Why advertising and market data show different figures
A buyer in Batumi often sees two numbers. Short-term-rental advertising shows 10–13% net. In Galt & Taggart’s 2025 review, Batumi’s market benchmark is 7.4%, after 8.8% in 2024.
This is not simply a case of advertising lying and a report being right. They are different ways of calculating. Advertising often assumes peak season and a strong operator; the market benchmark reflects the city-wide picture.
Below we show where the percentage points go: vacancy, management, tax and property classification. At Partner Estate, this is the fifth key check before recommendation.
Where “10–13% net” comes from
The advertised 10–13% short-term-rental yield usually relies on five assumptions: a strong operator, peak season stretched across the year, no vacancy, management deducted later and tax left out altogether.
A strong operator is not an average operator. July and August are not the whole year. In a tourist area, low season changes the annual result.
Then come management, cleaning, maintenance, utilities and platform fees. Tax comes last. A residential apartment and an aparthotel are calculated differently here, especially after the 2026 Ministry clarification.
Each assumption can be explained on its own. Together, they create the gap.
What market data shows
In Galt & Taggart’s 2025 review, Batumi rental yield is 7.4%, after 8.8% in 2024. This is a city benchmark, not the result of a specific apartment. The decline points to oversupply risk.
In its July presentation, TBC Capital expects real estate yields to remain around 8% in 2026, while also noting continued rent correction. The message is the same: a market benchmark is useful, but it does not replace a property-level calculation.
TBC Capital also expects 2026 sales growth of 7.1% and price growth of 5.6%, while noting continued rent correction. This supports the broader market context, but does not remove the need to calculate costs, vacancy, tax classification and exit scenario for a specific property.
Recov shows May transactions. The average new-build price was USD 1,323 per m², up 8.7% year-on-year. This is price growth, not rental yield. Foreign buyers represented 49% of transactions and 59% of annual growth.
Geostat records 2.7 million international visits to Adjara in 2025. This confirms short-term-rental demand, but does not show occupancy for a specific apartment.
These sources help explain the market, but they do not value a specific apartment.
How the gap arises mathematically
Illustrative example: a $150,000 property advertised as 10% net STR. Pitch math: annual rental gross = $150k × 10% = $15k.
A realistic calculation starts with vacancy. At about 60% annual occupancy, USD 15k becomes USD 9k. Management and operating costs of roughly 25% are then deducted, leaving about USD 6.75k.
Rental tax at 5% is USD 450. The net result is about USD 6.3k, or roughly 4.2% on a USD 150k property. This is what one apartment can look like after the basic deductions.
Exit tax is added to total return if the property is considered for sale within several years. Residential: 5% capital gain, 0% after 2 years when conditions are met. Aparthotel after the Min Finance ruling of 2026: 20% commercial capital gain, no 2-year exemption if the unit was rented.
Illustrative parameters only. Actual object-level calculation uses current rates, current occupancy assumptions and the property’s legal classification.
How to calculate yield for a specific property
Object-level yield calculation requires seven parameters: property specifics, buyer goal, realistic occupancy benchmark, operational cost stack, tax classification, holding horizon and stress scenarios.
We do not produce one percentage. We calculate a range: base, downside and upside scenarios. The downside case includes vacancy, oversupply risk and higher management costs.
This is Partner Estate’s fifth key check: yield and liquidity.
Three illustrative profiles
Scenario A — short-term rental in a coastal new build
A one-bedroom new build in the USD 130–170k range. Advertising shows about 10–11% net. With realistic occupancy, the model more often produces 5–7%. Active management is required, and the result depends on tourist flow.
Scenario B — long-term rental in a residential district
A one- or two-bedroom apartment with residential classification. Long-term-rental advertising often shows 6–7%. A realistic model is about 5–6%. Management is simpler, the tenant more stable and seasonality lower.
Scenario C — short-term rental in an aparthotel
A coastal new build with aparthotel classification. The annual rental model may resemble Scenario A at about 5–7%. The picture changes at sale: if the unit was rented, gain may be taxed at the 20% commercial rate.
Comparing the profiles
All three profiles often produce 5–7%. An aparthotel is not automatically off the table, but its classification must be known before the transaction and included in the calculation.
Common questions about yield
Why does advertising show 10–13% net if the market benchmark is 7.4%?
Advertising often relies on peak season and a strong operator. Vacancy, management costs and tax have not yet been deducted. The Galt & Taggart 7.4% figure is a market-wide benchmark. The gap comes from the combined assumptions, not one error.
Is the Galt & Taggart 7.4% figure net or gross?
It is Batumi’s market-wide benchmark for 2025: 7.4%, after 8.8% in 2024. The methodology is described in the source. A specific apartment may perform above or below it depending on price, location, costs and rental model.
How does the Ministry aparthotel clarification affect the result?
There is no direct effect on annual rent. The difference appears at sale. If a property is classified as an aparthotel and was rented, gain may be taxed at the 20% commercial rate without the two-year exemption. Over a 2–5 year horizon, an aparthotel’s total result may therefore be lower than a residential apartment’s.
How does Partner Estate calculate yield for a specific property?
We start with the property, not a percentage: price, location, buyer goal, occupancy, costs, tax classification and holding period. The result is not one number but a range across several scenarios. At Partner Estate, this is the fifth key check before recommendation.
What happens to short-term rentals if tourist numbers fall?
According to Geostat 2025, Adjara received 2.7 million international visits. This is the demand base for short-term rentals. If tourist flow weakens, short-term rentals react faster than long-term rentals. Residential districts have a different demand base: local residents and foreigners staying long term.
Registered benchmark, specific property, honest math
Batumi yield is not one number. There is a market benchmark, a specific property and scenarios that test what happens under poor conditions.
A property advertised at 10–13% may show 4–6% under realistic assumptions. This does not always mean deception. Often it simply uses a different methodology.
Partner Estate calculates the yield of a specific property before recommending it. If the result does not match the buyer’s goal, no recommendation is made.