Old Houses vs New Projects Near the Center: What’s Better for Rentals

Introduction

Choosing a rental property near the city centre often comes down to one question: buy into an older building with character or invest in a modern development with amenities? Both options can work well — the right choice depends on your goals, budget and how involved you want to be in management. 🏙️

Why central location matters 📍

Being close to transport, workplaces and social life increases tenant demand. However, "central" can mean a lively street or a quieter block near parks and cafes. Define your target tenant first — that will guide your choice.

Old buildings: advantages and drawbacks 🏚️

Advantages

• Often a lower purchase price, leaving room for value-adding renovations and improving yield.
• Distinct layouts and higher ceilings in some older units attract tenants who value space and character.
• Renovated units can command a premium on rent and stand out in the market.

Drawbacks

• Hidden maintenance costs: pipes, wiring and common areas can need upgrades sooner than in a new building.
• Potentially higher utility costs due to less efficient structures, which may deter budget-conscious tenants.
• Legal check is essential: shared maintenance debts or land status may create complications.

New developments near the center: advantages and drawbacks 🏢

Advantages

• Modern engineering, insulation and systems reduce running costs and improve tenant comfort.
• On-site services (security, parking, communal spaces) increase attractiveness and justify higher rent.
• Less immediate maintenance worry in the early years, which simplifies management.

Drawbacks

• Higher entry price and competition with similar units in the complex.
• Some new projects target upper segments; if local demand doesn’t match, vacancy may last longer.
• The developer's or property manager's actual service quality matters and can vary.

How to compare for rental profitability ✅

• Tenant profile. Students, young professionals and corporate tenants have different priorities: price, proximity, or quality/service.
• Total cost of ownership. Look beyond purchase price to renovation needs, utilities and management fees.
• Time to stable income. Cheaper units needing renovation may take more time but yield better returns; new units rent faster but start with a higher investment.
• Flexibility. Consider if the unit can be adapted for short-term stays or subletting, and how zoning and building rules affect that.

Practical tips for investors 💡

1. Do a full legal and technical check for older buildings before buying.
2. Build a maintenance reserve into your budget to avoid surprises.
3. Choose finishes that appeal to your target tenant while being durable and easy to maintain.
4. Decide if you prefer steady long-term leases or higher management-intensity short-term rentals.
5. Use a local property manager if you cannot supervise the property yourself.
6. Evaluate the street and neighborhood amenities as much as the building itself.

Typical scenarios

• Tight budget + willingness to renovate → a well-located old apartment can offer strong returns.
• Want low hassle and quick occupancy → a modern development with services may be the better path.
• Diversification strategy → combining both types spreads risk and captures different tenant markets.

Conclusion and next steps 📌

There is no single right answer — it depends on your investment horizon, risk tolerance and how actively you want to manage the asset. Carefully compare running costs, tenant demand and the micro-location.

If you’d like, we can evaluate specific properties and prepare a rental yield estimate tailored to your goals. Browse current offers on our listings: https://buyhome.ge/en/apartments or start a search here: https://buyhome.ge/en/search

Contact BuyHome — we will help you choose the right property and guide you through the process. 🤝