More than just a Holiday Destination – Why Real Estate Buyers Should Consider Malta

With only 316 square kilometres, the Republic of Malta may be the smallest state of the European Union, but its true potential surpasses its size by far: it offers high standards of living, a thriving property market, and breath-taking natural sceneries. Join us on an expedition to find out what makes the island state the veritable jewel of nature it is, and how it promises high returns.

Hamburg - The island of Malta is an attractive holiday destination. However, the miniature state is also a top-tier location for real estate investments in residential and commercial properties. Read on to learn why.

High Standard of Living and Sustainable Tourism

The Republic of Malta has 433.000 inhabitants that live on three main islands: Malta, Gozo, and Comino. With 90% of the Maltese population living on Malta, the island is populated much more densely than the other two, which have a more untouched feeling. Even though Malta's vegetation is rather sparse due to its infertile soil, the state certainly deserves to be called a natural paradise of real beauty. The water is a brilliant blue and its waves splash gently through countless hidden lagoons. An annual average temperature of 22 °C provides ideal conditions for hobby divers, snorkellers and swimmers. Despite this abundance of beauty, Gozo has not really been opened to tourism yet, thus providing an appealing destination for those looking for peace and quiet.

Malta as a Paradise for European Investors

While the island has a lot to offer to water sports enthusiasts, its properties also attract a lot of attention from foreign investors. “Since Malta became a member of the EU in 2008, investments in commercial real estate have been constantly on the rise,” says Benjamin Grech, Managing Director at Engel & Völkers Commercial in Malta. He adds that an estimated 40% of all properties are sold to buyers from other European countries, especially from Italy, France, Belgium, Germany, and Scandinavia. Last year, Engel & Völkers Malta brokered 3.200 square metres of land worth €3,0 million which now houses a 17-story office building. As the demand for high-end offices, prime locations for the hospitality sector, warehouses, and construction land continues to grow, many of these investments could generate a return of at least 6%.

Growing Attention Leads to Market Uptrend

The growing interest in the small island state has had a decidedly positive impact on its property market. The opening of several boutique hotels in Valetta, the capital city, was followed by a significant increase in prices for residential and commercial properties. “In the last three years, property prices have risen by an average of 30% per year,” says Benjamin Grech. The transaction volume is expected to grow even more. In the next two years, the Maltese housing market will grow by another 10.000 new properties.

Who would have suspected the enormous hidden potential of the Maltese property market? If our small expedition to the Mediterranean country has made you curious, you are welcome to have a look at our local property offers. For further intriguing insights into the rapidly changing world of the property market, visit our market trends section.

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