Rental Income in Georgia Rises by 12% in Seven Months

Between January and July 2025, individuals in Georgia earned 344 million lari from renting residential, commercial, and office properties — a 12% increase compared to the same period in 2024, according to BM.GE citing data from the country’s tax service.

The average monthly total rental income was ₾49 million, ranging from a low of ₾44 million in January to a high of ₾52.1 million in July. On average, each landlord earned ₾1,835 per month (around $680). The calculation includes all declared rental income — from both housing and commercial or office spaces, as official statistics do not differentiate between these categories.

The market still shows a degree of seasonality: in January 2025, 23.9 thousand people earned income from rentals, rising to 28.3 thousand in July. Experts note that the growth in income is partly due to more landlords formally registering rental contracts.

According to Galt & Taggart, rental rates in Tbilisi averaged $11.4 per sq m in 2023, $9.9 in 2024, and $9.3 in May 2025, before edging up to $9.4 in June. The most expensive districts remained Vake ($14.3) and Mtatsminda ($11.9), while the most affordable were Samgori ($7.6), Vashlijvari ($7.8), and Gldani ($7.9). The average rental yield in Tbilisi was 8.4%, surpassing that of many other world capitals.

In Batumi, yields are even higher, although the housing sector is less profitable than the hotel business. In the first half of 2025, hotel occupancy reached 54% (+4 percentage points year-on-year), with an average daily rate (ADR) of $126. The premium sector, considered the most profitable, is strengthening its position. In Batumi and its suburbs — especially the Gonio area — a nationally significant investment cluster is being developed under a state program with private capital participation. Amid active construction, the regional property market has seen prices rise by 45% and sales by 11%. Investors from the EU, Israel, and the Middle East are showing strong interest.

By July 2025, key indicators in Georgia’s tourism sector — including accommodation — recorded further growth, according to the National Statistics Office. In Q2, there were 1.8 million international visits, up 6.9% year-on-year. Most trips were made by citizens of Russia (361.8k), Turkey (308.3k), and Armenia (210k), with significant growth from Israeli tourists.

Top destinations included Tbilisi (928.3k visits) and Adjara (629.8k), followed by Mtskheta-Mtianeti and Imereti. Visitors aged 31–50 made up 46.5% of the total, those aged 15–30 accounted for 24.7%, and those over 51 comprised 28.8%. Women represented 41.8% of arrivals.

The average length of stay rose to 5.3 nights, up 4.7% from the previous year. Repeat visits made up 78.1% of the total. The main purpose of travel was leisure (49.4%), followed by visiting friends and relatives (24.3%), transit (13.3%), business (6.9%), and shopping (4.4%). Visitor satisfaction remained high: 81.3% rated their trip positively, and 17.4% “generally positive.”

Foreign visitors’ total spending in Q2 rose 0.6% to ₾3.47 billion, although the average per trip fell by 6% to ₾2,116.8. Tourists spent the most on shopping (₾1.02 billion), accommodation (₾934 million), and food (₾766 million), followed by cultural and entertainment activities (₾413 million) and transport (₾292 million).

According to TBC Capital, Georgia recorded 2.81 million international visits in the first half of 2025 — up 4.6% year-on-year. The biggest growth came from Israel and Azerbaijan (+36% each), India (+31%), and Russia, the EU, and the UK (+10% each). International tourism revenues reached $1.97 billion, up 3.8% from H1 2024. Tourists from Russia contributed the largest share ($308 million), followed by the EU and UK ($277 million) and Israel ($242 million).

Overall, in the first half of 2025, Georgia’s real estate and tourism sectors are showing stable growth. Rental income from residential and commercial properties is rising, investment activity is expanding — especially in the premium segment — and the tourism flow continues to grow, driven by both traditional markets and new destinations. This ensures high rental occupancy and stimulates infrastructure development.