Published on 12 November 2005 at 04:12 pm
Filed under: Europe:- Malta Property Guides » Malta Investment Property Potential
Malta is an incredibly popular Mediterranean island destination and property investment opportunities abound in Malta’s real estate sector, particularly for those seeking to target the retirement and tourism markets.
The long term profitability of property assets held in Malta is almost guaranteed because of two key facts. Firstly you have the country’s geographic status as an island! Simply put, the amount of property available in Malta is restricted because of the physical size and infrastructure limits of the island. Secondly Malta is universally attractive to holiday makers, retirees and those looking for a place in the sun, so both the demand for property for sale and rent in Malta actually rise annually.
The annual increase in demand and the physical restriction of the amount of available property in Malta creates the ultimate investment hotspot for an international real estate investor. Property price gains have averaged around eight percent in Malta until the last couple of years when price gains have averaged a strong fifteen percent annually.
But be warned before you look any further, Malta’s is certainly not an emerging real estate market nor is Malta a country with a low priced property sector. To invest in property in Malta you need significant funds to make any sort of decent investment!
If this fact hasn’t put you off then let’s look at the investment property potential in Malta.
Firstly you have an incredibly strong retirement market demand which will increase as soon as Malta has signed up to the EU agreement that allows for free passage of EU citizens. As soon as the agreement in place, citizens of other EU member states will be allowed to relocate to Malta without the requirements of visas etc., and it is predicted that this will create a mini surge in demand for retirement properties for sale.
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.
Currently the entire Maltese economy is being restricted by the poor performance of EU member states in general. A property investor should not be put off by this fact but realize that an investment made into the Maltese property market should be held for at least the medium term for the best potential for returns.
In terms of the best locations in and around Malta for a real estate buyer there is no one area that is better than another. The whole of Malta and the neighbouring islands of Gozo and Comino represent an opportunity to the real estate investor and the accessibility of the entire country has recently been boosted by the introduction of direct flights operated by a UK based low cost airline.
The ongoing and future prospects for Malta’s property market from an investor’s point of view are very positive indeed. Malta ultimately offers a very safe environment for a real estate buyer looking to make a decent income and see a steady increase in the value of his property asset. As Malta’s is not an emerging economy massive price increases and huge surges in demand for property for sale and rent are unlikely to occur, rather the appeal of the island will continue and income, yields and growth will steadily rise.
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