Property prices on the Mediterranean island of Malta have risen again and, according to overseas property specialists Tribune Properties, the end of the downturn in the market is not yet in sight.
Recent government figures showed an increase of sixteen percent in the year to March 2006.
Tribune Properties says that demand for property in Malta remains buoyant in the UK, US, Australian and continental European markets, and predicts a further ten per cent increase over the coming year.
“Normally we see a drop in inquiries a few months before prices level off,” explains Tribune CEO Roger Munns, “but demand for Malta this year is as strong as it was in 2005 and, for the moment, we can only see prices going in one direction at least in the short term, and that’s about it.”
The Maltese government is expected to allow developers to use more land to build on, but the Tribune sees this as a negative rather than a positive move.
“Malta is an island with a finite amount of land, and while the Maltese government sees freeing up more land for construction and more property as the answer to rising property prices, we believe this is the wrong approach. “, says Tribune, “and in the end, further developments could have an adverse impact on Malta’s economy.
Tourism is a major industry for Malta, and tourists are unimpressed by cranes and construction work while trying to relax or go see Malta’s historical sights, and if it’s your first visit to the island, there are more possibilities. that he does it. to be the latter, losing Malta’s holiday industry repeat business.’
Maltese Holidays
There has been some discontent on the island over rising property prices in Malta, and with fewer foreign buyers, the prospect of lower prices and more islanders being able to climb the property ladder could be good news, as that the tourist of today is usually the property of tomorrow. buyer.
But there has been speculation for some time that low cost airlines are going to start offering flights to Malta, and this will help Malta’s hotels and holiday market as more people consider three or four day holidays rather than the traditional week or fortnight, boosting overall visitor numbers, especially if Air Malta and low-cost airlines bring the cost of flights to Malta to levels seen for the Spanish islands.
Malta has traditionally seen most of its visitors from the UK, but this could change to a more diverse mix in the coming years.
Last year saw a record number of visitors from Italy, and more inquiries have been received from estate agents across the island from Scandinavia, the Netherlands, France and Belgium, helping to increase demand for property in Malta.
A new ‘smart city’ is also being planned which could make Malta compete with the rest of Europe as a business destination for internet and other high-tech companies. English is fluently spoken in Malta and, coupled with relatively low wages locally, inward investment and 5,000 new jobs are expected to help the Maltese economy, which in turn will boost the property, hotel and vacation.
‘Malta is at a turning point right now,’ YourMalta concludes, ‘and whether the next few years will pave the way for economic prosperity or pessimism remains to be seen.’
