The Outlook for 2024

The outlook for the Maltese property market remains positive. One added PLUS for the international investor is that you can own property in Malta without the need of residency. This aspect is very attractive for the buy-to-let market.Local and international investors, buyers and renters continue to be attracted to the safe environment, favourable tax jurisdiction and low running costs – not to mention the 300 days of sunshine and an English-speaking community.

The key factors influencing the market include :

  1. Low Interest Rates: Attractive interest rates of between 2.6% to 5% makes owning a home a reality.
  2. Economy: Malta’s steady economic growth has had a positive ripple effect on property values. The influx of international companies, especially in the tech and gaming sectors, has bolstered demand for both residential and commercial properties. Malta produced one of the EU’s strongest economic growths at 4%, driving demand for investment in this Mediterranean gem.
  3. Investment: Malta is a politically and economically stable country with a highly developed infrastructure and a well-regulated financial system, low taxes and quality of life making it an attractive destination for investors looking for a safe and secure place to invest their money.
  4. Incentives: Tax incentives and grants introduced in 2021/22 boosting property investment opportunities have been extended for 2024.
  5. Construction Costs: Pressure from the increase in construction costs may put further upward pressure on property prices
  6. Supply: The development and supply of new homes on limited available land has the  potential to drive up prices.
  7. Sustainability Focus: The government’s emphasis on sustainability is fostering demand for energy-efficient homes.
  8. Luxury Property: Spiked demand for luxury property from high-net-worth individuals through residency and citizenship-by-investment programs have been seen to drive up prices.
  9. Tourism and Rental Market: With its rich culture and scenic beauty, Malta attracts tourists year-round. This influx has nurtured a thriving short-term rental market, especially in key tourist zones
  10. No Inheritance Tax: Property passed down through generations remains untaxed, allowing families to preserve their assets without additional financial burdens.
  11. No Ownership or Wealth Tax: Investors can hold property without incurring annual wealth taxes.

 

As an Investor, Malta’s booming property market offers many exciting opportunities for South Africans in 2024.