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Malta Property Investors Have Another Record Year

Property prices on the Mediterranean island of Malta have risen again, and according to overseas property specialists Tribune Properties, there is still no end in sight to any market downturn.

Recent government figures showed a sixteen per cent increase in the year to March 2006.

Tribune Properties says demand for property in Malta remains strong in the UK, US, Australian and European markets, and forecasts a further 10% increase over the coming year.

“We normally see a drop in inquiries a few months before any price leveling,” says Tribune managing director Roger Munns, “but demand for Malta this year is just as strong as in 2005 and at the moment, we can only see prices going in one direction in the short term at least – and that’s it”.

The Maltese government is expected to allow developers to use more land for construction, but Tribune sees this as a negative rather than a positive move.

“Malta is an island with a limited amount of land, and although the Maltese government is considering freeing up more land for construction and more properties as a response to rising property prices, we believe this is not is not the right approach,” says Tribune, “and in the end, further developments could have a negative impact on the Maltese economy.

Tourism is a big industry for Malta, and tourists are unimpressed with cranes and construction work as they try to relax or go to see Malta’s historical sites, and if it is of a first visit to the island, it is more likely to be the case. to be their last, losing repeat business to the Malta holiday industry.

Holidays in Malta

There has been some discontent on the island over rising property prices in Malta, and with fewer overseas buyers the possibility that prices will fall and more islanders will be able to access the Real estate scale could be good news, because today’s tourist is often tomorrow’s property. Buyer.

But there has been speculation for some time now that budget airlines will start offering flights to Malta, and this will help Malta’s hotels and holiday market as more and more people consider three- or four-day breaks instead of the traditional week or fortnight, boosting overall visitor numbers, especially if Air Malta and low-cost airlines bring the cost of flying to Malta to levels seen for the Spanish islands .

Malta has traditionally seen the majority of its visitors from the UK, but this could change to a more diverse mix in the coming years.

Last year saw a record number of visitors from Italy, and more and more inquiries were received from estate agents all over the island of Scandinavia, Holland, France and Belgium, contributing to increase the demand for properties in Malta.

A new ‘smart city’ is also being planned, which could see Malta compete with the rest of Europe as a business destination for internet and other high-tech companies. English is widely spoken in Malta, and coupled with relatively low wages locally, it is hoped that foreign investment and 5,000 new jobs will help the Maltese economy which in turn will boost the property, hospitality and hospitality markets. holidays.

“Malta is currently at a crossroads,” concludes YourMalta, “and it remains to be seen whether the next few years will pave the way for economic prosperity or gloom.”

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