🏡 Gross Rental Yield in Georgia

Rental Yields in Georgia

The Rental Yield indicator measures the annual rental income as a percentage of the purchase price – the key metric for real estate investors. Georgia offers average gross yields of approximately 9% – significantly above the European average of 3–4%.

Rental Yield by Location and Property Type

Tbilisi – Long-term Rental (unfurnished, local tenants):

• City center (1-bedroom): ~USD 500–800/month; buy price ~USD 70,000–120,000 → Yield: ~6–8%
• Good residential areas: ~USD 400–600/month; buy price ~USD 50,000–80,000 → Yield: ~7–9%

Tbilisi – Short-term rental (Airbnb, tourist):

• City center, furnished: ~USD 50–100/night, ~50–60% occupancy → Yield: ~10–15% gross
• High management costs, seasonal fluctuations – net ~7–10%

Batumi – Hotel-apartment (Condo-hotel model):

• Many Batumi developers offer managed apartments with guaranteed yields of 7–10%
• These are special products (hotel management contract) with fixed-term guarantees
• After guarantee period, yields depend on tourism demand

Tax on Rental Income

• 5% flat rate: Georgia offers a simplified 5% income tax for rental income from residential properties (alternatives: file as regular income at 20%)
• The 5% option makes rental income tax burden minimal by international standards

Factors Supporting High Yields

• Strong demand from expats, digital nomads, remote workers (growing since 2020)
• Short-term rental demand from tourism (record visitor numbers in 2023/2024)
• Relatively low purchase price per m² compared to Western European cities
• USD/GEL-denominated rental agreements common – protection against currency risk

Conclusion: Georgia offers internationally competitive rental yields of ~9% gross for conventionally structured investments, with the potential for significantly higher yields in the short-term rental market. Combined with low purchase transaction costs, 5% rental income tax, and 0% CGT after 2 years, the total ROI profile is outstanding by European comparison.

This article was created on April 14, 2026