Studio or one-bedroom apartment in Batumi: what to choose for investment

Batumi has already attracted investors from various countries. The reasons are clear: real estate prices here are still lower than in many European resort towns, rental demand is high, and the market is actively developing. All this makes investing in Batumi real estate a clear and logical step for those seeking rental income.

Typically, the choice is between two formats: buying a studio and renting it out daily, or investing in a one-room apartment with the option of renting it out both daily and long-term.

There’s no one-size-fits-all solution. The format is selected based on budget, goals, and profitability expectations. In this article, we’ll explore how profit is generated, what determines the payback period, and who is most suited to each option.

Entry format and budget

A studio is a compact apartment without a separate bedroom, typically 25–35 square meters. This format is often purchased for short-term rentals. Many investors target this format, especially when considering a purchase closer to the sea.

A one-bedroom apartment consists of a separate bedroom and kitchen (or kitchen-living room). The area typically starts at 35–40 square meters. This option is more versatile: it can be rented to tourists, families, relocators, or used for personal residence.

The difference in overall cost is significant—a studio apartment is cheaper due to its smaller area. However, the price per square meter for studios and one-bedroom apartments is often roughly the same. The final price is higher simply because the area is larger. Sometimes, a one-bedroom apartment is even more affordable per square meter—it all depends on the neighborhood and stage of construction.

Demand and rental strategy

Studios are often chosen by short-term tourists. This is a quick rental format with frequent guest turnover. Income directly depends on occupancy and tourist flow.

In the last year, we’ve seen a shift in interest toward one-bedroom apartments. Guests prioritize comfort and a separate bedroom, especially for stays of a week or longer. Competition among studio apartments is fierce, so when purchasing for investment, it’s important to consider not only the location but also the management system. In most cases, it makes sense to work through a management company and purchase studio apartments in branded hotels.

One-bedroom apartments are easier to rent out outside of the tourist season. They are rented for several months at a time, reducing the risk of downtime.

Profitability of each strategy

A studio with a good location and high occupancy can generate a higher return on investment. However, this model is directly dependent on the season and tourist flow. If demand declines, so does the income.

A one-bedroom apartment typically offers a more predictable return. The return may be lower, but it’s easier to ensure a stable monthly income—especially with a long-term lease.

It’s important to understand: the profitability of apartments in Batumi cannot be calculated as «market average.» Before purchasing, you need to consider several scenarios—daily rentals, monthly rentals, and a combination of both. A competent specialist will perform these calculations at the outset, taking into account occupancy, management costs, taxes, and potential downtime. Only then will you know which strategy is truly profitable and right for you.

Payback period

The return on investment for real estate in Batumi depends on three factors: the purchase price, the rental format, and the stability of demand.

With active daily rentals, a studio can recoup its investment faster. But only if the property is regularly rented and not left vacant during the off-season.

A one-bedroom apartment typically has a slightly longer payback period. However, there are fewer sudden fluctuations in income, and it’s easier to forecast cash flow for the year ahead.

In other words, a studio apartment is a more dynamic model with the potential for higher returns, while a one-room apartment is more stable and predictable.

Who is each format suitable for?

The studio is suitable for those who:

– plans to rent out the apartment on a daily basis;

– understands that income will depend on the season and tourist flow;

– wants to enter the market with a smaller budget;

– ready to work with a management company or actively handle rentals independently.

A one-room apartment is suitable for investors who:

– rely on a more stable income;

– consider long-term leasing as the main format;

– want to own property abroad and, if necessary, use it for personal residence;

– have a large budget and are ready to invest more at the start.

What risks are important to consider in advance?

Any investment in Batumi real estate involves risk. Before purchasing, it’s important to understand not only the potential return but also the weaknesses of each strategy.

When purchasing a studio

Studio apartments are most often purchased for short-term rental in Batumi. This means income is directly dependent on tourist traffic.

High competition.

There are plenty of studios in coastal areas, especially in apartment complexes. Guests choose from dozens of similar options. To maintain occupancy, they have to compete on price, renovations, and service.

Depends on the season.

The bulk of revenue is generated during the warmer months. Tourist traffic declines in the fall and winter. Without a well-thought-out off-season strategy, revenue declines.

Downtime.

Even during peak season, a property may not be 100% occupied. Every day of downtime directly reduces the overall profitability of apartments in Batumi.

Faster wear.

Frequent guest turnover means more cleaning, more housekeeping, and repairs that wear out faster. These are additional expenses that must be taken into account when calculating the return on investment for real estate in Batumi.

When purchasing a one-room apartment

One-bedroom apartments in Batumi are often viewed as a more stable format. But even here, there are some nuances.

Larger purchase budget.

The overall cost is higher due to the size, which means a larger initial investment.

Longer payback period.

If the property is rented out long-term, the income is usually lower than with a daily rental model. Recouping the investment may take longer.

Risk of downtime when changing tenants.

While a long-term lease is more stable, finding a new tenant can still take time. During this period, the apartment generates no income.

Limited long-term returns.

Renting out for several months provides predictability, but rarely guarantees high annual interest rates. This should be taken into account if the goal is maximum return rather than stability.

How to choose?

A studio and a one-room apartment are different investment strategies within the same market.

The first is suitable for those who are ready to work with an active rental model and expect higher returns with good occupancy. The second is for those who prioritize stability and flexibility in the rental format.

Investing in Batumi real estate works when the format is chosen consciously and the figures are calculated in advance. And it’s this, not the type of apartment itself, that determines the actual return.

BD Realty will help you find the perfect property for your needs: a studio apartment for active rentals or a one-bedroom apartment for a stable income. Request a free consultation, and we’ll calculate the rental yield of apartments in Batumi specifically for your budget.