Payback of a new-build flat in Batumi: how to calculate

As of 18 October 2026, this is a reference on how to calculate the payback of a new-build flat in Batumi. It promises no income, does not advise you to buy and does not replace a tax adviser. In short: payback is the price of the flat divided by the net income per year. Net income depends on three things you almost always estimate yourself: occupancy, price per night and costs. So an honest calculation is not one number but several scenarios.

Gross and net yield

Gross yield is the yearly rental revenue divided by the price of the flat. Costs are not deducted.

Net yield is what is left after the management company, utilities, cleaning, tax and other costs, divided by the price of the flat.

Payback in years is the price of the flat divided by the net income per year. If net income is zero or negative, the flat does not pay back on these figures.

When someone quotes a "yield", ask which one it is. Advertising more often shows the gross figure. For more on checking other people's promises, see the guide how to assess a promised yield.

What the costs are made of

You deduct these items from revenue. For each one, ask for a specific amount before you buy.

• Management company. Each company charges differently. Ask for the terms in writing.
• Utilities and internet.
• Building service charge, if your complex has one.
• Cleaning and linen for short-term rental.
• Booking platform fees for short-term rental.
• Tax. Order No. 412 of 6 November 2023 sets 5% on a private person's income from renting out housing, without deductions. The general income tax rate is 20%. We did not confirm whether 5% applies to short-term rental. Ask a tax adviser.
• Repairs, furniture replacement and fit-out.
• Vacancy. It is not a cost item, but months without guests reduce revenue. It is reflected in occupancy.

For more on tax and on the two rental formats, see the guide renting out an apartment in Batumi: short or long term.

Seasonality

Demand for short-term rental is uneven through the year. So average occupancy for the year is always below occupancy in the best month. According to Geostat, the flow of international visitors to Georgia in Q3 2025 was larger than in Q1. These are figures for the whole country, not for Batumi. We did not use confirmed occupancy statistics for Batumi itself.

For the calculation, use average occupancy for the year, not the peak. Use the average price per night for the year, not the high-season price.

The calculator on the object page

The page of each new build in the GeCoast catalogue has a block "Daily rental estimate", if the object has a price. The block has five fields:

1. Apartment price, $. By default it shows the price of the object's cheapest plan, or the object's "from" price.
2. Price per night, $.
3. Occupancy, %. The share of 365 nights the flat is occupied.
4. Management company fee, %. A share of revenue.
5. Costs per year, $. Everything else: utilities, service charge, cleaning, tax.

Change the figures and the estimate updates at once. Below the fields the calculator shows:

• revenue per year: price per night × 365 × occupancy;
• the management company's amount;
• costs;
• income per year: revenue minus management minus costs;
• yield per year: income divided by the price of the flat;
• payback in years. If nothing is left after costs, the block says "does not pay back on these figures".

If the object's card has no rental figures of its own, the calculator uses a neutral example. The block states plainly that it is an example, not a guarantee of income. Enter your own figures.

What the calculator does not do. It does not model an instalment plan, a loan, price growth, fit-out costs or seasons. Tax is not a separate line either. You put the tax into the "Costs per year" field yourself. It is a tool for comparing scenarios, not a forecast.

What the GeCoast catalogue shows

Below are the GeCoast catalogue figures as of 20 October 2026. These are "from" prices stated in the catalogue, not sale prices and not a forecast. The catalogue does not cover the whole Batumi market. Yield and occupancy cannot be calculated from these data.

• Base: 24 published new builds in the catalogue as of 20 October 2026.
• Price per m² by property: from $1,000 to $3,850, median $2,100.
• Plan area: from 27 to 231.4 m², median 47.5 m² (119 plans).
• "From" price for the 99 plans that have one: from $46,020 to $472,410, median $107,300.

A sample calculation: conditional figures

A sample, not a forecast. The figures are invented and only show the method. The conditional $100,000 is close to the median catalogue "from" price ($107,300), but the rental figures are still conditional.

A flat costs $100,000. The price per night is $40, occupancy is 45%, the management company takes 25% of revenue, and other costs are $700 a year.

• Revenue: 40 × 365 × 0.45 = $6,570.
• Management company: 25% of 6,570 = $1,643.
• Costs: $700.
• Net income: 6,570 − 1,643 − 700 = $4,227.
• Gross yield: 6,570 ÷ 100,000 = 6.6%.
• Net yield: 4,227 ÷ 100,000 = 4.2%.
• Payback: 100,000 ÷ 4,227 ≈ 23.7 years.

Now change only occupancy. At 35%, net income is $3,132, yield is 3.1% and payback is about 31.9 years. At 55%, net income is $5,322, yield is 5.3% and payback is about 18.8 years.

The gap between gross (6.6%) and net (4.2%) yield in this sample is 2.4 percentage points. It depends on your costs.

Typical mistakes

• Taking a developer's promise for a calculation. "Guaranteed" percentages do not replace your own calculation. Ask whether the figure is gross or net, and what occupancy and price per night it assumes.
• Counting occupancy by the peak month. Use the yearly average.
• Forgetting under-occupancy. The flat can stand empty longer than in your calculation. Run a scenario with occupancy below what you expect.
• Missing set-up costs. Furniture, repairs and listing set-up are not in the calculator.
• Missing tax. It depends on your status and on the rental format.
• Counting income in one scenario. Use at least three: cautious, middle and optimistic.
• Comparing yields from different sources. Their methods differ.
• Taking the price per night from an advertisement. It must be confirmed with data for the specific building.

Checklist

1. Find out which yield was quoted: gross or net.
2. Ask the seller in writing for the occupancy and price per night behind the figure.
3. Open the calculator on the object page and enter your own figures.
4. Calculate three occupancy scenarios.
5. Get the management company's terms in writing.
6. Find out the utility amounts and the service charge.
7. Ask a tax adviser about tax in your situation.
8. Check whether the complex allows short-term rental.
9. Allow for fit-out costs.

What to clarify with an adviser, a lawyer and a manager

• Whether the 5% rate applies to your rental format.
• How much the management company charges, and for what.
• What the utilities and the building service charge are.
• Whether the contract or the house rules allow short-term rental.
• How tax residency affects you.

We found no confirmed independent data on management company fees or utilities in Batumi. So these figures are not given.

Questions and answers

What is the payback of a flat? It is the years in which net income would cover the price, if conditions stayed the same. Real conditions change.

How does gross yield differ from net yield? Gross is calculated before costs and tax, net after them.

Can I rely on a yield from an advertisement? Only after checking it. Ask for the calculation and redo it with your own figures.

Where is the calculator? On the page of a new build in the catalogue, in the block "Daily rental estimate".

Does the calculator make a forecast? No. It is a sample calculation on your assumptions, and the block says so.

Read also

• How to assess a promised yield of a new build in Batumi
• Renting out an apartment in Batumi: short or long term