Batumi vs Tbilisi: where is it more profitable to invest in real estate in 2025?
Georgia continues to attract foreign investors with its loyal legislation and stable growth of real estate prices. However, before buying, it is worth comparing the country’s two main markets – the dynamic resort city of Batumi and the business capital of Tbilisi.
Batumi Real Estate Market
Batumi offers investors a seasonal economy with pronounced peaks and troughs. Average prices per square meter in new buildings are $1,200-2,500, which is 15-20% lower than in Tbilisi. However, rental yields in the high season (May-September) reach 10-12% per annum, especially for properties within walking distance of the sea.
Key advantages of the Batumi real estate market:
- High demand for short-term rentals from tourists
- Well developed entertainment and casino infrastructure
- Growth prospects due to the new airport and plans to create a marina.
The main risks are over-saturation of the market with new construction and seasonal fluctuations – occupancy drops by 40-50% in winter.
Tbilisi Real Estate Market
The capital of Georgia shows a more stable but less dynamic growth. Average prices range from $1,500 to $4,000 per square meter in prime areas such as Vake or Old Town. Rental yields are more modest, at 6-8% per annum, but with no pronounced seasonality.
Benefits of investing in Tbilisi:
- Constant demand from expats and foreign companies
- Developed business infrastructure
- Large selection of redevelopment sites
The main disadvantage is a higher entry threshold and less potential for short-term speculative gains.
Comparative Analysis
According to the National Agency of Public Registry, last year prices in Batumi increased by 12%, in Tbilisi – by 8%. However, experts note that Batumi’s growth is largely due to inflationary processes, while the Tbilisi market shows organic development.
For long-term investments (5+ years), Tbilisi appears preferable due to its diversified economy. Short-term investments (1-3 years) in quality real estate in Batumi can yield quick returns, but require active management.
Outlook 2025
In Batumi, several major projects are expected to be completed – the Batumi Towers residential complex and the reconstruction of the Boulevard, which may give additional impetus to the market. In Tbilisi, the main growth drivers will be the development of the Krtsanisi district and the construction of a new metro line.
Conclusion
For conservative investors seeking stability, Tbilisi is a better choice. Those willing to take risks for higher returns should consider Batumi. The ideal strategy is diversification: buying an apartment in Tbilisi for long-term rental and a studio in Batumi for seasonal income. In any case, 2025 remains a good time to enter the Georgian real estate market.