Investment · honest maths

Real Rental Yields in Batumi: the Honest Calculation, Without the "12% a Year"

Updated 6 August 2026 · 7 min read · By Dmitry Morev, real estate agent in Batumi

Developer brochures promise "12%+ guaranteed". My experience managing rentals and closing dozens of investment deals says: the honest range for Batumi is 6–8% net per year. Here's the full maths so you can check any property yourself.

Why "guaranteed 12%" is a red flag

The pretty number is usually produced three ways: revenue is quoted before the management fee, August occupancy is passed off as the whole year, and utilities plus tax quietly disappear. Sometimes the "guarantee" honestly runs for a year or two — funded by the premium you overpaid at purchase.

The honest formula

Net annual income = nights occupied × nightly rate − management fee − utilities & service charge − 5% tax. Let's run a live example.

Example: a $46,000 studio on Khimshiashvili

What actually moves the yield

• Seasonality. July–August deliver up to half the annual revenue; May–June, September–October and New Year the other half; winter is nearly empty. 50–60% annual occupancy is a good result, 70%+ an exception;
• Location. The seafront and the Old Town rent in winter too (business travellers, winterers) — more on each district's character;
• The management company. Their 15–25% isn't a "waste" — it's occupancy, cleaning and reviews. An unmanaged flat earns noticeably less while you're away;
• The 5% tax is Georgia's pleasant constant: register, pay on turnover, no licences for Airbnb.

The second half of the return: price growth

Rent isn't the only earner. Off-plan bought at $900–1,100/m² in Gonio typically gains 20–35% by handover. Sell after two years of ownership and there's no capital gains tax — and you can exit as remotely as you entered. Rent plus growth over a 3–5 year horizon can produce double-digit annual returns — but that's the result of strategy, not a brochure "guarantee".

Pre-purchase checklist for investors

• Ask for the real rental history of similar units in the same complex — facts, not projections;
• Confirm the service charge ($0.5–1/m² per month) and what it covers;
• Check what will rise on the neighbouring plots — the "sea view" must survive the next construction site;
• Calculate yield on the full outlay: price + renovation + furniture + appliances.