Commercial Real Estate for F&B in Batumi: Locations and Prospects
The restaurant business market in Adjara is undergoing another cycle of transformation. While investors previously mass-purchased residential housing, today the focus is shifting toward the business sector. Commercial real estate in Batumi is showing stable capitalization growth, outperforming even the popular hospitality segment in terms of yield.
Opening a café, restaurant, or coffee shop in Georgia's main tourist city is a strategy with high potential. However, 90% of success depends on the correct choice of location and the technical characteristics of the premises. In this article, we will analyze where to look for the best spaces and why professional transaction support is critically important.
The tourist flow to Georgia is becoming year-round.
Batumi has ceased to be exclusively a "beach season" city. Relocators, IT specialists, and "winter residents" create constant demand for quality service and diverse cuisine.
Commercial real estate in Georgia, especially in the HoReCa (Hotel, Restaurant, Catering) sector, brings the owner an average of 10–12% per annum in foreign currency when leased. If you plan to run the business yourself, profitability can reach 20–25%.
The main difference from the residential fund is long-term contracts. Tenants of commercial spaces invest in renovations and marketing the location, so they rarely move out after a year, ensuring the owner a stable passive income.
Top Locations: Where to Open a Restaurant
Batumi is heterogeneous. A location ideal for a wine boutique might be a failure for fast food. At our agency, we highlight three key zones with the highest traffic.
Old Batumi: Atmosphere and High Average Check
The streets around Piazza Square, Rustaveli Avenue, and Memed Abashidze Street are the "Golden Mile." The most solvent traffic is concentrated here. Premises here are expensive, but the average check in establishments is 2–3 times higher compared to the outskirts.
New Boulevard and the First Line
The district where many strive to buy a seaside apartment in Batumi possesses a colossal population density in season. Huge residential complexes (Orbi City, Alliance, etc.) generate thousands of potential customers daily.
Formats like "all-day breakfast," take-away coffee shops, and family restaurants are in demand here. However, it is important to consider seasonality: in winter, traffic on the first line decreases, and only conceptual establishments with a loyal audience survive.
Business Quarters and the Alley of Heroes
The area around the stadium and Bagrationi Street is being actively developed. This is the new center of business attraction. There are fewer tourists here, but many locals and office workers who need a quality business lunch and a place for evening meetings.
Technical Nuances: What is Hidden from View
Finding an ad on the internet is not enough. Often an object that looks attractive in photos is absolutely unsuitable for catering.
Critical parameters that our brokers verify:
Electrical Power: A full-cycle kitchen requires from 30–50 kW. In the old stock, this limit is often exhausted.
Ventilation: Routing the "candle" (exhaust duct) above the roof ridge is a mandatory requirement. In residential buildings, this often becomes a stumbling block with neighbors.
Premises Status: Transferring from residential to non-residential fund in Georgia is a possible procedure, but it is costly in terms of time and money.
Housing or Business: Comparison of Strategies
Many of our clients come with a request to недвижимость в Батуми купить buy real estate in Batumi for rental purposes. Usually, they consider residential studios. However, if the budget allows, we recommend diversifying the portfolio.
Let's compare two approaches:
Resale apartments in Batumi or new builds: Require constant management (check-ins, cleaning, minor repairs). High competition in the season dumps prices.
Commercial Premises: The tenant (business) does the renovation themselves, monitors the condition, and pays stably, regardless of whether July is rainy or sunny.
Investors who initially wanted to buy apartments in Batumi often change their decision in favor of street retail after consulting with our analysts. The entry threshold for commerce is higher, but there are fewer operational headaches.
Risks of Independent Purchase
The Georgian real estate market is transparent but has its pitfalls. Buying directly from a developer or owner does not guarantee the legal purity of the transaction for business purposes.
Owners often stay silent about communication issues or the fact that the building is slated for reconstruction. Furthermore, the best liquid objects rarely hit the classifieds boards — they are distributed through closed agency databases before even reaching advertising.
By working with us, you get not just walls, but a ready business asset. We conduct a full audit of the object, check for encumbrances, and negotiate better terms that are often unavailable to private individuals.
Conclusion
The F&B market in Batumi in 2025 is moving from quantity to quality. Those who choose the right locations and approach risk assessment professionally win.
If your goal is a reliable investment, contact professionals. We will select a premise that will work for you for years, whether it is a haute cuisine restaurant or a cozy coffee shop by the sea.
1. Can a foreigner buy commercial real estate in Georgia? Yes, Georgian legislation does not restrict foreigners in the right to acquire commercial objects. The registration procedure is as simple as if you decide to buy real estate in Batumi for living. You become a full owner with an entry in the Public Registry.
2. What is the payback period for restaurant premises in Batumi? The average payback period for a quality commercial object is 7–9 years, which is faster than in the residential sector. However, figures depend on the location. Premises on the first line, where investors also love to buy a seaside apartment in Batumi, cost more, but the rental rate there is significantly higher.
3. What is more profitable now: an existing business or a shell and core premise? It depends on your strategy. Resale apartments in Batumi are often sold with renovations, but commerce requires individuality. Buying a premise in a "black frame" (shell and core) condition allows you to design the project ideally for your catering technology. A ready-made business with renovation should be bought only after a thorough audit of equipment and ventilation.
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