The Mediterranean island of Malta has recorded
the strongest growth in property prices from countries in
the European Union, and recent news could help see property
inflation in double figures for the next few years.
Figures released by the European Mortgage Federation show
Maltas rise of over eighteen per cent was higher than
both France and Spain.
Two EU countries, Germany and Austria, saw house prices drop,
while Portugal, Greece and the Netherlands were barely into
positive territory.
And property insiders on the island are predicting that strong
growth could be around for a few years yet, giving Malta the
potential to be seen by investors as a good place to buy.
Tribune Properties who specialise in property for sale in
Malta report that the first quarter of 2006 has seen a good
level of activity, with the top end of the market seeing particularly
good performance levels.
The first couple of weeks of January were slower than
the same period last year comments Michael Johnson,
Tribunes Managing Director, but since then the
number of sales has matched last year a very good one
but villas with an asking price of a million Euros
and more has seen increased activity, and a good number of
sales.
Malta Hotels and Holidays
The independent information site for holidays and hotels
in Malta http://www.yourmalta.com also report increased interest
in their property pages compared to the first quarter of 2005,
with the number of page views increasing by nearly a third.
Sustained property inflation at levels seen in Malta are
rarely seen in other countries, but new economic activity
on the island could see property demand at good levels for
some years to come.
A new Smart City is planned which could see Malta
competing with the rest of Europe as a business destination
for internet and other high-tech companies. English is spoken
fluently in Malta, and coupled with relatively low salaries
locally it is hoped that inward investment and 5000 new jobs
will help the Maltese economy which in turn will boost the
property, hotel and holiday markets.
The tourist industry is vital to Maltas economy, and
it is hoped that the arrival of low cost airlines providing
new flights to Malta will benefit the Malta holidays industry
as well as the many hotels in Malta.
If Malta can combine the attractions of a Mediterranean holiday
island with a modern infrastructure and high tech friendly
business in a low tax environment, todays property prices
could look like a bargain in five years time.
The introduction of low cost flights to Malta from the UK
will open up the possibility of more buyers looking at the
island for holiday homes that could be used for long weekends,
and the Malta hotels industry could reap the benefits of the
3 and 4 day tourist seeing the island as a viable place to
visit.
Malta has traditionally seen the majority of her visitors
from the UK, but this could be changing to a more diverse
mix in future years.
Last year saw a record number of visitors from Italy, and
increased enquiries have been received at estate agents across
the island from Scandanvia, Holland, France and Belgium, helping
to increase the demand for Malta properties.
After some years of wondering how Malta would fit into the
modern world, property agents, hotel owners and the Malta
holidays industry are beginning to see the future with some
optimism.
Roger Munns
Experts say Malta set for double-digit property price
growth
International real estate experts are predicting
another strong year of growth in property prices in certain
European counties in 2007, with Malta expected to see some
of the fastest rising prices. Knight Frank, an international
property consultancy, has compiled a list of seven markets
likely to see double-digit growth or more next year. These
include Croatia, Cyprus, Estonia, Poland, Romania, the Slovak
Republic and Turkey. In Malta prices are expected to rise
by 12.5%. Commenting on the report, estate agent Tribune Properties
told investmentoffshore.com that the predictions for the Maltese
market are not surprising, with low-cost flights bringing
more tourists and potential home buyers to the island. “You
only need to look at how property prices have increased elsewhere
in Europe where the low cost carriers are flying to understand
that there is a reasonable chance of Malta being part of that
trend,” the company stated. Tribune sees Malta and Cyprus
as having the most sustainable property markets in the medium-
and long-term, as these are regarded as mainstream destinations
by the UK property-buying public, which forms the largest
segment of holiday and investment home buyers in the two islands.
“We often speak to UK buyers who have whittled down
their choice to Malta and Cyprus, and both islands have seen
inward investment from property buyers for some time now,”
Tribune said. “Turkey has also seen quite a few buyers
as the prices are normally lower, and there is still some
countries in Europe who might oppose Turkey joining the EU,
which often is a catalyst to property investment. Croatia,
Poland, Estonia, Romania and the Slovak Republic are fairly
new to the game, where prices are considerably cheaper.”
by Knight Frank,
Maltatoday, Sunday, 19th November, 2006
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