For several years, Batumi has been establishing itself as a destination of choice for real estate investors. This Georgian city, located on the Black Sea coast, attracts tourists from all over the world thanks to its economic dynamism, its beaches, and its exceptional natural setting. At the same time, the real estate sector is booming, and real investment in apart-hotels is proving to be a particularly profitable strategy for those looking to diversify their portfolio.
Why invest in Apart-Hotels in Batumi?
The aparthotel is a concept that combines tourist accommodation with the advantages of rental property. This type of accommodation is increasingly attracting travelers looking for flexibility and comfort, as well as investors who see it as an opportunity for long-term profitability.
1. Simplified management
Investing in an apart-hotel in Batumi offers the advantage of delegated management. The majority of apart-hotel projects are managed by hotel chains or specialized companies. This means that investors do not have to worry about the day-to-day management of the property or finding tenants. The management company takes care of everything: rental, maintenance, and even tenant services.
2. High Rental Yields
Due to the rapid growth of tourism, Batumi experiences high occupancy rates throughout the year, especially during the summer season. Apart-hotels, often located in popular tourist areas, benefit from this growing demand. Investors can expect net rental yields ranging from 8% to 12% per year, depending on the location and amenities offered by the property.
Real Estate Market Analysis: Price Comparison and Profitability
The price per square meter in Batumi for an apart-hotel varies between 900 and 2,000 USD, depending on the neighborhood and the characteristics of the building. In comparison, classic residential apartments are slightly cheaper, but do not offer the same profitability prospects. Here is a comparison of the two options:
| Property type | Average price per m² (USD) | Annual rental yield (%) |
|---|---|---|
| Apart-Hotel | 1,200 – 2,000 | 8% to 12% |
| Residential Apartment | 900 – 1,500 | 5% to 8% |
Apart-hotels also benefit from favorable taxation in Georgia, where taxes are generally lower than those in other European countries. Additionally, income from short-term rentals is often exempt from VAT for new projects, further boosting profitability.
Investor Testimonials: Examples of Success
Marie L., French investor: “I decided to invest in an apartment hotel in Batumi in 2021, and in less than two years, I saw a 10% return rate on my investment. The market is still young, but tourist demand is constantly increasing, which allows me to have almost full occupancy all year round.
David M., British investor: “What appealed to me about the apart-hotels in Batumi was the turnkey management. I don't need to take care of rental management, and the returns are much higher than those I was able to obtain in Western Europe. »
The Outlook for 2024 and beyond
Batumi shows no signs of slowing down. The city continues to attract international tourists, and new infrastructure, such as shopping malls, resorts, and amusement parks, are being developed. These investments in tourism infrastructure are expected to further increase demand for apart-hotels. Property prices are expected to continue to rise over the next 5 to 10 years, with an estimated annual valuation of 5% to 7%.
A Secure and Profitable Investment
Investing in an apart-hotel in Batumi offers an excellent opportunity to benefit from high rental yields in a booming city. With simplified management, constantly growing tourist demand, and significant tax advantages, it is an investment that is profitable in the short and long term. For investors looking to maximize their returns, while benefiting from the growth of a dynamic city, Batumi is a winning bet.
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