DOI kodi: 10.52340/ekonomisti.2026.02.22

Expanded Summary

In order to optimize the management of municipal real estate, considering its specific characteristics and operational complexities, a comprehensive and strategic approach is essential. Key recommendations are as follows:

• Develop a holistic real estate management strategy, that defines objectives, expected outcomes and performance indicators, ensuring systematic oversight at every stage of property rights execution;
• Develop detailed medium and long-term plans for asset formation, management, and allocation, specifying concrete activities, responsibilities, timelines and resource requirements;
• Conduct systematic and data-driven analyses to identify properties critical for municipal infrastructure development, public service delivery, citizen needs fulfillment, business ecosystem enhancement and sustainable revenue generation. Subsequently, formalize the inclusion of these assets into municipal ownership based on empirical findings.
• Evaluate municipal properties to identify functionally underutilized or inactive assets, ensuring their potential is maximized.
• Assess the potential of municipal assets to stimulate business development, attract investment, and generate revenue, using empirical evidence to guide optimal allocation and utilization strategies.

Moreover, to enhance stakeholder engagement, improve competitive conditions, and maximize revenue generation in the process of managing and allocating municipal property, we consider it important to:

• Maximize the use of multiple information dissemination channels, including official websites and social media, ensuring transparency and regular updates;
• Introduce additional procedural mechanisms to ensure that stakeholders are adequately informed and actively participate in municipal property allocation processes;
• Adopt allocation modalities that guarantee competitive, transparent and accountable decision-making environments;
• Consider conditional or performance-based property utilization options in the decision-making process to enhance efficiency and impact;
• Introduce additional monitoring and control mechanisms, in line with best practices, to safeguard municipal and citizen interests while optimizing revenue mobilization into the local budget.

Periodic review of the legislative framework, aligned with the unique economic characteristics of Batumi Municipality, is essential to support effective governance, improve property management, and attract investment.

Decision-making regarding asset allocation should be guided by rigorous cost-benefit analyses, encompassing both ownership-related costs and potential revenue streams. Priority should be given to properties with the greatest potential to enhance local business development, determining the most advantageous utilization strategy-whether immediate fiscal gain, long-term revenue, or stimulation of the local business environment.

Targeted and strategic management of municipal assets requires the explicit definition of their functional and economic purposes, ensuring the potential for public use and sustainable urban development. In this context, public-private partnerships (PPPs) emerge as a particularly effective instrument, especially in initiatives where municipal assets are complemented by private-sector capital, technical expertise and innovative solutions. Achieving these objectives requires the creation of a transparent, flexible and investor-oriented economic and legal environment, fostering optimal asset utilization, maximizing fiscal returns and delivering long-term socio-economic benefits to both the municipality and its citizens.