Property payback in Georgia (ROI): a full breakdown of costs and net profit

Investors from around the world choose Georgia for its friendly taxes, easy purchase rules for foreigners and strong tourist flow. But the key question for any investor is how much an apartment really earns after all costs. Here is how gross yield differs from net, which costs are most often forgotten, and how to calculate payback for a Batumi apartment — in an optimistic scenario and on market data.

Gross and net yield

Developer presentations usually quote gross yield (gross ROI):

Gross yield = annual rental income ÷ purchase price × 100%

Example: an apartment bought for $60,000 lets for $600 a month, or $7,200 a year. Gross yield is 12%.

But this ignores running costs. The objective measure is net yield (net ROI):

Net yield = (income − costs − taxes) ÷ total investment (apartment + renovation + furniture) × 100%

Global Property Guide estimates that net yields in Georgia are usually 1.5–2 percentage points below gross, and the gap can be wider for managed short-term letting.

Costs to include

1. Rental income tax — 5%

Individuals registered as landlords on rs.ge pay 5% on residential rent. Whether the preferential regime applies to short-term letting is interpreted differently; see our article on taxes for non-residents.

2. Management fee

If you do not live in Georgia, a management company runs the apartment. Local companies typically take around 20–25% of revenue. In branded projects the hotel operator takes more and owners often receive 50–70% of income (for example, 60% at Metropol Oval and 70% at OKTO Art House), but nightly rates and occupancy are usually higher.

3. Booking platform fees

This one is often forgotten. Since 2026 Airbnb charges hosts a single 15.5% fee, and Booking.com's commission is comparable. Sometimes the management company pays it from its share — check the contract.

4. Service charges and utilities

• Building service charge (security, cleaning, lifts, pool) — typically $0.5–1.5 per m² a month; OKTO Art House, for example, quotes $1.20.
• Electricity, water, internet, gas — paid by the owner for short lets, roughly $50–80 a month; by the tenant for long lets.

5. Wear and tear

Replacing textiles and tableware, deep cleaning and minor plumbing and electrical repairs — allow 3–5% of income.

Worked example: a Batumi studio

A 35 m² turnkey studio on New Boulevard for $65,000, plus about $100 for registration at the House of Justice — total investment $65,100. Strategy: nightly lets in summer (June–September, 120 days), monthly lets for the other 8 months.

We model two scenarios. Optimistic: 80% summer occupancy at $80 a night, $450 a month in winter. Market data: about 50% summer occupancy (AirROI puts average Batumi occupancy in August, the peak month, at about 49%) at $60 a night for a good seaside studio, and $380 a month in winter (Global Property Guide's average studio rent is €330).

The scenarios differ almost twofold, and nearly all of the gap comes from summer occupancy. So the main thing to check before buying is the actual occupancy of similar units in the same complex or nearby, not the brochure forecast.

Capital growth

Besides rent, income comes from rising prices. Buying early in construction is usually cheaper than in a finished building, and developers often project 15–25% growth by completion. But the market has slowed: according to Galt & Taggart, Tbilisi new-build prices rose 4% in 2025, and Batumi is forecast to grow 4–6% a year. Including price growth, total return in the market-data scenario could be around 9–11% a year, though price growth is not guaranteed either.

Takeaways

• Always calculate net yield on your total investment, including renovation and furniture.
• Remember booking platform fees, service charges and off-season vacancy.
• A realistic net yield for a good seaside studio is about 5–7%; 9–10% or more is possible with high occupancy, a strong location and a sensible purchase price.
• Developer forecasts are estimates, not guarantees: ask for the management company's reports on actual occupancy and payouts.

More on the rental market in "How much you can really earn letting an apartment in Batumi", and on finish formats in "Black frame, white frame or turnkey".

A calculation for a specific project

Leave a request and we will prepare a payback calculation for the complex you are interested in, based on its prices, instalment terms and management.

This article is for information only and is not legal or financial advice. Rules and figures can change; confirm current terms before any transaction.