“There’s no time like the present”; this saying holds true for foreign buyers who are looking to invest in stable European property markets. The current exchange rates (pound hitting 1.40 against the euro this month, and the dollar at 0.92) are clearly favouring buyers with dollars and sterling.
In simple numbers, back in 2014, a buyer with a budget of £200,000 could afford a house of approximately €250,000. This year, with the weaker euro, that same buyer can afford a house of €275,000. This is a significant change which increases exponentially with the value of the property.
The same situation applies for the dollar buyers. The downfall of the euro has become a game changer for buyers looking for the perfect getaway in Europe. From its lowest point last year to today, the dollar increased by 26% when compared to the euro. So last year, the property purchaser with a budget of $200,000 could buy a property of €128,000. Today, the same buyer can purchase a property worth €184,000! That’s a difference of €56,000 which can contribute for better finishing, alterations, or even a bigger home. The price difference increase can also enable the buyer to look to buy in a different location.
The current exchange rate is very attractive for non-EU buyers; however, investors also consider the overall stability of the market. This means that European markets where property prices are highly volatile and unpredictable are often overlooked by international buyers.
This, fortunately, does not apply to Malta where our property industry has experienced strong growth ever since the turn of the new millennium (with the exception of 2008 where prices stood at a halt due to the euro crises).
Figures issued by Eurostat show a steady increase in local property prices of 4.1% between the fourth quarter of 2013 and third quarter of last year. When comparing this figure with other potential getaway destinations in Europe, such as Italy (-3.8), Cyprus (-1.7), France (-1.2), Spain (+0.3), and Portugal (+4.9), Malta sits in a very strong position to compete with other major European countries.
To complement these positive economic elements, Malta has already a good number of schemes and incentives for foreign buyers, such as the Individual Investor Programme and Special Designated Areas. The latter is not only attractive in terms of tax benefits, but also through the property diversity and leasing advantages which are only offered by these luxury developments.
Since market conditions are very attractive, Malta also appeals to some of the best global real estate brands. The advantages of buying through an international brokerage company are endless. Property information and service quality can be easily maintained with the use of an international network of partners, all promoting the same practices and company values. Therefore, if you are thinking about your next property investment, reach out on us and look no further. Malta is your next getaway destination!