‘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.

Read more