For investors
Rental yields in Georgia: how to calculate them
stroydom.ge calculates property yield in Georgia on the net figure, not the gross one. Market benchmarks at the time of calculation: long-term letting in Tbilisi gives 6–9% gross a year and 5–8% net; short-stay gives 9–14% gross at 55–75% occupancy and 6–10% net. At a net yield of 6–8%, full payback takes 12–17 years, not counting any rise in the property’s value. These are benchmarks, not a forecast or a promise.
Listings promise "12% a year", agents quote a gross figure, and a year later the investor sees something else entirely. The gap almost always comes from the same place: the income was counted, the costs, voids and tax were not. Below is how we model the economics of a property in Tbilisi and Batumi, and why building has different maths from buying.
How does gross yield differ from net yield?
Gross yield is the annual rent divided by the price of the property. That is the number in the listings. Net yield accounts for everything taken out before the money reaches you, and it is usually a third lower.
Gross yield
Annual income ÷ the full cost of the property. Full means the purchase or construction price plus finishing, furniture, appliances and registration. Working from the price per square metre alone is the most common mistake at entry.
Occupancy, not 12 months
Long-term letting rarely runs without gaps between tenants: budget for 10–11 paid months out of 12. Short-stay occupancy runs at 55–75% in Tbilisi and is sharply seasonal in Batumi, collapsing from November to April.
Operating costs
Management, cleaning, linen, platform commission, utilities during voids, minor repairs, furniture wear. In short-stay this is 25–40% of revenue; in long-term letting, 5–12%.
Tax
Letting as an individual is taxed at a preferential rate; registering as a sole trader puts you in a different regime. Confirm the rate and regime with an accountant, but it belongs in the model from the start, not "later".
Long-term or short-stay: which should you choose?
This is not a question of which pays a higher percentage. It is a question of how much time and attention you are willing to spend and how steady your income needs to be.
Long-term letting
A lower rate but far more predictable: one contract a year, minimal operations, almost no management cost. It suits an owner who treats the property as an alternative to a deposit and lives outside Georgia.
Short-stay letting
A higher gross rate, but higher costs and void risk with it. In Tbilisi the format works year round; in Batumi and Kobuleti income concentrates between May and September, and in winter the property often runs at an operating loss.
A hybrid model
Nightly in season, medium-term to relocators for 3–6 months in the shoulder period. It beats the long-term rate without the winter collapse, but it needs a manager on the ground or a management company.
Several blocks in one property
A house with two or three self-contained blocks and separate meters never stands entirely empty and lets you mix formats. It has to be designed in, not retrofitted after construction.
What actually erodes the yield?
- Unbudgeted entry costs: furniture, appliances, kitchenware and textiles run 350–700 GEL/m² and are often missing from the model
- Voids between tenants and in the shoulder season: the most underestimated line in short-stay letting
- Booking platform and management company commission: 15 to 25% of revenue
- Cheap finishes: in a rental property they fail within 2–3 seasons and are replaced at your expense
- Utilities and building service charges, which continue through empty months
- The currency mismatch: costs are in lari while yield expectations are often held in dollars
Why does building change the maths?
Buying finished property means paying a market price that already contains the seller’s margin. Building means acquiring the asset at cost, and that difference feeds into the yield from day one.
Entry at cost
A shell runs 500–700 GEL/m², turnkey 1,250–1,550 GEL/m². The market price of comparable finished housing in the same districts is usually higher, and that gap is your discount on entry.
A layout built to let
The property is designed for a specific rental format: self-contained bedrooms, separate bathrooms, no walking through one room to reach another. Retrofitting this into a finished apartment costs more than designing it in.
Engineering for turnover
Separate meters, serviceable pipework and wiring, hard-wearing materials. Saving here comes back as repairs that land in your most profitable month.
The cost of time
Construction means 12–20 months with no income. That has to go into the model honestly: yield is measured from the first tenancy, not from the day the money went in.
What yield counts as a market benchmark in Georgia?
| Item | What is included and the price |
|---|---|
| Long-term letting, Tbilisi | Gross yields typically run 6–9% a year on the full cost of the property, net 5–8%. Vake and Saburtalo sit nearer the lower end on percentage but hold occupancy more reliably. |
| Short-stay letting, Tbilisi | Gross 9–14% at 55–75% occupancy; net, after management and costs, 6–10%. The spread is set by the quality of the property and who runs it. |
| The coast: Batumi and Kobuleti | A seasonal model, with most income between May and September. Annual net yield is comparable to Tbilisi but uneven, and the off-season needs an operating reserve. |
| Payback period | At a net yield of 6–8%, full payback takes 12–17 years, before any change in the value of the property itself. Capital appreciation has historically delivered most of the investor return, but it is not guaranteed. |
| An important caveat | These are market benchmarks at the time of calculation, not a forecast or a promise. Rents and prices move in both directions. For a specific property we run the numbers against comparable listings in the district and show where the figures come from. |
Long-term letting, Tbilisi
Gross yields typically run 6–9% a year on the full cost of the property, net 5–8%. Vake and Saburtalo sit nearer the lower end on percentage but hold occupancy more reliably.
Short-stay letting, Tbilisi
Gross 9–14% at 55–75% occupancy; net, after management and costs, 6–10%. The spread is set by the quality of the property and who runs it.
The coast: Batumi and Kobuleti
A seasonal model, with most income between May and September. Annual net yield is comparable to Tbilisi but uneven, and the off-season needs an operating reserve.
Payback period
At a net yield of 6–8%, full payback takes 12–17 years, before any change in the value of the property itself. Capital appreciation has historically delivered most of the investor return, but it is not guaranteed.
An important caveat
These are market benchmarks at the time of calculation, not a forecast or a promise. Rents and prices move in both directions. For a specific property we run the numbers against comparable listings in the district and show where the figures come from.
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Frequently asked questions about yields
What is the real rental yield in Georgia?
Net rental yields in Tbilisi at the time of calculation generally fall between 5% and 10% a year: 5–8% on long-term letting and 6–10% on short-stay for well-managed properties. Figures above 12% in listings are almost always gross, calculated without voids, management, tax or the cost of furnishing. We work from the full entry cost, finishing and furniture included.
Is it better to buy finished or to build?
Building gets you in close to cost with a property designed for letting, but it takes 12–20 months without income and requires oversight. Buying finished produces income immediately, at a market price that includes the seller’s margin. Under a three-year horizon buying usually wins; over five years or more, building usually does.
How long does an apartment in Tbilisi take to pay back?
At a net yield of 6–8% a year, 12–17 years on rent alone. That excludes any change in the value of the property, which historically produced most of the investor return. You cannot count on that repeating: it is a record of the past, not a forecast.
Is short-stay letting definitely more profitable?
On the gross rate, yes; on the net, not always. Short-stay takes 25–40% of revenue in management, cleaning, linen and platform commission, and carries void risk. In Batumi a property can run at an operating loss through the winter. Long-term letting pays less but demands almost nothing of you.
Do I need to live in Georgia to do this?
No, most of our investors live outside Georgia. We run construction with weekly photo and video reports and online approvals, and letting is handed to a management company. The one thing that matters is putting that in the model: management costs money and belongs in the yield calculation from the start.
Do you guarantee a yield?
No, and nobody can. We guarantee what is within our control: a fixed construction budget, the schedule, and the quality of the work with a 10-year warranty on the structure. Yield depends on the rental market, and that market moves; we say this before the deal, not after.