Georgia's Black Sea coast continues to attract foreign investors: by the end of 2025, the share of foreigners in the Batumi housing market reached 52%. Although this figure is slightly lower than the records of two years ago, analysts at Galt & Taggart are noting structural changes in demand: interest from some countries, including Russia, is declining, but new leaders are emerging.
Who is Buying Property in Batumi
Georgia: A Return of Confidence
Local residents purchased 48% of apartments, significantly higher than the 2024 figure (38%). Experts attribute this surge to restored confidence in the market and the growing prosperity of Georgian citizens.
Israel: The New Leader Among Foreigners
Israeli investors have made a sharp breakthrough, increasing their share from 6% to 13–14% over two years. They now firmly hold second place in the overall buyer ranking (after Georgian citizens) and first place among foreigners.
EU: Volatility from Large Deals
The share of European buyers decreased from 18% to 13%. Analysts explain this as a result of the "high base" effect from the previous year, when the market recorded one-off large transactions, combined with a general reassessment of investment risks.
Eastern Europe and Turkey: A Decline
Buyers from Russia, Ukraine, and Belarus continue to reduce their presence, accounting for 11% of the market by the end of the year. Turkey's share remains consistently low at 3%.
Central Asia and Other Countries
Representatives from Kazakhstan, Uzbekistan, and other states in the region maintain a stable share of around 3%. The share of other countries decreased from 10% to 8%.
The main trends of the real estate market in Batumi:
- Recovery of local demand (+10 percentage points year-on-year);
- Strengthening position of Israel;
- Decline in interest from Eastern European countries;
- Key drivers among foreigners - Israel and the EU.
Secondary Market Overtakes New Builds
The total number of transactions increased by 15%, reaching 17,478. For the first time in a long while, secondary housing surpassed new builds: 9,500 transactions compared to 8,000. Experts link this to an accumulation of unsold apartments in projects under construction - their volume increased by 13.9% to reach 12,400 units.
Construction Prospects and Prices
Between 2020 and 2024, Batumi's housing stock grew from 86,000 to 119,000 apartments. Over the next five years (until 2029), another 58,000 units are planned to be introduced, with 80% of them intended for short-term rental. In some districts, the share of such investment apartments reaches as high as 96%.
Yields are Falling
The average price in new buildings is $1,865 per sq. m, while in the secondary market it is $1,450 per sq. m. Rental rates have stabilized at $35.6 per sq. m per year.
The main signal for investors is the decline in yields: from 10% in 2023 to 7.4% in 2025. However, analysts emphasize that this refers to gross yield. Net profit after all expenses currently stands at only 2–4%. If supply continues to grow, yields could fall to 1.5–2%, calling into question the viability of investing in apartments. Experts recommend considering the hotel sector as a more profitable alternative.
