Investment purchases by foreigners prevail in the Batumi real estate market, the latest Galt & Taggart study has shown. As a result, the growth of the housing stock is mainly due to investment apartments, which are mainly located near the sea, while residential complexes for personal use are concentrated within the city.
A survey of developers conducted by Galt & Taggart showed that about three quarters of apartments sold in Batumi are bought by foreigners from different countries (in 2025, their share is 77%). The greatest demand is observed from citizens of Ukraine, Russia, Belarus, Israel and European countries. The interest from citizens of Turkey, Arab countries and Central Asian states is gradually growing. It is noted that the share of Russians, Ukrainians, Belarusians and other Europeans is decreasing slightly, while the share of Israelis is growing.
Foreign investors are attracted by high rental yields (7.4% as of August 2025), expectations of price increases and relatively low investment costs compared to other coastal cities.
Real estate for housing
The main segment consists of local residents and visitors living in Batumi. Despite the fact that the residential real estate market is generally balanced, almost all implemented projects (98%) are focused on the budget and medium segments. There are few premium class projects.
Investment projects
A significantly larger share of current construction is accounted for by investment projects, mainly consisting of middle-class studio apartments priced at 1,500-2,500 USD per square meter. m in a turnkey finish. Galt & Taggart estimates that the number of short-term rental apartments will double by 2029, which could lead to lower profitability if the tourist flow or average length of stay does not increase.
Current trends
- The primary market. In 2024, after record high activity in 2022-2023, demand decreased, while the number of unsold apartments remained high. Although there is a slight recovery in 2025, demand is still well below peak levels, which increases the risks of oversupply and makes the current price growth rate (+9.1% in August 2025 year-on-year) unsustainable.
- The secondary market. The expansion of Batumi's housing stock in recent years has significantly increased activity in the secondary market, while sales have remained stable. In 2025, increased demand led to a faster price increase (+9.6% for new facilities year-on-year).
From 2025 to 2029, 58,000 new apartments will be built in Batumi. Most of them will appear in the area of Novy Boulevard (22,430 units, 98% - investment apartments and 8% - for permanent residence), in the area of the Alley of Heroes (12,066 units, (96:4%) and in Makhinjauri (5,932 units, 90:10%).
