Why buy property in Malta?

Because of the strength and durability of Malta’s real estate market, many are becoming aware of it that real estate can be an extremely lucrative and attainable investment opportunity.

Although most markets for property around the globe go through changes and fluctuations but the market in Malta is, for largest of the time, remained in a boom in the past 20 years or at least. According to official statistics released by Eurostat the property market in Malta increased by 41.6 percent between 2010 between 2010 and 2020, a figure that is higher that those in the EU average.

And, not only that, experts in real estate keep pointing out the long-term trends which underpin the health of residential property investments.

If you’re thinking of buying a house but aren’t sure of the most suitable option for you, I’m here to assist. There are five good reasons for buying real estate Malta that make it a wise investment.

1. The property located in Malta is an asset that appreciates

The market for property in Malta has remained robust over the past decade. Even the most catastrophic events like the pandemic has not stopped the property market. In fact, at year’s end, data revealed that the real estate development industry had better results than in the year before in which sales exceeded even the EUR3 billion threshold.

One of the primary factors that contribute to the strength of Malta’s real estate market is that due to Malta’s tiny size and population growth Land remains a important resource. This is leading to asking prices for land and sites for development to rise which leads to developers increasing the cost of property.

This is fantastic news for those who are looking to buy a home. It basically implies that if you invest now it is most likely to earn an enormous gain when you decide to sell later on. This is true for almost every property in any location and not only in prestigious locations like Sliema, Swieqi, and Valletta. In reality, I’ve witnessed firsthand how the market has exploded. In 2020, one-bedroom homes in Msida were available for about EUR145k. In just two years, prices for similar properties in the same location have increased to EUR155k.

There aren’t many assets available that increase in value as quickly.

2. The rental options are fantastic.

It is an excellent method of earning an income that is steady and stable. In the last 10 years, Malta has become home to many international students and expats who want to pursue their studies and jobs here. A majority of these foreigners prefer renting as they do not intend to remain on the island for a long time. This has resulted in a high demand for rentals on this market with rents hitting record-highs.

Renting a property as an investment opportunity is thought to be an investment that is so safe, it’s not unusual to see Maltese landlords to buy three or more properties. This is due to the rates they set continue to surpass the bank interest incurred on loans to property. The property owners are able to be able to pay back any loans, and still earn an income from their investments.

3. A holiday home that you can take time to enjoy with your family

The majority of investments are not motivated by the desire to make profits. People invest in order to build an asset that they can enjoy with their families for years to be. Malta has numerous opportunities to purchase homes for holidays in beautiful locations near the coast. These homes are fantastic vacations during summer offering the entire family an easy access to the ocean and nightlife. If you’re looking to buy an amazing house, you might be interested in Sliema, St. Julians Ta’ Xbiex Valletta along with Madliena.

The greatest benefit of buying a holiday house situated in Malta is that owners are able to keep this asset working to their advantage anytime they wish. Malta is an extremely popular tourist destination, and is constantly attracting interest from tourists who are looking for vacation rentals that are short-term. With the advent of online property websites like Airbnb it’s quick and straightforward to post your home for vacation rental when not in use , and generate an impressive side income.

4. The possibility of conversion projects

Investors seeking to realize substantial financial gains from a property might consider an investment in a conversion. In the past few years there has been an increase of interest in properties that have character and historic townhouses. However, many of the homes that come on the market are in disrepair and require to be transformed to be habitable. The truth is that few buyers have the time or desire to tackle this time-consuming task.

Investors with a budget and the right knowledge can try for properties that are not converted inexpensively, then convert them and then sell them for a higher price, making sure they are able to more than cover their costs. There’s also a fantastic incentive offered by the government to help buyers of houses within Urban Conservation Areas (UCA). This scheme provides for the exempting from capital gain tax and stamp duty for the first 750,000 euros when purchasing or selling an UCA property. Overall you can get a substantial discount on your investment, and also profit in the event of selling.

If the UCA conversion seems like too much effort Investors can consider buying an apartment that is modern in shell form, building the building up, and selling the property when it is completed within the space of two years. Again, the odds of generating a substantial return from investment, with a rapid turnaround are very high.

5. A secure investment in your children’s future

As the cost of property continues to rise, parents are naturally worried about how their children likely to be able to climb the ladder of property when they turn. This is why investing in a home is a good opportunity to pass down to the children. It also provides them with great flexibility and financial independence. Your children may choose to live in the house which will save them the expense of purchasing or renting. They can also sell it at a profit and give them the funds to purchase the dream home they’ve always wanted.

If you look at what the property market’s value has developed in the past 20 years Property can be an investment that is truly profitable. In a world where the savings in banks is declining in value as time passes and the value of real estate has risen steadily. Cash is no longer the king and it’s the property that rules the world.

Whatever the reason behind your desire to purchase a property in Malta I will offer you advice from an expert and ensure that the process is easy. Contact me now to discuss your goals for investment and I will help you identify great opportunities to expand your portfolio of properties.

CEBI, Level 3, Dar Ġuzeppi Zahra, University of Malta, L-Imsida MSD 2080, Malta