Investing in Property in Malta

Real estate investors in Malta have done well in recent years, with good annual increases in prices over the last ten years.

But with EU membership now two years old, and questions last year about Malta staying as a mainstream holiday destination, future potential became questionable. Real state agents in Malta though seem fairly confident that the rises will continue for a while yet.  At the beginning of the year two leading international real estate agents predicted ten per cent inflation for 2007.

One factor that investors could be taking into account when looking at the possibility of buying a property in Malta is that since the financial crisis Malta property market is still quite stable with realistic decreases in prices on a national level without reall affecting the high end market.

Malta’s low taxes are also inceasingly attracting new residents this year. With tax at less than half of many other EU countries, buying real estate in Malta often makes economic sense, as well as being a home in the Mediterranean for many.

Buyers from the UK in particular often cite Malta’s low tax regime as one of their primary motives for moving to the island however the great lifestyle coupled with the fact that practically all the island speak english are clse seconds.

British Investors

Ryanair’s new routes from London and Dublin to Malta have proved a success both for the airline and for the island since the launch in November of their Luton flights. Initial estimates of an extra 80,000 tourists due to Ryanair might be much lower than the true figure when results are published. Reports suggest that Ryanair might be considering further flights to Malta from different destinations. Whether this will be from the UK or elsewhere isn’t clear yet.

The popular low cost airline easyJet has also assisted the trade and there are rumours that the airline may add a couple more routes other than their popular Gatwick London route.

Air Malta, the island’s national airline, has run a successful campaign to sell seats, and has opened up a new route from the North-West of England, flying from Liverpool’s John Lennon Airport.

The advantage Malta has for UK and Irish visitors is that they drive on the same side of the road and English is spoken, and for non British Isles visitors Malta has well known language schools where they can learn English.

A 2 bedroom apartment in the popular Malta holiday resort of Qawra is currently on the market for €121, 127 and a three bedroom two bathroom apartment in equally popular Mellieha for € 197, 000 negotiable. Property in St. Julian’s and Sliema for expatriots are probably most popular prices start from € 130, 000 whereas places like Portomaso and Tigne point are also popular where prices for these high-end luxury property in Malta start anywhere from € 320, 000.

‘With lower fares, Malta becomes a destination viable for 3 and 4 days trips a few times a year from the UK, and that will attract buyers to look at Malta in the same way they do France and Spain when considering where to buy a holiday home abroad. The weather in Malta and low fares could be a magnet for buyers’, commented one local travel guide recently,

Considering the Maltese property market has not been as affected as the Spanish or the French markets, the low tax rates in May also encourage investors to come to Malta.  If you are interested in buying property in Malta and living luxury in the Mediterranean it is recommended to contact a reputable real estate company.