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Is it possible to time the Malta property market?

Historically, the Malta property market has always proven to be a robust and sound investment. Many have diversified their investment portfolio to also include property and to my mind, I don’t think I know of anybody who regrets it. Not many local investment instruments can boast of a stable and continuous growth graph.

In fact, publically available data through the national statistics office shows a very positive sentiment towards the property market over the decades. Even throughout the worst years of the European economic crisis, most property types and locality prices made it through the storm unscathed.

Many investors try to time the market in order to maximise their return and the question “Is it the right time to buy?” frequently comes up. If historical data is anything to go by the answer is “No” because yesterday’s price was better. However, given the steady line of growth in property values and prices, today’s price is probably more attractive than tomorrow’s and hence the answer is “Yes”.

The following are a few suggested practices that may increase your chances of making a sound property investment:

Ensure the price is right

Prices in such a booming economy can vary considerably in the short term. It is important to compare like with like. Views, condition and finish of property, parking and garage availability, the immediate surroundings and development in the area all impinge on the value and price of a property. A professional Malta real estate agency can guide you as to what has been sold in the recent past in the areas you are looking into and at what prices.

Location, Location, Location

Investing in a prime location is always a safer bet. Some locations such as Sliema and St. Julians have remained highly desirable even when the market has been put to the test. They also have an attractive price growth rate and can also yield some good rental return due to their location. Take this excellent Sliema Penthouse, for example, boasting amazing views of the Valletta skyline: 

Sliema Penthouse for Sale

Property with Valletta view

Cost of works

Ensure you get professional advice on the costs to carry out any works to bring the property up to your standards. Prices vary considerably from country to country and no assumptions should be made. A local architect is possibly the best person to provide you with a correct estimate of costs. Cater for unforeseen surprises. A 20% buffer is suggested by our specialist estate agents.

Buying off plan is generally advantageous

It is widely accepted that the prices of properties being sold off plan are better priced since they take buyer risk and time to build into consideration. If you are in no rush to make use of the property, this may be a good option.

Quality and unique propositions

Some properties are very particular, unique and sought after. Demand and supply obviously play a role in this market like in any other and prestigious property for sale are unlikely to suffer price volatility in normal economies.

If it’s the right property, buy it

Don’t keep searching and hoping for the better than perfect property to come your way. Whilst rushing into decisions is not recommended, if all or most of your wish-list boxes have been ticked and the price is within your budget, then go ahead and buy. Overthinking in this market costs money.

The above are but a few key markers that any property investor or buyer should keep in mind when purchasing a property. Timing any market is difficult and hardly reliable. Sticking to certain guide rules should help in making your decision a calculated and well thought out one. Get started by viewing our latest quality properties available right now in Malta.