Batumi rental yield after costs: HomeRadar shows how 9.2% can turn into 6.2%

Eight projects, very different economics

• Tekto Franco: budget $63,360, $7,512 a year after expenses, 11.9% modelled net yield (still under construction).
• Dar Tower: $58,820, $6,094, 10.4%.
• Arcon Batumi Residence: $66,400, $6,094, 9.2%.
• Next Magnolia: $59,470, $4,538, 7.6%.
• Next Downtown: $161,460, $9,466, 5.9%: the most income in dollars, the lowest return on capital.

From gross rent to what the owner keeps

In the Arcon example, $45 a night at 53% occupancy means about 193 booked nights and $8,705 in gross rent. After the 30% operating deduction in HomeRadar's model, about $6,094 a year is left, before personal income tax, loan interest and major repairs.

The scenarios show how sensitive this is: at 40% occupancy net rent falls to about $4,599 (6.9%), at 60% it rises to $6,899 (10.4%), and at $40 a night with 40% occupancy it drops to $4,088 (6.2%).

By district, HomeRadar's 5 October snapshot puts the median modelled yield at around 10% in Green Cape and 5% in Old Batumi, where occupancy is highest (57%) but entry prices are much higher.

Read the full HomeRadar study →

HomeRadar.ge is a property research project affiliated with EstateScope.