Malta is experiencing a rapid upsurge in the property market, with increasing demand for both domestic and commercial real estate. Strategically situated in the heart of the Mediterranean, the island is once again reaping the benefits of its prime location between Southern Europe and North Africa. It’s also making the most of its status as an EU nation and Commonwealth country too.
For those wondering what the real estate landscape in Malta will look like in the next few years, we’re shedding some light on what we should expect from this thriving industry.
Influx of Foreign Business
The result of the Brexit referendum last year was shocking and some never actually believed that the UK would actually go through with it. Just over a year later, however and Brexit negotiations are in fact, in full swing. The UK will undoubtedly suffer but the whole situation may prove beneficial for Malta.
As the only other nation left in the EU with English as one of its official languages, Malta could attract a large share of the business looking to move on from the UK. The island’s English-speaking status has already garnered a great deal of international attention from businesses looking to relocate their operations overseas. As a central European location with a skilled workforce, relatively low cost of living and attractive tax incentives, Malta has managed to attract some heavyweights across a range of industries. From iGaming and tech, to financial, aviation and telecommunications firms, the island has experienced a huge influx of foreign business over the past decade.
These organisations are the reason why commercial property has seen such high demand, especially in prime localities such as Valletta, Sliema, St.Julian’s and a small handful of other towns. Meanwhile, foreign workers moving here with their companies are also looking for residential units in the same areas.
The Brexit situation can only improve matters with many businesses choosing the island thanks to its high competence in English as well as its Commonwealth status. We’re also looking at a boost in the demand for cafe’s, catering businesses, restaurants and retail outlets which are likely to continue springing up.
High-Rise on the Horizon
High-rise buildings seem to be making the news on a regular basis, with many plans currently in the works. These buildings will allow Malta to maximise on its supply of quality domestic and commercial properties without infringing on additional space. With many locals questioning their motives however, the government needs to find a way to support the local infrastructure so as to avoid creating more traffic in the roads as well as a lower quality of life. Planning is also essential to avoid future chagrin.
Open spaces and landscaped areas also need to be taken into consideration to balance this kind of development in a relatively small area.
A Property Bubble?
Some locals have expressed concern that the demand the island is currently experiencing is a so-called ‘property bubble’ that must inevitably burst, leaving economic disaster in its wake. This however can be classified as a common myth since the property market is far from Malta’s sole source of income.
The local economy is currently stronger than ever and the island continues to rely on the tourism sector and on its manpower to drive it forward.
The Bottom Line for the Property Market in Malta
The surge in foreign business along with the tendency for locals to invest in second properties are signs of a strong future for real estate in Malta. All kinds of properties will become more in demand than ever, from eateries, outlets and entertainment venues to quality office space and residential units.
Property purchasing will become even more regular both with locals and foreigners looking for a home as well as corporate investment looking to increase their assets. The demand for property for rent, both domestic and commercial will also see the general public considering purchasing secondary properties as buy-to-let investments.
This is also of course, excellent news for the construction industry too, since supply will have to catch up with demand.
The future of the real estate sector in Malta definitely looks promising. By moving with the times and learning from previous mistakes, the island’s property landscape has a bright future ahead.