What is the Property Market Trend in Malta?
Malta’s property market may seem dismal at first glance. Dhalia Real Estate and Grant Thornton have collaborated to conduct a comprehensive study that examines housing prices, sustainable house price growth, and gross rental yields. The Amazing fact about invest in Malta’s real estate.
Property has long been considered an excellent investment. But what does the future hold?
1. More and more luxury developments are being put on the market
As such, Malta’s property market is becoming more diverse. When purchasing real estate in Malta, it is wise to consider specific considerations, such as location, cultural heritage sites, or landmarks – it may make or break your decision!
Demand for new residential developments has steadily increased in Malta over recent years due to their combination of living and working environments. According to a Let Buy Mark survey, people prefer apartments over villas as living arrangements.
Grant Thornton and Dhalia conducted a recent study revealing that prices have steadily been rising in Malta for some time now. Yet, an average two-adult household can afford a 115-square-meter apartment at current market prices, provided they have enough disposable income to service their loan payments – this figure being considerably less than before when housing prices peaked in Malta.
2. The public’s choice when it comes to buying property reflects these changes
Maltese public had traditionally favored property purchases over renting until recently. However, due to the Covid-19 pandemic, rents dropped sharply while vacancies skyrocketed – Malta now has one of the highest vacancy rates in the EU.
Maltese homeowners today prefer homes that balance living and working space, with apartments or houses offering living and working areas within new developments like Sliema or St Julian’s. Additionally, living near shops or restaurants is desirable.
Young couples still tend to buy rather than rent, which could change over time. Real estate purchases are generally good investments; however, not all properties offer equal returns; purchasing property with unique features such as sea views or gardens will increase its value over time and make for easier purchasing processes. It should also be remembered that luxury developments typically take longer to purchase.
3. Young couples still prefer to buy rather than rent
Real estate remains a pivotal milestone in Maltese lives, particularly for young couples. Instead of renting, these individuals wish to purchase apartments or villas that will become part of their personal property portfolio, which explains why demand remains vital for new properties in Malta.
Since 2021, apartment and villa prices have stabilized significantly, while houses with terraces increased slightly. Furthermore, new home demand has surged significantly thanks to COVID-19 temporary measures reducing taxes and duties for property transferred inter vivos of up to EUR400,000 shared between life partners.
According to our experience, most buyers prefer living in Sliema and St Julian’s, where there is an ideal blend of new residential developments, shops, restaurants, and offices. Being close to public transport makes reaching other parts of Malta much more straightforward, too – another reason these areas remain attractive. In the future, we expect larger condominiums to be constructed, which will not necessarily be seen as unfavorable if they adhere to today’s stringent construction standards.
4. Buying real estate is always a good investment
Real estate in Malta is experiencing unprecedented growth. This should come as no surprise; investing in property has always been seen as an advantageous move,. Now more than ever, there is significant interest from both domestic and overseas buyers in purchasing properties in Malta.
As more people need space, new properties that meet today’s stringent standards are being built – with investors more inclined to invest in these modern buildings rather than old houses.
Additionally, many prefer apartments to villas because apartments are more cost-effective and suitable for young couples.
One factor contributing to increased demand is that apartments can now be purchased without an AIP permit, especially complexes in Special Designated Areas. This has opened the market up for foreigners and increased luxury property market sales.
5. The public’s choice when it comes to buying property reflects these changes
Market conditions and consumer tastes evolve constantly. Converted farmhouses used to be all the rage, but nowadays, many prefer newly built apartments and houses that meet modern standards instead of retrofitting an older structure. Doing this also saves them hassle and money when renovating an older property.
Property market predictions look favorable in the short term as no storm clouds are on the horizon. Malta remains an attractive option for property purchases due to stable regulations and banking services providing mortgages, thus enabling more people to purchase homes there as investments. Our real estate experts at Let Buy Mark would love to assist in your search for your ideal home – they view properties daily and can give professional valuations on prospective purchases, so why not contact them now?
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