If we look at the advice issued by investment specialists from global financial centers such as Wall Street or London, some of these leading figures in the world of finance advise investors to go for precious metals such as gold in times of doubt… but the latter is also dependent on daily fluctuations of world markets which are beyond the control of any local property buyer or seller. That said, we have to point out that it is a wise decision to spread one’s investment portfolio at all times to include a variety of commodities, as it is a safer option: never put all your eggs in one basket.
On the other hand, what counts in Malta’s favour is its real estate track record. The local market has shown that it can compete, if not outpace, most other investments even on a global scale when it comes to a return on one’s investment. Here are some data to support this:
- Malta’s property market saw a significant growth of 10.83% (9.51% after being adjusted for inflation) for the first quarter of the year in 2019, according to the Central Bank of Malta.
- For the years 2000 to 2007, the local property market experienced very strong growth with our overall house price index rising by a phenomenal 78.9% (53.4% after being adjusted for inflation)!
- Even during the world financial crisis of 2008, Malta’s real estate market fared better than most and was quickly back on the road to recovery.
- On average and to even things out, Malta’s property market saw an average growth rate, year-on-year, of 5.4% from March 2001 to Jun 2020.
(Information sources for the above are from https://www.ceicdata.com/en/indicator/malta/house-prices-growth and https://www.globalpropertyguide.com/Europe/Malta/Price-History )
These figures show a steady and healthy long-term growth rate over a period of time, which is exactly what investing in real estate is the world over. Any wise property investor worth their salt knows that property starts yielding positive returns after circa 3 years and then only increases from there!
Malta property has stood the test of time and has always been the go-to investment during times of trouble, but we have to keep in mind that it, like any other markets, this is subject to the rule of demand and supply. At present, due to Covid-19 and its effects on the islands, there is a lower demand for rental properties due to the shortage of foreign workers and what is now only a trickle of foreign tourists, but this is slowly stabilising and will no doubt pick up when we either eradicate Covid-19 or get an effective vaccine and things return to 'normal'.
When it comes to the residential sales market, we saw in the middle of the pandemic, during June this year, that the Maltese islands recorded the highest ever number of applications for registration of ownership of property ever in one single month! This speaks volumes of the support and belief our Maltese have in real estate and its ability to endure and survive as a long-term, safe investment option.
Together with Malta’s government who supports promoting a dynamic, pro-active approach to attract investments in technology, banking and wealthy global investors through its residency programmes, ordinary citizens will no doubt continue on the road to success and wealth through real estate investments.
Homes of Quality is part of the Frank Salt Property Group which has been around for more than 50 years. With this kind of experience, history and knowledge of Malta’s property market built over this past half a century, we can confidently say that the best time to buy and sell property in Malta is always now!