The Malta property market is on its way to become one of the fastest growing markets in Europe. This is because unemployment rates are at an all time low, there is an increase in transcontinental property purchasing, a high English speaking populace, a stable GDP rate and finally development projects are taking Malta by storm. Now is the time to invest in the Malta property market.
The real estate business is up and coming since gross domestic product stood at 7.2% in the last quarter for the first time ever. As a result, property prices have increased as the average penthouse costs €900k and villa prices increased by up to 41% over a three-year period. This comes as no surprise since Malta one of the most advanced European economies to date.
As prices increase, so does the demand. In theory, demand must meet supply.
Accordingly, developers are impeding most of the country’s landscape as cranes dominate popular districts of Malta. New development projects are under way such as Q2 in Tigne Point, Fortina and the City centre in St George’s bay. Overall, Paceville alone features nine development plans, Sliema’s projects are centred in the Tigne Peninsula and Qawra projects include a controversial 19-story high-rise building. These developments are a mixture of commercial and residential properties. Developers are pitching their forks into the growing economy as more people opt to buy on plan, even though some of these developments won’t be completed until 2019.
Another beneficiary of the Malta property market is the promise of sale where you can secure a property with a 10% deposit, similarly to the UK. This solidifies a buyer-vendor relationship whilst estate agents further strengthen the bond as the medium point where, developers can supply them with developments. Vendors and landlords can work with estate agents to invest in development projects.
Many are shopping for properties in pursuit of buy to let returns, whilst generating a healthy yield and the capability to repay mortgages in record time. This is a great return investment for those looking to buy properties as they can rent them both domestically and internationally.
One could argue the property market may overheat however, the rising prices and higher quality of living means a fruitful property purchase gives way to robust portfolio potential, strong enough to meet the demands of many in the near future.
Malta is an attractive destination for foreign investment as newcomers are purchasing and renting properties. The passport scheme helps tourists gain residency rights. Known previously as a popular holiday destination, Malta has ascended into a home for many. Not to mention a staggering 88% of the Maltese people speak English, attracting far more tourists.
Malta is nothing short of a healthy economy since unemployment rates stay at just 4.2%. It is the third lowest country with such rates making it a model service nation. As more people enter employment, the standard of living increases and rental prices have almost doubled in the last four years. However, low-interest rates increase lending possibilities, making housing more affordable. Also, stamp duty regulations lower financial risk for first-time buyers, Thereby creating a snowball effect of individuals investing in the Malta property market.