‘Slow and steady’ increase good for Malta property market

Higher Malta property prices were good news for the construction industry, Malta property owners and estate agents but increases must be “slow and steady”, a veteran economist has warned.

“A slow and steady increase as has been witnessed is good for the sector. Jumps and bumps are the worst thing that could happen because they create a bubble that can harm the economy,” Karm Farrugia said.

He was reacting to statistics published in the Central Bank’s quarterly review that showed advertised Malta property prices going up for the first time in two years. Read more

Malta property prices rise for first time in two years

Advertised prices for Malta property have gone up for the first time in two years, returning to positive territory in March, according to the Central Bank of Malta’s quarterly review.

Data show that in the first quarter of this year, prices increased by 4.5 per cent when compared to a year earlier, the first upward movement in 24 months. This contrasts with a decline of 1.4 per cent in the previous quarter.

Property prices started to drop in the second half of 2007 and took a sharp downturn between December 2008 and March 2009, as the global recession bit deep. Since then they have continued to fall but at a slower pace and the market started to show signs of stabilising.

The Central Bank’s data, compiled from advertised prices, show the upturn in the first quarter was primarily due to higher prices being asked for apartments and the more luxurious dwellings such as villas, townhouses and houses of character.

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Property for sale in Fort Cambridge

New on the market, being sold at pre-construction prices, APARTMENT being offered in Malta`s most exclusive development ‘FORT CAMBRIDGE’, Read more

Luxury Finished Detached Villa for Sale in Rabat, MLS: 240021042-324, Price: €3,000,000

A luxury finished DETACHED VILLA enjoying the peace and quiet of its surrounding garden and never ending country views offering a haven to the lucky owner with a layout that includes a drive way leading to both the home entrance Read more

Tumas Group in €5 million overhaul of VGT quay

Full plan for state-of-the-art Mrie?el office block to be submitted next week

Tumas Group is to enter negotiations with the government over a small extension to the quay at Valletta Gateway Terminals, part of a €5 million overhaul of the former Sea Malta berth, chairman George Fenech told The Times Business.The wider project, which Mr Fenech said is slightly ahead of budget, is intended to allow VGT to provide a wider range of services, including the accommodation of Virtù Ferries’ new, larger vessels. Tumas Group - with its wide-ranging portfolio spanning more than 35 operations - is currently focused on developing its real estate Malta leasing projects, particularly to meet increasing demand for top quality office space. Architect Ray Demicoli has finalised plans for a state-of-the-art office block along the Mrie?el strip, fast becoming one of the island’s foremost business districts. The block, occupying nine tumoli of land adjacent to Gasan Centre, is a joint project of the Tumas and Gasan groups.

It will encompass a total 35,000 square metres of office space in Malta.The full plan for Phase I will be submitted to planning authorities next week. The first phase of the project will include the development of 20,000 square metres’ office space in Malta and underlying parking for 500 cars. “This will be a state-of-the-art, open plan office block able to meet the requirements of the most exigent tenants,” Mr Fenech explained. “It will be almost entirely non-retail, with the only outlets permitted aimed at accommodating the demands of employees like a cafè bistro and a stationer.  There will be a child day care centre and a gym. The striking façade will feature curtains of greenery behind which there will be glass corridors framing the offices. Tenants will be able to start moving in by early 2013.”Further down the road, at the business centre housing Deloitte, Forestals and the Lotteries and Gaming Authority, Tumas Group has leased 1,000 square metres to Bank of Valletta subsidiary Valletta Fund Management which is to relocate from Floriana shortly. Meanwhile, Tumas Group is planning an additional 2,500-square metre floor and extra parking facilities to the premises currently leased to HSBC, British American Tobacco and PriceWaterhouseCoopers in Qormi.Ta’ Monita, the 180-unit residential village in Marsascala, another joint venture with Gasan Group, will now begin to be marketed more widely as its shell form is almost complete. Sixty units have already been sold. The project was inspired by Portomaso, the high-end residences developed around the centrepiece Hilton Malta in St Julian’s. The jewel in Tumas Group’s portfolio of residential ventures - as the first of its kind, it spearheaded the spate of ambitious luxury developments by other groups in the wider area - Portomaso remains one of Malta’s most desirable addresses with resale values continuing to rise.  Mr Fenech is encouraged by the early signs of recovery in tourism which have allowed for some increases in rates at the group’s major properties Hilton Malta and the Dolmen in Qawra. “The Hilton Malta has performed much better than we had hoped and revenue is up by €1 million,” Mr Fenech pointed out. “The Evian Hilton on Lake Geneve has also performed slightly better than projected.”

At the Dolmen, occupancy rose by eight per cent in February and March and by 10 per cent in May. April’s figures, down sharply by 11 per cent, were severely dented by the ash cloud crisis. Projections for June are showing a 10 per cent gain and could rise even further as the late booking trend persists this year. Tumas Group’s financing arm Tumas Investments plc, has just announced a 10-year, €20 million bond issue, with an over-allotment option of an additional €5 million. The nominal value is €100 issued at par. The bonds are unsecured but are guaranteed by Spinola Development Company Ltd. Copies of the prospectus will be available from June 11.Mr Fenech said proceeds from the issue will be used firstly for the redemption of the Tumas Investments plc 6.7 per cent Bond 2010-2012 on July 9. The rest of the funds will be channelled towards the part re-financing of existing borrowings and general funding purposes of Spinola Development Company Ltd and its subsidiaries.

Drop in Malta Property Prices slows down

Malta Property prices continued to fall in December although the drop was much less pronounced than in the previous months, indicating that the negative trend may have bottomed out, according to the Central Bank.

The bank’s index of advertised residential Malta property prices was down by 1.4 per cent in the fourth quarter of 2009 as against the 2.5 per cent decline registered in the previous quarter.   The index published in the bank’s first quarterly review for the year, which covers economic data for end 2009, also shows that average Malta property prices for the whole year were five per cent lower, reflecting the sharp contraction seen in the first half of the year when recessionary pressures dragged down the Malta property market.The relatively modest fall in the index towards the end of 2009 suggests that the negative trend in prices appears to have bottomed out and that the Malta property market may be stabilising,” the bank said.  According to the index, the drop in the supply of new properties may also be slowing down.While in the last three months the number of properties advertised for sale in the bank’s sample dropped by 7.9 per cent on a year earlier, new properties coming on the market in the previous three months had declined by a significant 24.1 per cent. The number of building permits issued by the Malta Environment and Planning Authority was also down, by 3.7 per cent, in December when compared to the previous year, which is in stark contrast to the data for the previous quarter when issued permits dropped by 38.9 per cent. Apartments registered a drop in price of 0.5 per cent while the asking price for maisonettes shed 3.3 per cent.  The growth in prices of terraced houses eased to 0.9 per cent and dwellings categorised as “others” bucked the trend and rose slightly to 5.5 per cent.

Published in the Times of Malta 11.06.2010

Hot Property for Sale in Gozo - Malta’s Sister Island!

Welcome to our  Hot Properties for Sale page for Gozo property. Though Gozo is Malta’s sister Island there is much interest in buying property in Gozo.  The list of properties hereunder are considered hot either because they are well priced or because of their rarity on the market.The standard of the building in Gozo is very high and there is a vast selection of property which is reasonably priced. The selection of property starts from standard apartments off and on the seafront to beautifully converted farmhouses with private swimming pool. Many celebrities have purchased properties Read More ….Hot Property for Sale in Gozo

Property in Pembroke

The first buildings in Pembroke, two watch towers, were built by the Knights of the Order of St. John to safeguard the coast of Bahar ic-Caghaq. Yet, major developments were done by the British in the early 20th century who built a military base with training grounds for their soldiers.

Pembroke served as a military base until 1977 and as evidence of this one can find many colonial buildings. The oldest colonial building is Fort Pembroke which was completed in December 1879. The purpose of this fort was twofold; to protect the Grand Harbour and, to defend the right flank of the Victoria Lines. Today, the fort has been converted to an international school hosting hundreds of foreign students every year. There is also a Military Cemetery which hosts the victims of the first and second world wars.

Today the area has developed into a proper residential town. Many of the colonial buildings such as the military barracks were converted into apartments and offices for Maltese residents.

Read More on Property in Pembroke

Is buying luxury property in Malta the best investment?

If you are looking to invest in property in the Meditteranean, according to local reports Malta’s real estate industry is still one of the only markets that is stable and reaping fruits.  According to James Vassallo, Sales and Marketing Manager of Tigne Point Malta, one of Malta’s most prestigious developments, sales of their developments have remained stable throughout 2009 and are still encouraging in 2010.  Claims are out that now that Tigne Point have opened their shopping facilities which also includes beautiful cafe’s and restaurants the project is finally coming together and throughout 2010, sales may pick up faster than projected.

The luxury property market in Malta has always seemed to do generally well with interest combined from both locals and foreign investors.  Nationalities like South Africa find Malta the best and the easiest EU country to apply for residency and therefore with the obligation of buying a property in Malta to become a resident, the Real Estate industry benefits as much as the potential resident.  Having said that if you are moving to a country to become a resident why wouldn’t you want to buy a property there is you plan on being based there.  Brick has always been the best age old investment one can buy.

Villas for sale in Malta are also ever so popular.  Malta’s unique spacious villas can be very attractive compared to the common European sized houses.  They are almost like palaces and often come with breath taking views. In Malta, villas can have a floor plan of even 1000Sqm including pool area. 

Its always important to do your homework.  Speak to someone that knows the dos and donts, someone that can possible provide you with the Legal and Tax implications (or benefits) 

 

Make a move on Malta, Property Market still stable

The Pope is due to visit next month, but that’s not the only reason Malta is stepping into the limelight.
Those in search of second homes are waking up to the idea that properties here make for good investments. English is spoken everywhere, and the climate, cafe culture and relaxed atmosphere have always made this small island attractive to British visitors. 

However, the renewed interest in the property market is down to other factors. ‘There’s more demand than land available, ‘ says Ray Woods, of Maltabuyproperty.

‘Malta has never been part of the great property bubble and the domestic sector has held up well, representing 70 per cent of the market.

‘It has not suffered the financial meltdown experienced in other countries, and local banks are offering 90 per cent mortgages.’   Another point in Malta’s favour is easy access. It is well served by low-cost airlines: easyJet and Ryanair fly there; Bmibaby is introducing a service from east Midlands airport from the end of May; and Air Malta is flights from Gatwick or Manchester from just £89 return.

Interest is also fuelled by improvements in the British property market.

‘This recovery is giving British buyers greater confidence to take the plunge and go for their dream property abroad,’ says Nick Bilocca, of Frank Salt (Real estate) Ltd.

‘They tend to prefer apartments, ideally close to the sea, and Malta has a good selection of properties at excellent value.’

Malta comprises just 122 square miles and so the sea is never far away, but you’ll pay a premium for uninterrupted views.   ‘Sliema and St Julians are popular, and 1,615 sq ft resale two-bedroom apartments close to the seafront start from about £156,164,’ says Trafford Busuttil, of Property-line International.

Valletta, the capital, is a World heritage site, and walking through its narrow streets is like stepping back into history.  Old buildings are being regenerated and transformed into stylish apartments, subject to strict planning laws.

The successful fusion of ancient and modern is showcased in a former palazzino in the heart of the city converted into three duplex apartments.

Each has an open-plan kitchen/ dining/ living room and two double bedrooms, and the penthouse has views towards Marsamxett harbour and Fort St Elmo.

For those with bigger budgets, villas tend to be in residential areas. Most are resales, starting at around £268,000 and going up to more than £1 million for a seafront detached villa complete with pool.  The neighbouring island of Gozo is quieter and suits those wanting to get away from it all.

Converted farmhouses and period properties are particularly sought after. A fabulous home on the market in Gharb is packed with original features, has four bedrooms, all with ensuites, a central courtyard, terrace and pool.  Malta’s holiday season lasts for up to 26 weeks a year, which is good news for those hoping to earn income from holiday rentals.

‘The most popular resort with holidaymakers is St Paul’s Bay, followed closely by Valletta and Mellieha,’  When buying purely for investment, Ray Woods recommends opting for long lets.

‘These are a safer bet because rates for holiday lettings are low in some areas, so look for properties near to centres of employment,’ he says. ‘Gzira, outside Sliema, is a good choice.’

Tigne Point in Sliema is Malta’s most ambitious property regeneration project.   Across the harbour from Valetta and 15 minutes from the airport, it includes a piazza, new shopping mall and luxury apartments in landscaped gardens.

Only ten units are available, starting at £408,000 for a two-bedroom apartment. The development appealed to Andrew and Jayne Harding from Stockport, who have visited Malta 37 times.

‘ We were interested in the apartments and penthouses and asked developer Tigne Point to explain what was being built and the concept behind it,’ says Mr Harding.

‘We were also taken on a private visit to Manoel Island in the middle of Valletta’s natural harbour and saw the extensive restoration works being carried out on the 18th-century fort.