Malta property, AGAIN in 2019, proves to be the preferred investment for investors looking for good returns on investment.
It’s an exciting time invest in Malta’s real estate right now, as the country has some lucrative projects in the pipeline. A move to refurbish existing areas ,that are sitting are prime land ,has definitely aroused investor interest.
Property prices in Malta are still rising and were felt across all property types.
- Apartment prices have increased for the 6th year running and rose by 11.02% on average during Q1 2019.When adjusted for inflation, prices were up by 9.7%
- . Terrace houses prices rose by 15.34% (13.96% inflation-adjusted)
- Maisonettes prices rose by 7.82% y-o-y (6.54% inflation adjusted)
- “Other houses” consisting of townhouses, houses of character and villas, experienced the highest price increase of around 15.9% ( 14.58% inflation adjusted)
Many investors have started looking at rebalancing their portfolios and found Malta’s 2 fold property market a secure investment, that will retain and appreciate in the long term, while earning a steady income stream from rental.
Malta’s buoyant house prices over the last 5 years have been supported by a number of factors
- Malta’s property market was always underrated but has now reached its worth
- Low interest rates: Mortgage rates have hovered near the 3% since 2008.
- Buoyant disposable income: This comes from strong employment growth
- Rising number of foreign workers: Economy growing at a rate of 5-6% with Malta needing 10 000 more foreign workers in the next year.
- The up swing in property prices are also attributed to the various Residency and Citizenship programmes which requires either a property purchase or property rental.
The rental market has enjoyed a boom over recent years. Many factors contribute to that.
- IGaming, Pharmaceuticals and financial services: There’s no denying the impact of these sectors in Malta. This new business boom has had a positive impact on the rental market as foreign employees move to the island and look for rental accommodation. Expat workers for the these markets account for 40% of the local rental market.
- Malta’s comfortable high quality lifestyle have always seen cheaper rentals than the rest of Europe, but as demand for available good quality accommodation increases and supply not keeping up, rentals have seen superb growth.
- Tourists: Malta is popular with tourists from around the world, especially the UK and Europe. The holiday rental market too has seen enormous growth since Malta has been selling itself as a superb holiday destination
There are essentially two aspects to buying property in Malta. The first is to invest in property without the need for residency, purely for a second home or for investment purposes. You will be able to find excellent prospects from R 3 to R4 million, far less than trying to buy a holiday home on the Atlantic Seaboard.
The second aspect is buying a property which forms part of your application for Residency or Citizenship. Here a minimum price requirement is needed for the purchase of property, depending on which residency programme you apply for.
Original Articles: Global Property Guide