Foreign investors as well as savvy locals have been clamouring to get their hands on properties in Malta for good reason. It does not seem to matter whether it is off-plan, new-builds, resells, apartments, farmhouses, houses of character or townhouses.
The most popular areas are of course Sliema/St. Julian’s, San Gwann, Pembroke, Madliena and Swieqi as is nearly always the case. People that are in the market for owner-occupied homes want properties that offer a good measure of outdoor space as this has become an important prerequisite due to the legacy of the pandemic. Large terraces, gardens, courtyards and big balconies are brilliant assets for those lucky enough to own a property which includes this and buyers are prepared to pay a premium.
With second or investment homes that are rented out or only utilised during breakaways or holidays, those with views and proximity to the beaches and tourist attractions are always in demand. Due to the government’s brilliant incentives available to first-time buyers coupled with a reduction in stamp duty, the market has been extremely active for both buyers and sellers. We also see a demand for new apartments in centrally located areas, historic homes in the 3 Cities and Valletta, but as stated either access to outdoor space or views are always on the list of demands.
Let’s look at a recap of the latest figures* available for Malta property:
House prices increased 2.3% year-on-year in March 2021, preceded by 5% for the previous quarter. The reference to year-on-year is updated every 4 months and started with March 2001 to March 2021, resulting in an average, realistic and very positive growth of over 5.1%.
The biggest increase happened in June of 2004 with an astounding growth/increase of 36.7% for that period! Although we have seen contractions as well during this period, especially the year after the global financial crisis of 2008, we have seen nothing impacting negatively on the market during the global pandemic. In actual fact, Malta’s property market has seen demand and sales increase during this period proving once again that our little rock is not only resilient, but irrepressible when it comes to the belief in investing in property.
With countries opening borders slowly and us about to welcome safe mass tourism back to our beautiful islands, we have no doubt that Malta’s sought-after property investment market will be bolstered by the millions of tourists who realise they want and need to live, work and retire here.
With the demand and price increases for existing properties unstoppable on the up and up, we at Homes of Quality can only vouch that the past year has been a very busy one indeed. If you want to get your slice of the action, do it soon as we are about to see a very large, new wave of eager buyers and investors entering the picture which will place more pressure on availability and stock even further.
· Data from https://www.ceicdata.com/en/indicator/malta/house-prices-growth