Why Small Apartments Remain Batumi’s Main Investment Product

The central argument

About six of every ten apartments sold in Batumi are 35–50 square metres. In H1 2026, this category represented 60.1% of transactions, compared with 32.1% for 51–80 square metres, 7.0% for 81–150 square metres and only 0.8% for very large units. Batumi’s dominant product is not a spacious family home but a compact investment unit.

A small apartment in Batumi is no longer only a housing size. It has become a standardised investment product.

 

A lower entry ticket

At the June 2026 completed-primary average of $1,960 per square metre, a 35–50 square metre apartment costs roughly $68,600–98,000. At the $1,497 average for newer secondary projects, the range is about $52,395–74,850. A 51–80 square metre completed-primary unit would cost roughly $99,960–156,800. At the same price per square metre, a midpoint 42.5-square-metre unit requires about 34.6% less capital than a 65-square-metre unit.

A format built for tourism

A studio or compact one-bedroom fits couples and short-stay visitors without charging them for unused space. It is cheaper to furnish and clean and sits between a hotel room and a full residence. Yet performance depends heavily on seasonal occupancy and on how many similar units compete within the same building.

A format built for developers

Smaller units let developers create more saleable contracts from the same floor area and keep the total ticket accessible even when the price per square metre is high. The format is easy to market with furniture, rental management and projected income. But buildings designed for high-turnover investment units create heavy demands on lifts, common areas, security and professional operations.

Standardisation creates its own risk

The 60.1% share demonstrates demand and growing sameness. If most new projects keep producing identical compact units, the most popular segment will also face the strongest competition. In Q2 2026, average daily rent fell 4.2% year on year while completed-primary prices rose 9.8%. More interchangeable supply can deepen that divergence unless tourist nights expand at the same pace.

Liquidity is conditional

A lower total price broadens the resale audience. But an owner in an unfinished development may compete directly with the developer’s discounted inventory and instalment plans. Liquidity becomes real only when the building is complete, title is clear and the unit has a credible operating history.

The conclusion

BTU researchers conclude that the small apartment dominates because it lowers the entry ticket, fits tourist demand and improves developer sales economics. Its success is structural, not merely a matter of taste. But as thousands of similar studios enter the market, competition shifts to price, occupancy and management quality. The best small apartment will be the one with multiple uses and operational differentiation-not simply the cheapest unit in the building.

Sources

  • Galt & Taggart – „ბათუმის საცხოვრებელი უძრავი ქონება: 2026 წლის II კვარტლის მიმოხილვა“, 14 აგვისტო 2026. User-provided research; no direct public URL was supplied.
  • Georgian National Tourism Administration – Tourism Statistics and Research – https://gnta.ge/%E1%83%99%E1%83%95%E1%83%9A%E1%83%94%E1%83%95%E1%83%94%E1%83%91%E1%83%98
  • National Statistics Office of Georgia – Work on expanding the Residential Property Price Index – https://www.geostat.ge/en/single-news/3730/mission-of-the-international-monetary-fund-at-geostat
  • National Bank of Georgia – Responsible mortgage assessment guidance – https://nbg.gov.ge/en/media/news/the-national-bank-of-georgia-develops-an-educational-video-on-mortgage-loans