The Batumi real estate market offers high returns
Galt & Taggart analyzed the Batumi real estate market in the second quarter of 2025. According to the study, the sector is showing steady growth stimulated by the tourism industry.
The Batumi market is attracting the attention of foreign investors. The resort’s popularity and high rental yields make Batumi a profitable destination for capital investment. The construction industry is striving to meet the growing demand by actively implementing projects in the coastal area. This has contributed to increased sales and rising prices. At the end of the second quarter of 2025:
– sales reached 4,018 units;
– compared to the same period in 2024, the figure grew by 9.5%;
– the number of transactions in the secondary market increased by more than 23%;
– the new construction segment showed a 0.5% decline in growth due to protracted transaction registration.
The primary market is showing more positive dynamics. According to realtor surveys, sales of new housing increased by over 13% during the quarter. Growth over six months amounted to 37.3%.
The average price per square meter of new construction is US$1,427. This figure increased by nearly 3% over the quarter. Prices in the new secondary housing sector are slightly lower at US$1,307 per square meter. These are houses for which operating permits were issued after 2013.
The Batumi market investment activity overview
Investors are gradually shifting their focus toward more expensive housing. The percentage of properties priced under US$1,000 per square meter has decreased to 40.5%. For comparison, this figure exceeded 51% of total sales in 2023. Properties in the US$1,500–US$2,500 per square meter price range account for approximately 23% of transactions.
The Batumi market is largely investor-oriented. The most common strategy for buying an apartment is to generate income through short- and long-term rentals.
The demand structure is distributed as follows:
– transactions involving apartments ranging from 25 to 50 square meters account for 64%;
– properties with an area between 51 and 80 square meters account for over 28%;
– apartments ranging from 81 to 150 square meters account for 7.5% of sales;
– properties larger than 150 square meters account for only 0.5% of sales.
Batumi consistently offers high returns in the rental sector. In the first seven months of 2025, investor profits increased by 12%. On average, real estate in the city yields 8.6% per year, higher than in Tbilisi (8.4%). For comparison, the yield is about 6% in Lisbon and 4.6% in Nice.
The Batumi market remains one of the most attractive in Europe for investment. Growth in property profitability is supported by high interest from foreign buyers.