to show signs of cooling down. In Tbilisi, rental yields totalled 9,6%that on 1.2 percentage points lower than in the previous year. This indicates that rental price growth is slowing downbut remains at a fairly high level.

• Example: In December 2024, the average rental price in Tbilisi was \$11,1 per m²that on 10% below. compared to the previous year.

Trends in Batumi

In Batumi the situation is similar. By the autumn of 2024, the yield has decreased to 9%This is due to market saturation and increased supply. This is due to market saturation and increased supply.

• Analysts note that despite the decline, performance remains strong by historical standards.

Conclusions

Despite the current changes, property investment Georgia remain attractive. The country continues to offer favourable conditions for those looking for a stable passive income. It is important to continue to monitor trends and adapt your strategy to remain competitive in the market.

In conclusion, the rental market in Georgia, although stabilising, still offers a high profitability and growth opportunities. This makes it attractive to investors who are looking to where it is profitable to rent accommodation in Georgia.

Our company will be pleased to help you find the perfect investment property in Georgia. We take into account all your wishes and offer only the best options in the most promising regions. Leave an application on our website and our specialists will contact you for more detailed consultation.