Investing in Tbilisi Real Estate: Studio vs 1+1 Apartment — Which Is More Profitable for Investors

The Tbilisi real estate market is one of the fastest-growing in the region. The city continues to expand its infrastructure, attract tourists and relocants, and see consistent growth in rental demand year after year. All this makes real estate investment in Tbilisi one of the most attractive opportunities for private investors.

Against this backdrop, one common question arises: should you invest in a studio or a 1+1 apartment (bedroom + living room)? The two formats may look similar in function, but they differ in strategy, investment level, and profitability. To determine which option suits your goals best, it’s important to compare not only their prices but also their income potential, rental models, and risk factors.

This article breaks down the key differences and helps you choose the right option for your investment strategy.

How Much Do Studios and 1+1 Apartments Cost in Tbilisi?

In recent years, Tbilisi has seen a surge in both compact studios and more spacious 1+1 apartments — the two most popular investment formats on the market.

A studio apartment in Tbilisi typically measures 30–35 m² and is easy to rent out short- or mid-term. The entry threshold is relatively low ($45,000–$55,000), making studios an ideal option for investors who want to start small and see quick results.

A 1+1 apartment in Tbilisi offers more comfort for both living and renting. With an average size of 45–55 m² and prices ranging from $80,000–$90,000, it requires a higher investment but offers better liquidity and more stable income. This format is often chosen by those aiming for long-term rentals or planning to benefit from property appreciation.

In short, a studio is a fast-return investment, while a 1+1 apartment is a long-term, strategic choice.

Which Format Brings Higher Returns

The main difference lies in how income is generated.

Studios tend to perform best during peak tourist seasons. With daily rates around $40–$60 and average occupancy of 70%, annual rental yields reach 8–10%. For mid-term rentals (1–6 months), often preferred by relocants or professionals on assignments, the average rent is around $500–$600 per month.

1+1 apartments attract a more stable tenant base — families, freelancers, and IT professionals. They are typically rented long-term (6+ months) at $700–$900 per month. These properties have little to no seasonality, maintaining consistent occupancy year-round and yielding around 7–9% annually.

In other words, studios generate higher short-term profits but require active management, while 1+1 apartments provide steadier, year-round income.

Investment Scenarios: Which Format Suits You Best

Investment strategies in Tbilisi have become more deliberate. Whereas a few years ago investors bought whatever was available, today purchases are made with specific goals in mind.

Studios are ideal if you:

• Have a budget under $60,000

• Prioritize resale after construction or high ROI from short-term rentals

• Are ready to actively manage the property or delegate to a management company

1+1 apartments are better if you:

• Aim for mid- to long-term rentals

• Prefer steady, low-volatility income

• Want to diversify your investment portfolio

• Plan to use the property for your own living in the future

In numbers:
– A studio generates about $6,000/year on a $50,000 investment — roughly 12% ROI.
– A 1+1 apartment generates about $8,000/year on an $80,000 investment — about 10% ROI.

While the gap isn’t huge, the difference lies in the nature of the return: studios deliver faster payback, while 1+1 apartments offer more reliable long-term gains.

Where to Buy

Location directly impacts profitability.

Studios perform best in areas with high tourist traffic and easy transport access — Saburtalo, Avlabari, and Vera. These zones offer strong short-term demand and good resale potential.

1+1 apartments are more suitable for established residential areas with developed infrastructure and long-term rental demand — Vake, Dighomi, and again Saburtalo. These neighborhoods attract IT professionals, families, and relocants who rent for a year or longer, ensuring stable occupancy and minimal downtime.

Conclusion: It Depends on Your Strategy

Both studios and 1+1 apartments have solid positions in Tbilisi’s rental market. Each format works differently: studios generate quick returns with active management, while 1+1 apartments offer stability and long-term profitability.

The key is not just to buy a studio in Tbilisi but to understand which investment scenario will bring you the greatest benefit.

BD Realty helps investors calculate returns, choose optimal locations, and develop personalized strategies based on their budget and goals.
If you want to know which is more profitable — a studio or a 1+1 in Tbilisi — submit a request and get your personalized investment plan.