Malta » Market Report

Property has remained hot, whatever the season. The rise and rise in prices confirmed from side to side the property indices compiled by the National Office of Statistics surprised no one. They did add to the social mourn that prices are getting out of reach of those on lower and middle incomes. Less obviously the heady indices confirmed that there is an inconsistency which seems to challenge proper understanding.

There is a difference between supply and demand. The supply of empty properties should be looked at more closely. It is likely that in part it consists of structures which, despite the trend towards smaller housing floor space, are too unappealing, whether for first-time buyers, others who want to change house, or for those who wish to invest in a holiday home.

The island has a strong household property market and doesn't rely too heavily on overseas property buyers like some of the Mediterranean islands do, but at the same time those that do buy here play a good role in the economy overall. With good all year round temperatures enticing many buyers for the winter months as well as the summer and a warm welcome from the local population who nearly all speak English, Malta has been popular for some years among overseas property buyers.

Malta has an excellent business infrastructure tremendously well-equipped ports and Freeport, a well-developed manufacturing infrastructure, and has a relatively sophisticated, European business environment. The total length of the road network in Malta is 2,200 km. There are no railways or inland waterways.

Education in public institutions, including the University of Malta, is free.

In the interim a real estate investor could target the retiree rental market; Malta attracts many retirees during the temperate winter months all looking for long term lets to escape the harsher Northern European climate. A property investor who owns holiday lets and makes a good income from short-term, summertime letting can fill his properties through the winter as well in Malta albeit for a lower yield but it does mean that Malta has a year round rental market.

The summer time rental market are generally looking for villa type properties with pools, these properties are also the type of real estate most in demand from second homers and those looking to relocate to the island. An investor who holds such property stock can generally generate the highest rental yields and also attract the best property price growth annually.

International Property Brokers forecast is that the property prices of Malta will rise by more than any other EU country. The ongoing and future prospects for Malta’s property market are very positive certainly. Malta ultimately offers a very secure environment for a real estate buyer looking to make a decent income and see a steady increase in the value of his property benefit.