Is Batumi Real Estate a Good Investment in 2026? Market Figures and Risks
Updated: November 2026
In short. The Batumi market is growing: 17,478 apartments worth $1.3 billion were sold here in 2025, more than half of them to foreigners. But average rental yield has fallen for the third year in a row, from 10% to 7.4% before expenses, and developers have more unsold stock. Yields fall because prices rise faster than rents. Our conclusion: in 2026 results depend more on the format than on the city. A property with year-round demand and professional management runs on different economics than an apartment that earns mostly in summer.
The market in figures
| Indicator (Batumi, 2025) | Value | Year on year |
|---|---|---|
| Apartment sales | 17,478 | +15% |
| Market volume | about $1.3 billion | +23.8% |
| Share of foreign buyers | 52% | — |
| Average price, new builds | about $1,865 per m² | +9.4% |
| Average price, resale | about $1,450 per m² | +6.9% |
| Gross rental yield | 7.4% | 8.8% in 2024, 10% in 2023 |
| Unsold apartments in projects | about 12,400 | +13.9% |
Source: investment bank Galt & Taggart, Batumi residential market review for 2025. According to Colliers Georgia, 2025 set a record for the number of deals, and foreigners accounted for 70% of the growth.
Who is buying
Half of all deals in Batumi are made by foreigners. Buyers from Israel accounted for 13% of all sales, as did Europeans. Another 11% were bought by citizens of Ukraine, Russia and Belarus, and 3% each by buyers from Turkey and Central Asia. People buy here for three reasons: the entry price is lower than on the European coast, taxes are simple, and foreigners buy on the same terms as citizens.
Why rental yields are falling
Prices per square metre are rising while the average nightly rate stays around $35.6. The apartment gets more expensive but earns the same, so the yield in percent goes down. The gross 7.4% is before maintenance, cleaning and vacancy. International Investment estimates the net yield of an ordinary apartment at 2–4% and expects a further decline in 2026.
The main reason is seasonality. Adjara received about 5 million tourists in 2025, but most come for the beach season. If there is no reason to visit a building in winter, most of its income comes in the summer months.
Risks to consider
- Oversupply. Unsold stock grew by 13.9%. Galt & Taggart calls this the market’s main warning sign.
- Seasonality. An ordinary apartment by the sea earns mostly in summer.
- Remote management. Finding guests and arranging cleaning and repairs from another country is hard, and a random manager takes a share of the income with no guaranteed result.
- Construction timelines. On the primary market it matters what stage construction is at and how the developer delivered previous projects.
- Geopolitics. Galt & Taggart notes a short-term risk to demand from Israel.
What works in 2026
Our conclusion from these figures: properties with three features look better than the market:
- Year-round demand. Facilities that bring guests outside the beach season: indoor pools, wellbeing, business events, family holidays.
- Professional management. An operator that sells the nights, serves the guests and reports to the owner.
- An independent yield estimate. A figure from a consultancy with clear assumptions, not a number from a developer’s advert.
Add Georgian taxes to this: there is no purchase tax, residential rental income is taxed at 5%, and there is no capital gains tax when you sell after two years of ownership. More in our article on taxes.
Where Lagoon Resort fits
Lagoon Resort in Batumi is built on exactly this logic. It is a resort on 2 hectares of private grounds with more than 40 facilities, in partnership with Hilton. It has a heated glass-covered sandy lagoon, a 2,000 m² Longevity Centre and business facilities — reasons to come outside the summer. The income residences are managed by HSC Group, a certified Hilton partner. Income goes into a shared pool, so an owner does not depend on whether their own residence is occupied.
Cushman & Wakefield studied the market and investment potential of Lagoon Resort and estimates the yield at up to 16.2% a year, depending on the residence type. This is a forecast, not a fact: the result depends on occupancy and nightly rates. The calculation with the model’s assumptions is in the Investor Pack. The residences now on sale will be completed in Q4 2027.
Bottom line
Investing in Batumi in 2026 makes sense if your horizon is five years or more and you choose a format with year-round demand. Be cautious if the plan relies on summer rentals of an ordinary apartment and a quick resale: Galt & Taggart expects prices to grow more modestly, by 4–6% a year.
Frequently asked questions
Can a foreigner buy property in Batumi?
Yes, on the same terms as Georgian citizens. Restrictions apply only to agricultural land.
What is the average rental yield in Batumi?
7.4% before expenses in 2025, according to Galt & Taggart.
Does buying give the right to a residence permit?
Yes, if the market value of the property is $150,000 or more. More in our article on residence permits.
Sources: Galt & Taggart via Investor.ge, Galt & Taggart via GBC, International Investment, Colliers Georgia via BM.ge, Adjara tourism in 2025.
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