Feature: The rise of the Property Letting Market in Malta

Throughout the last few years Europe and North America have been through an unprecedented recession, last seen over 25 years ago. From America, Greece and Spain, many banks have gone bankrupt, austerity measures were needed to save Greece and street protests fill the news with uncertainty and a bleak financial outlook for the future.

Things could not have been any more different for Malta. Registering economic growth year after year Malta’s sound economy is based on savings rather than borrowing. The banks’ stringent lending policies coupled with the peoples hard work and intelligent investments have made Malta a haven for international investors. In 2010 Malta registered a net investment inflow of 792 million euros (National Statistics office) which is approximately 10 % of its 7 billion euro annual gross domestic product. This is a sign of consumer confidence in Malta’s ability to deliver as a stable investment. This is due its recent membership into the European Union, Euro currency and Moody’s reconfirmation as an A1 rating (Times Of Malta 2012). “The rating reflects high levels of economic and institutional strength, high government financial strength and very low susceptibility to event risk,” the agency said. CSB Group has recently learned that in 2010 there were 3,061 new companies registered in Malta. This is apparently the highest number ever recorded, according to the Malta Financial Services Annual Report 2010.One of Malta’s fiscal policies it has adopted that been the cause of these results are its favourable tax system and the governments persual of multinational companies such as Lufthansa technique and Dubai’s Smart city.

The influx of foreign direct investment has spurred the demand for real estate. Thousands of company executives and its workforce have raided the property market. Given its small size and therefore supply of properties available particularly for rent, this demand has caused the price of properties for rent to increase by over 50 % over the last 6 years.

There are many new apartments for rent in malta that are being bought as investments that yield on average a 5 % annual rate of return. These are new apartments and villas to let in Malta that are finished off to high standards that are being rented fully furnished. Furthermore the so called lifestyle properties like Portomaso, Tigne Point and Pendergardens have been an overwhelming success. These 5 star developments incorporate a mix of apartments/penthouses, hotels, shopping complexes, marinas and restaurants. Boasting of over 80 % occupancy all year round these properties lease for between 800-6000 euros monthly.

New businesses bring demand for both residential and commercial real estate. Several office buildings are full and many new ones are being developed with even further developments in technology and environmentally friendly measures. There are Malta Offices to let that offer servers, back up generators and serviced offices. These are congregated in the Sliema/St. Julians and Gzira/Ta Xbiex areas where employees can live a truly Mediterranean first class lifestyle. Residents here can live and work 5 minutes from each other and all this whilst being by the seaside. These corporate workers enjoy the country with its feel good sunny factor side by side with tourists. There are record levels of tourists year on year reaching a peak of 1.4 million in 2010. The demand for Holiday apartments in Malta has also increased as an alternative to hotels. These self-catering apartments are newly built, come fully equipped and are centrally located by the sea. It is ideal for larger parties of people whereby it is financially more attractive, have the comfort of a living room and one can cook from home rather than eat from restaurants day after day.

Be it residential or commercial, short or long lets the property letting market is truly on the rise and there is no turning back !

Send us a request for information – www.malta-lets.com

Jerome Mamo Ma, B.Com

(00356) 99997777/ 21410907

[email protected]

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