Local Interest in Property in Malta

It’s a fact, property prices in Malta have been screaming ahead and rising rapidly and dramatically in recent years.  There is the belief among those in the property industry in Malta that prices have not yet peaked despite up to 40% increases in just two years, and because demand is still so intense and likely sustainable, prices could continue to go up by as much as 10% annually for at least the medium term.

There’s no denying the fact that international investment and the inward migration of high numbers of expatriates in proportion to the country’s size and local population have artificially inflated the median price of property above that which the average Maltese citizen would like to afford - so how does all this affect local interest and property in Malta in general?

The leading Maltese daily and Sunday newspaper The Malta Times has just completed an intensive and comprehensive survey of local interest in property in Malta and its findings together with our own research make interesting reading.

Despite the fact property prices have increased dramatically and priced many local first time buyers out of the market, the overwhelming majority of a broad demographic mix of Maltese people state categorically that they will always opt to own property rather than rent even if the rental rate in question was ‘reasonable.’

The issues relating to property price increases fuelled by overseas buyers were touched upon in the survey and we have noticed that there is a general and growing feeling of disgruntlement locally about overseas buyers forcing prices out of many local people’s reach in Malta - but that does not detract from the fact that of those questioned by the Malta Times survey an incredible 82.3% believed that the construction industry is a major force driving and sustaining the strong local economy.

In other findings of the survey we can report that the building of high rise property in Malta is seen by local citizens as a necessary evil to overcome housing shortages, the construction of hotels in areas of natural beauty is acceptable to draw more tourism to the island as tourism is another driving force behind the economy, the destruction of established hotels in areas of beauty to be replaced with highly priced private residences is not acceptable, and anyone whose financial circumstances change for the better and who is currently residing in socially assisted housing should vacate their home as soon as their means allow.

Local opinion aside, the fact of the matter is Malta is a highly attractive location for overseas buyers who want to retire to the sun, it can be a very lucrative market to invest in for those seeking tourism buy to let potential and finally, well located and currently well priced real estate with the likes of sea views and/or access to good amenities, services and facilities could well make a fantastic long term, capital appreciating asset.  Because Malta is an island it is geographically restricted in terms of the density and amount of property that can be constructed on its shores – therefore, as demand continues to surge from local and overseas buyers, so supply will increasingly fail to meet that demand and property stock held for the long term could return impressive gains.

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