A high level of stability distinguishes the market
A mild Mediterranean climate all year round, very convenient accessibility from many European airports, favourable tax conditions for HMWI, a truly fantastic Global Residency Programme and a stable political and economic situation make the island state of Malta an attractive location for investment. The real estate market has been undergoing sustained capital growth over many years. There are still areas though that are relatively untouched by tourism, making Malta an insider’s tip in many people’s eyes.
Around a third of buyers are based abroad. The international buyers on the market are made up first and foremost of British citizens, followed by interested buyers from Italy, Germany, Spain, the Netherlands and Sweden. Recently, there have also been increasing numbers of buyers from the USA and the Middle East. Maltese is the official language spoken on the three inhabited is-lands of the Republic of Malta, although English is spoken fluently almost everywhere as the se-cond official language.
The market for luxury residential property on Malta is characterised by a high degree of stability and moderately rising prices. Detached family homes of between 500,000 euros (approx. 420,000 pounds) and 1 million euros (approx. 850,000 pounds) are sold most frequently on Malta, although up to 10 – 20 million euros (approx. 8.5 to 16.9 million pounds) can be fetched for luxury property in prime locations. For apartments in limited and sought-after locations with breath taking views, clients also pay high prices of as much as 6,500 euros (approx. 5,000 pounds) per square metre. The highest prices are fetched for modernised historic properties in Valletta known as Palazzos built as early as the 1200’s, which meet the highest specifications in terms of their fittings and overall quality standard. The most important criterion for a fast sale is a realistic valuation of the property however, as buyers scrutinise both the location and property quality and are unwilling to accept excessive asking prices. Compared to the previous year, prices have remained overall constant and Engel & Völkers Malta is anticipating that there will be a small rise in value due to the high level of demand from abroad. Rental investments too are becoming increasingly popular, as the continuously growing number of visitors means that they can effectively be rented out to tourists, thereby ensuring a reliable return on investment.
The most desirable locations centre on the east of the island of Malta, in places such as Valletta, Sliema, St. Julians, Ibrag, Madliena and Swieqi. Small, romantic fishing villages such as Birgu, Zebbug, Siggiewi and Rabat are also very desirable due to their authentic, quaint charm.