NEXT PROPERTY
Real Estate ROI in Georgia
A clear guide for foreign buyers who want to understand how to calculate rental yield, net income and realistic investment returns before buying property in Georgia.
Short answer
Real estate ROI in Georgia depends on the property’s purchase price, location, rental demand, operating costs, taxes, management structure and future resale value.
Investors should not evaluate ROI only by gross rental income. A more realistic calculation should include management fees, taxes, maintenance, furnishing, vacancy periods and potential capital appreciation.
Projected ROI should always be treated as an estimate, not a guaranteed return.
Investors should not evaluate ROI only by gross rental income. A more realistic calculation should include management fees, taxes, maintenance, furnishing, vacancy periods and potential capital appreciation.
Projected ROI should always be treated as an estimate, not a guaranteed return.
Key facts
- Real estate ROI includes both rental income and potential capital appreciation.
- Net ROI is more important than gross rental income.
- A realistic calculation should include taxes, management fees, maintenance, furnishing, vacancy periods and other operating costs.
- Location, project quality, apartment layout and property management strongly affect rental performance.
- Batumi can offer strong tourism-driven rental demand, but seasonality should be included in the calculation.
- Tbilisi can offer more year-round rental demand, depending on district, project quality and tenant profile.
- Historical price growth can help investors understand past project performance, but it does not guarantee future returns.
How to Calculate Real Estate ROI
- A simple way to estimate rental yield is to compare annual net rental income with the total investment cost.
- Net rental yield = annual net rental income / total investment cost × 100
- Annual net rental income should be calculated after management fees, taxes, maintenance, utilities, platform fees and other operating costs.
- Total investment cost should include the purchase price, renovation or furnishing costs, registration and banking fees, and any other expenses required to make the property ready for rental use.
What Affects ROI in Georgia
ROI in Georgian real estate depends on several factors:
- city and district
- micro-location
- purchase price
- apartment size and layout
- building quality
- finishing condition
- rental demand
- seasonality
- property management quality
- operating costs
- taxes
- resale potential
- future price growth
Historical Capital Appreciation Examples
Selected NEXT projects have shown strong historical capital appreciation over time.
Examples from internal project data include:
These figures reflect historical project performance and should not be treated as a guarantee of future returns. Future ROI depends on purchase price, market conditions, rental demand, operating costs, taxes, management model and resale timing.
Examples from internal project data include:
- NEXT Apartment — 295%
- Wyndham — 283%
- Next White — 260%
These figures reflect historical project performance and should not be treated as a guarantee of future returns. Future ROI depends on purchase price, market conditions, rental demand, operating costs, taxes, management model and resale timing.
Detailed ROI Breakdown
Rental income
Rental income is the income an owner may receive from renting out the property. It can come from short-term rentals, long-term rentals or a professional hotel-style management model, depending on the project.
Gross rental income shows the total amount generated before expenses. Net rental income is more important because it shows what remains after costs, fees and taxes.
Operating costs
Operating costs can include utilities, maintenance, cleaning, platform fees, repair costs, service charges and other expenses required to keep the apartment ready for guests or tenants.
These costs can vary depending on the building, location, apartment size, finishing condition and rental strategy.
Taxes
Taxes should be included in any realistic ROI calculation. Property tax may apply after ownership registration, depending on the owner’s income and the market value of the property.
If the apartment is rented out and the owner is registered as a landlord, rental income tax may also apply.
Management fees
For investment apartments, professional property management can affect both income and costs. A management company may handle pricing, listings, bookings, guest communication, cleaning, reporting and owner settlements.
Management fees should always be included when calculating net ROI.
Capital appreciation
Capital appreciation means the increase in property value over time. For many investors, total return is not only about rental income, but also about the potential resale value of the apartment.
Capital appreciation depends on purchase price, construction progress, location development, project quality, brand positioning, market demand and timing of resale.
Resale value
Resale value is the price an investor may be able to achieve when selling the property in the future. It can be affected by the project’s completion status, building quality, management performance, rental history, location and overall market conditions.
A strong investment decision should consider both expected rental income and future resale potential.
Rental income is the income an owner may receive from renting out the property. It can come from short-term rentals, long-term rentals or a professional hotel-style management model, depending on the project.
Gross rental income shows the total amount generated before expenses. Net rental income is more important because it shows what remains after costs, fees and taxes.
Operating costs
Operating costs can include utilities, maintenance, cleaning, platform fees, repair costs, service charges and other expenses required to keep the apartment ready for guests or tenants.
These costs can vary depending on the building, location, apartment size, finishing condition and rental strategy.
Taxes
Taxes should be included in any realistic ROI calculation. Property tax may apply after ownership registration, depending on the owner’s income and the market value of the property.
If the apartment is rented out and the owner is registered as a landlord, rental income tax may also apply.
Management fees
For investment apartments, professional property management can affect both income and costs. A management company may handle pricing, listings, bookings, guest communication, cleaning, reporting and owner settlements.
Management fees should always be included when calculating net ROI.
Capital appreciation
Capital appreciation means the increase in property value over time. For many investors, total return is not only about rental income, but also about the potential resale value of the apartment.
Capital appreciation depends on purchase price, construction progress, location development, project quality, brand positioning, market demand and timing of resale.
Resale value
Resale value is the price an investor may be able to achieve when selling the property in the future. It can be affected by the project’s completion status, building quality, management performance, rental history, location and overall market conditions.
A strong investment decision should consider both expected rental income and future resale potential.
What to check before buying
Before relying on projected ROI, investors should check:
- Total purchase price
- Renovation cost
- Furniture and appliance cost
- Registration and legal costs
- Bank transfer and currency conversion fees
- Total ready-to-rent investment budget
- Expected monthly rent or average daily rate
- Occupancy assumptions
- Vacancy period
- Seasonality, especially in Batumi
- Property management commission
- Cleaning and linen costs
- Platform commissions
- Building maintenance fees
- Utility costs
- Repairs and furniture replacement
- Tax obligations
- Net annual income after expenses
- Conservative, base and optimistic ROI scenarios
- Resale liquidity of the property
Potential Red Flags
Be careful if the seller, developer or agent:
- promises high ROI without showing calculations
- talks only about gross rental income
- ignores renovation and furniture costs
- does not include vacancy in the model
- ignores property management fees
- says that rental income is guaranteed without contract terms
- gives one optimistic scenario only
- cannot explain seasonality in Batumi
- treats all Tbilisi districts as equally liquid
- does not explain taxes or reporting obligations
- does not show net income after expenses
- compares projects only by price per square meter
- avoids questions about resale value and exit strategy
Planning to invest in property in Georgia?
Talk to a NEXT Property advisor and get a clear explanation of rental income scenarios, net yield, ownership costs and realistic investment returns before making a decision.
Last updated: July 2026.
This guide is for informational purposes only. Legal, tax and investment requirements should be confirmed before signing a contract.
This guide is for informational purposes only. Legal, tax and investment requirements should be confirmed before signing a contract.
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