Latest news on the property market in Malta
Over the past few years, the prices in Malta have increased by approximately 10.5%. According to the central bank, the inflation adjusted by 8.89% in the last quarter of 2016. This data reveals that the hike in prices is the highest the Maltese market has experienced in history. In the past, the real estate market would only increase its prices by an average of 4.5% annually.
This increase in prices has affected every part of the industry. For instance, apartment prices saw an increase of up to 7.34% of the nominal price each year. This would have been around 5.89% when the inflation is adjusted. Terrace housed incurred the highest change in prices. During this year, the houses had a 17.89% increase in prices. Maisonettes posted a double-digit rise to between 15-21%. Other houses, including townhouses, villas, and house of character increased by up to 7.98%.
According to the central bank, this increase in prices is as a result of the government’s recent efforts to support the real estate industry. The new budget the government, which includes the individual investor programs that aim at targeting the high net worth investors also contributed to this increase in housing prices.
There is also the fact that there is a stamp duty exemption for first-time property buyers – check this article from timesofmalta – https://www.timesofmalta.com/articles/view/20160622/local/property-prices-continue-strong-growth.616398 for all the property they buy that is over €150,000. This offer was extended until the 31st of December 2016. This allows first-time buyers to save up to 10% of the total amount they use to buy property. This also applies to all promise of sale agreements signed from the 1st of July 2015. The law also gives the people who paid for their land after this date, when the scheme was originally planned to end, the privilege to invoke a full stamp duty refund.
According to Tamara from maltasothebysrealty.com, between 2000 and 2007, the real estate industry in Malta experienced a full growth with the overall price index of properties going as high as 78.9%. However, due to the global financial meltdown in 2008, the prices fell drastically by a price index of 4.4%.
After a short-lived recovery in 2011, the prices fell again drastically in 2012. However, the prices did not stay down and have been rising since 2013. Therefore, the people who are currently getting a lot of profits are those who bought their houses when the prices were low. They can now sell them at higher prices without worrying that they are over pricing.
This increase is set to increase. Globally, more and more people are realizing the worth of owning a piece of real estate. While foreign real estate ownership and renting of villas like (check out this page http://www.maltasothebysrealty.com/eng/rentals/mlt/villa-type) are restricted by the law in Malta, it is still one of the best places to invest in. when compared to other parts of the world, Malta has the best housing deals. As a foreign investor, you get to have value for your money when you buy in Malta. With the prices of properties rising daily, the profit margins are also set to increase significantly.
If you do a google search you will soon realise how the property industry in malta is going from strength to strength.