Is it worth investing in studio apartments?

Is it worth investing in studio apartments? 🏙️💼

Studio apartments are one of the most accessible entry points into the Georgian real estate market. They attract buyers with a lower purchase price, easier management and steady demand from tourists and young renters. But like any investment, studios have pros and cons — and whether they suit you depends on your goals.

Who should consider studios?

• New investors looking for a simple, lower‑cost asset.
• Those aiming for short‑term rentals in resort cities or business travellers in urban centres.
• Investors who want to diversify with several small assets rather than a single large property.

Key advantages ✅

• Lower entry cost compared to larger apartments.
• Easier maintenance and renovations; fewer systems to manage.
• Flexible use: short‑term rentals for tourists or long‑term leases for professionals.
• Quicker turnover when the unit is market‑ready and well marketed.

Main risks ⚠️

• Seasonal demand in resort locations — high peaks and quieter off‑season periods.
• High competition in popular areas, which can pressure rental rates.
• Operational costs (cleaning, platform fees, utilities) can reduce net income.
• Smaller size limits tenant profiles and long‑term appreciation potential in some markets.

What to check before buying — practical checklist 📝

1. Location: proximity to the sea, centre, or transport hubs.
2. Layout: practical use of space and storage solutions.
3. Natural light and ventilation: important for guest reviews and long‑term comfort.
4. Soundproofing: crucial in busy areas.
5. Quality of finishes and utilities: avoid objects that require extensive repairs.
6. Furniture and appliances: turn‑key units rent faster.
7. Building management: reputation, fees and rules for short‑term rentals.

Rental strategies

• Short‑term rentals: good for tourist locations; requires active management or a reliable property manager.
• Long‑term leases: stable, lower management workload and predictable cash flow.
• Hybrid: combine long‑term contracts in low season and short‑term in peak months to smooth income.

Financing and legal aspects

Foreign buyers can purchase property in Georgia; however, ensure clear title, absence of encumbrances, and correctly registered ownership. Mortgages are available for residents and non‑residents under various conditions. We recommend consulting a lawyer and working with an experienced local agency to reduce legal and financial risk.

Estimating returns — realistic approach

Avoid overly optimistic projections. Build conservative, moderate and optimistic scenarios, accounting for vacancies, maintenance and management fees. As an example, many investors model different yield ranges for short‑term vs long‑term rentals — use examples as guidance, not guarantees.

Typical mistakes to avoid

• Buying because you like the interior without confirming market demand.
• Underestimating operating expenses and vacancy periods.
• Trying to manage remotely without a reliable local partner.

Practical steps to start

1. Define your objective: rental income, capital growth, or a mix.
2. Choose target locations — consider Batumi for resorts or central Tbilisi for professionals.
3. Run cash‑flow scenarios and stress tests for off‑season periods.
4. Verify legal documents and building status.
5. Prepare the unit for the market with professional photos and clear rules.

If you want help finding suitable studio apartments and modelling expected income, we can assist. Browse options and start your search at https://buyhome.ge/en or https://buyhome.ge/en/search.

Contact our team for a friendly consultation — we’ll help you choose the right studio and prepare realistic financial scenarios.