Four ways to take advantage of Malta's booming Property Market
Malta has cultivated a healthy economic landscape which reaches the requirements of the investment market around the world. With ever-growing demand, the island registered a 6.6% GDP growth in 2017 and is home to a number of growing sectors, namely the financial sector, tourism, gaming, pharma, shipping and yachting, amongst other industries. Malta has also positioned itself as an ideal environment for investment in property, and it therefore does not come as news that Malta’s property market is thriving.
As foreigners flock to the island, some for a relaxing holiday, others with a more permanent stay in mind, the demand for property for both rental and residential purposes is on the rise. Yet, with a booming market comes higher demand, and finding your dream property may not be easy, despite the range of real estate ranging from luxury penthouses to quaint farmhouses.
Whether you are looking at property in Malta as a new home by the sea, or whether you see Maltese real estate as a prime investment, here’s how to make the most out of Malta’s flourishing property market.
1.Take Advantage of New Schemes
In the 2019 Budget, the Maltese Government announced plans to implement a Real Estate Investment Trusts (REITs) framework that will trade on the Malta Stock Exchange (MSE). Such a framework gives smaller investors the opportunity to purchase property as an investment vehicle. REITs will provide the public with a new asset class that allows for rental income as well as creates more liquidity in an illiquid real estate market. REITs are, in fact, designed to attain real estate in order to rent and manage it as part of a property investment. In addition, many REITs structures around the world are required to list part of their shares on a public stock exchange in order to maintain transparency and thus protect investors.
2. Explore Investment Opportunities
Investing in property in Malta can also be an investment opportunity that does not generate traditional gains such as rental income, but rather invests in education, healthcare and business opportunities. This is because purchasing property in Malta is one of the first steps towards gaining citizenship or residency in Malta. Investing in property in Malta can, therefore, mean investing in European citizenship, Schengen residency as well as the right to live, study, work, and do business in the European Union.
In addition, Maltese citizenship would provide investors not only with visa-free travel to over 180 countries, but also provides access to educational opportunities and high quality healthcare services in Malta and the rest of the EU.
3. Benefit from Increasing Value
The value of property on the island is increasing steadily as a consequence of the high demand. According to Knight Frank, investors benefitted from a 17% year-on-year increase in value in property in the second quarter of last year, with property in Valletta, Sliema and St Julian’s increasing in value substantially. Malta’s property market has maintained its value and remained resilient, even withstanding the financial crisis of 2008, unlike property in other countries within the European Union. As a result, Malta’s property marketing ranks ahead of countries such as Hong Kong.
4. Capitalise on Buy-To-Let Investment Models
The influx of foreign investment to the island has increased the demand for rental opportunities across the island. The trend is fairly recent as locals do not usually rent for personal use. However, the great amount of foreign workers employed in either of the growing industries has seen a number of investors look to the rental market within the real estate industry