Real Estate Yield in Georgia: Actual Figures and Calculations

You see ads claiming: "15% annual return in US dollars!" You are shown beautiful occupancy graphs at 90%. That is marketing, not the reality of real estate investing in Georgia. In fact, the market has its own clear mathematics that is not shown in presentations.

The team at Georgia Private Investment (GPI), based on data from hundreds of properties under management, reveals the real yield figures and gives you a tool to calculate for yourself. Forget the promises — calculate the facts.

Reality: Seasonality is the main driver of returns.

• Batumi: The peak season lasts 4–5 months (June – September/October). For the rest of the year, occupancy drops to 40%, unless you offer some unique conditions.
• Tbilisi: The season is more balanced due to business and medical tourism, but peak prices still occur from late spring through early autumn.

GPI data: The average annual occupancy of a well‑managed apartment in Batumi rarely exceeds 65%. This is the starting point for any realistic calculation.

Reality: A management company takes a significant share of the revenue.

The standard management fee is 20–40% of turnover. But that is not the main issue. Many management companies are not incentivised to maximise the income of a specific owner. Their earnings come from the total number of bookings across all apartments they manage, not from your net profit.

Reality: The highest yields often come not from studios, but from apartments with separate bedrooms (1–2 bedroom units) — these are the champions of liquidity and stable long‑term income. Their scarcity on the rental market makes them valuable assets.

Here is how we calculate real returns for our clients at GPI. Take a calculator and follow along.

Step 1: Determine the Potential Gross Income

• Do not look at peak‑season prices. Analyse prices on Airbnb/Booking during the off‑season (November, February, March).
• Calculate an average daily rate for the year.
• Multiply that by a realistic occupancy rate: 320 days per year (approx. 87%) is an excellent result; 220 days (60%) is a realistic starting point.

Formula: Average daily rate × 220 days = Gross annual income

Step 2: Subtract All Operating Expenses (OPEX)

Create a table of mandatory monthly expenses:

• Management company fee: 25–30% of gross income
• Utilities: in apart‑hotels, $2–4 per m²/month; in residential buildings, $30–80/month
• Taxes
• Reserve for repairs and furniture replacement: at least 5% of turnover
• Internet, cleaning between guests, minor repairs

Step 3: Calculate the Net Annual Profit

Formula: Gross income − (Management fee + Utilities + Taxes + Reserve) = Net profit

Step 4: Calculate the Return on Invested Capital

Formula: (Net annual profit / Property purchase price) × 100% = Annual yield (%)

GPI Case Study: Calculation for a Studio in Batumi Priced at $70,000

• Average daily rental rate: $45
• Gross income (220 days): $45 × 220 = $9,900
• Expenses:
• Management fee 30%: $2,970
• Utilities $60/month: $720
• Reserve 5%: $495
• Total expenses: $4,185
• Net profit (before tax): $9,900 − $4,185 = $5,715
• Yield: ($5,715 / $70,000) × 100% = approximately 8.2% per year

Checklist: 5 Signs of a High‑Yield Property

A property is likely to generate stable income if:

1. It is within walking distance (up to 10 minutes) of the sea (Batumi) or the city centre (Tbilisi).
2. It has a separate, enclosed bedroom (not a studio and not a mezzanine bedroom).
3. The building has a pool, gym, spa, or casino.
4. The windows do not risk being blocked by new construction (check the master plan!).
5. The price per m² is comparable to or lower than the area average.

GPI Expert Summary: How to Make Your Investment Predictable?

• Calculate backwards. Start with your desired net annual income ($6,000, $10,000) and use our formula to arrive at a target purchase budget.
• Manage yourself or with a trusted partner. If you are not ready to personally handle rentals, your management partner must be financially incentivised by your profit, not by turnover.
• Diversify. Consider a combination: a liquid 1‑bedroom apartment in Tbilisi for long‑term rental, plus an apartment in Batumi for seasonal income.

Would you like a ready‑made yield calculation for a specific property? Send us a link to the apartment or property you like. GPI specialists will prepare a return forecast for you within 24 hours.

Georgia Private Investment (GPI) is a trusted real estate brokerage company in Georgia, operating since 2018.

• Track record in numbers: We manage a client property portfolio with a total value exceeding $15 million. We analyse yield and occupancy reports monthly.
• Expertise in returns: We do not just sell properties. We build and verify financial models for every investment, taking into account seasonality, operating expenses, and tax implications.
• Services: Selection of investment‑friendly properties, ROI calculation and investment memorandum preparation, property management arrangement, full accounting and tax support for rental income.