Garages may not be the most highly rated of investments, but for those who bought into the market a few years back, the return on investment have been outstanding.

Although the island is small, the road network is high density and compact and travelling across the island to different places daily generally requires car transportation. Parking does become an issue and therefor more garages are required.

A quick glance at Maltese roads you will see hat considering the population size, Malta has a very high rate of licensed motor vehicles. Central areas like St. Julians and Sliema are severely impacted by the challenging parking situation due to the density of the population in these areas. Coming home from work at the end of the day and having to drive around looking for a place to park can drive anyone mad, so renting a garage becomes a necessity.

Although garage rental investment may not be as profitable as flat rentals, investing in garages saves you a lot of money. This is because garages do not need to be furnished , do not need to have electricity and this of course saves you money from the onset. They also need far less maintenance

For those of you who are foreign first time want-to-be property owners in Malta and are hesitant to lay out too much money, maybe buying a garage will wet your appetite

If you are a little debt-shy and would prefer not to have to take out any loans, buying a garage for cash presents an superb opportunity to dabble in the property market.

Buy one or two garages and collect your rent, nothing could be easier.

A looking at garages for sale or rent on Facebook Marketplace show there is a bustling trade going on, even for parking spaces without the security or privacy of a lock-up.

Depending on area, or being near the busier parts of Malta, garages go for different prices. Staring at € 20 000 for a 1 car garage some garages deep in underground complexes, which one would expect to be available at a discount rate, still command respectable prices – a “one-car garage+storage” garage in Qormi, in basement level -2, can be bought for not less than €40,000.

However, real estate consultants seem far less enthused about the value of garages as an investment opportunity. Where apartments and houses are getting a rental of about 5% annually on purchase price, garages are getting about 3%. However the maintenance costs are extremely low, no water and electricity charge.

Of course, rent is only one part of the equation. The appreciation seen in garage prices has matched and in some cases outstripped that seen for residences.

Justin Camilleri, founder and CEO of Real Agents, tells BusinessNow.mt  says that garage prices have skyrocketed due to the ever-increasing number of cars and the introduction of hybrid and plug-in vehicles. These need charging, and the amount of public chargers is not close to enough to cater to them, so demand for garages increases

35 new cars added to Malta’s roads every day, coupled with an old-school mentality where residential property buyers want a garage with their unit, even if it’s a buy-to-let.

Unlike residential real estate, where a property’s residual cash flow is an important part of the investment equation, those investing in garages seem to be far more dependent on their appreciation – which has been substantial.