With worrying world events such as the war in Ukraine, spiralling food prices and on-going pressure on valuable energy resources, we have seen the knock-on effect of increasing costs even here in Malta. According to Tradingeconomics.com, Malta’s annual inflation rate increased just like many other countries across the globe in just a few months. Consumers are witnessing the outcome of this daily with an increase in the price of most consumer goods, even those most essential. This has led to some households that are under pressure having to juggle their budgets in order to retain standards they have come accustomed to enjoy.
Luckily, the house price index for Malta remains relatively unaffected by all of this, with the years of 2019 and 2020 seeing inflation-adjusted rise in house prices of 1.23% and 4.82% respectively, according to the Central Bank of Malta as per the Global Property Guide. For the first quarter of 2022 this picture looked even rosier as house prices - according to the House Price Index - rose by a very healthy 6.7% for the period alone!
Malta’s culture of investing in property has been unabated for generations now and families are known to assist younger members with deposits in order to buy their first property. This assures that first-time buyers in Malta get onto the property ladder sooner than their counterparts in other countries and this is further encouraged by concessions and incentives from the Maltese government. Owning a property rather than renting in Malta and making sound investment choices when it comes to local real estate has created secure generational wealth for many families. This once again proves that investing in local property is indeed “as safe as houses”, as it has a long, proven track record of being an excellent investment choice providing a safe hedge against inflation. Tangible assets such as property offer extremely effective protection against inflation due to the fact that a property’s value increases during times of monetary devaluation. Keeping money in the bank becomes an option that few deem wise. Over time, the capital appreciation of a property that has been bought wisely is simply unbeatable.
If you want to make an informed decision regarding where to find the best real estate investments on the island and see your money grow, speak to the property professionals at Homes of Quality. All our specialists have their fingers on the pulse of the market: they know their areas, they know the properties on offer and will give you unbiased, sound advice on the best options available that meet your requirements and expected returns. With more than 50 years of experience and being part of the Frank Salt Real Estate Group, there is no-one better or more qualified than us. Visit us at 211 Tower Road, Sliema or call us on (+356) 2277 0620 or email firstname.lastname@example.org