Investment in Batumi real estate

The Batumi real estate market has been actively growing for the past few years. The city is becoming an increasingly attractive place to live and invest for both locals and expats. The positive market dynamics are encouraging more and more people to make long-term investments in the region, even if they do not intend to settle here down the line.

In 2024, European Best Destinations ranked Batumi among the top 10 European destinations for investment, alongside such cities as Monaco, Nice, Paris, and Geneva. According to the publication, the optimal prices of real estate in Batumi, simple procedures for buying property (even for foreigners), and a business-friendly environment are ideal for almost all types of investors. Whether one is interested in using tourism as another income lane, wants to start a new business, or wants to buy a property in Europe that will become profitable sooner than expected on average.

According to Forbes, the average profit from investment in real estate in Batumi is 10-13%, which is significantly higher than the average of other European countries (7-8%). With these statistics, it shouldn’t be a surprise that Batumi is currently one of the most attractive locations to those who are interested in investing in real estate. Multiple new real estate projects, rapid infrastructure development, and the consistent year-by-year increase in visitor flow indicate that real estate prices in Batumi will continue to rise in the future.

Why is Batumi an attractive investment location

Being one of the top ten across the entire Europe is a high honor. Why was Batumi selected for the list? First of all, the healthy dynamic environment of the overall Georgian real estate market played a large part in the overall destination attractiveness:

- Real Estate Tax Bene - Georgia's real estate taxes are absurdly low compared to most European countries. Property tax is a maximum of 1% of the real estate value. A person whose annual family income exceeds 100,000 GEL is taxed at 0.8-1%. A person whose annual family income exceeds 40,000 GEL pays approx. 0.5%. And if the annual income of the family is less than 40,000 GEL, real estate is not taxed at all.

- Liberal Business Environment - Georgia is one of the easiest countries in Europe to start a new business: bureaucratic procedures are simple, legislation is lax, and taxes are low compared to most European countries. In the 2023 Fraser Institute Economic Freedom of the World annual report, Georgia was in 15th place. The country had the highest ratings in tax rates, freedom of foreign currency banking transactions, and financial openness.

- A Path to Legal Residency - Investing in real estate is the easiest way for a foreigner to get a residence permit in Georgia. If the market value of the property exceeds $100,000, a person can obtain a short-term residence permit. This permit must be renewed annually but is subject to renewal as long as the person continues owning that property. If the market value of the property exceeds $300,000, the person receives an investment residence permit, which can become the basis for a permanent residence permit if the property remains in the person's possession for 5 years after receiving the investment permit.

Still. Why Batumi and not another city? Why is buying an apartment in Batumi better than investing in Tbilisi or, say, Kutaisi? Currently, several factors put Batumi in a leading position among the Georgian cities.

- Active and Rapid Development - The current environment in the city would be the most important factor. Constructions are active all over Batumi, and the projects differ sharply and spread over a large area. An investment property can be not only an apartment in a residential complex (whether studio or with a separate bedroom) but also a room in a new hotel or a piece of new commercial space. Active development creates diverse investment opportunities for different types of investors.

- Favorable Prices and High ROI - Real estate prices in Batumi are still considered affordable not only by European standards but even compared to Tbilisi. On the other hand, they’re growing rapidly. According to Colliers Georgia research, if in 2018 the average price per m² was $727, in 2023 the price increased to $998. Investors buy property at a relatively low price but can expect a high ROI in years to come.

- Geographic Variety - The high dispersion of development projects across the city allows the investor to choose the location best suited to their needs and preferences. It can be a coastline, mountain slopes, or an active urban center, creating a wide variety of options for different types of projects (ex. a residential complex near the city center, an eco-friendly project in nature on the outskirts, or an isolated villa away from tourists) What does an investor need - a residential complex near the city center, an eco-friendly project in nature on the outskirts, or an isolated villa away from tourists? In Batumi, one can find everything.

Real Estate Investment Types in Batumi

The types of real estate investment common in Batumi can be divided into four main directions:

The first is residential apartments in Batumi, mainly chosen by conservative investors. It is believed to be the most optimal for long-term, stable income seekers who take lower ROI in exchange for minimizing risks.

tourist apartments are still considered a separate direction. . It mainly refers to small, studio-type apartments. They are typically preferred by more active investors who are prepared to take risks associated with seasonality. As Batumi's popularity as a tourist city grows, so does the demand for short-term residential spaces. This type provides high profits during the season, but maintenance may be unprofitable during other times of the year. It requires active marketing to minimize these risks - specifically for both the apartment and Batumi as a destination.

The third is commercial spaces mostly subject of interest for experienced investors. This segment has a good understanding of Batumi business dynamics and can determine what type of spaces will be in demand by area: offices, shops, etc. If successful, it can become a source of stable, long-term income, though demands significant initial capital.

The final, fourth direction is hotels, with the investment growing year by year. Typically aimed at large investors who have experience in the hospitality sector. With the growth of tourism in Batumi, the demand for quality infrastructure and services is increasing. It can bring high profits, but requires a lot of time, a lot of investment, professional management, and constant attention to maintain quality. This direction sometimes partially overlaps with the second one. There are hotels that offer potential investors to purchase individual rooms. However, big and well-known brands are usually not interested in such investments.

For a new investor, it would probably be best to first look at apartments under construction in Batumi - it’s typically the most affordable investment option that guarantees stable growth. As you get to know the city, you can switch to bigger investment opportunities.

Start Investing with OKTO ART HOUSE

OKTO ART HOUSE is an elite residential complex under construction, located in a 6000 m private area in Batumi New Boulevard, 500m from the sea.

Two blocks will be built and more than 1600 apartments will be available. Each block is divided into residential spaces of different sizes, with interested buyers able to choose the optimal option. The complex offers a wide selection of both studio apartments and apartments with separate bedrooms.

Looking for a high-quality Batumi apartment with a sea view, comfortable private infrastructure, and modern, refined design? Then OKTO ART HOUSE is for you.