Buying Real Estate in Malta

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This article is about buying real estate in Malta. See also the general article on housing and accommodation in Malta.

Overview of the Maltese real estate market

Over the last couple of years, the market has been growing constantly. The introduction of the Euro in Malta led to increase liquidity in the market and increase buyer confidence to invest in property. Malta has never attracted hoards of buyers. There are only about 4,000 to 5,000 Brits and Irish expats out of a population of over 400,000. This is why the property market has proved to be so resilient in the face of the recession. This does not mean that Malta was not affected – to some extent it was.

The property market during the financial crisis

Malta’s property market experienced a slowdown in 2009 when compared to previous years – but relatively speaking, the decline has been minimal. Infact, we can already see signs that the property market is once again picking up, at a steady rate. This is because the domestic market in Malta has remained healthy with one of the highest rates of home ownership in the world. Those who have invested in Malta in the past, have seen a significant return on their investment.

Annual property value appreciation

Property normally appreciates annually at an average rate of 8% to 10% (with the exception of 2009 where property appreciated at a much lesser rate due to the recession). Another contribution to an increase in property demand was the introduction of low cost airlines to/from Malta, making it easier for people to visit, while increasing letting and investment. The number of people who buy for investment purposes is relatively high, mainly due to a healthy rental return, at 4% to 5%, as well as capital appreciation adding to the value of the property.

Locations in Malta and Gozo

The north of the Island, Gozo, Sliema and St. Julians, and some areas in the South are particularly popular with ex-pats. Localities in the north of Malta, namely Qawra, Bugibba, St. Paul’s Bay and Mellieha are mostly sought after for holiday homes, since there are many seaside properties, and are considered very popular with British tourists. A landmark development in Mellieha is Tas-Sellum which is situated a few minutes away from Malta’s largest sandy beach.

Sliema and St. Julians are considered the fashionable district with the main centres of employment and main entertainment hub located here. It is considered as one of the up market areas for property. It is very popular with British nationals who are seeking an investment, with high-end Developments such as Portomaso, Pender Gardens, Tigne Point and Fort Cambridge taking place. These developments are all situated in Special Designated Areas which means that a foreign national can purchase more than one unit. There are also a good number of seafront luxurious developments available for sale and to let.

Gozo

Gozo is very sought after as a retirement destination, with its charming and quaint farmhouses available with pool.

Accessing Malta

Accessibility to/from Malta is not a problem. There has been a growth in the availability of flights, which has had a downward effect on costs. Ryanair now operates a daily service from Luton and has scheduled flights from Edinburgh, Bristol, Leeds and Bournemouth. Air Malta, Malta Bargains and the charter lines have regular flights from most UK airports, including Glasgow. Easy Jet also operates scheduled flights to Malta from Liverpool, London, Manchester and Newcastle.

Malta as a place to live

Malta is an island where the sun shines most of the time, the people are friendly, the sea is clean and it is safe to walk in the streets at any time of day and most of all, people speak good English. Being a small island nowhere is so very far from anywhere else. It is not hard to appreciate why a steady stream of people has chosen to retire and buy a second home in Malta over the years.

Good integration of foreigners

The fact that there are no foreign ghettos in Malta ensures that everyone integrates. Many foreigners consider this to be the fun part of living in Malta, as there is great rapport between locals and foreigners.
It is a very sociable island with lots of culture, art exhibitions, theatre and concerts. Twenty minutes to a restaurant is a long way. Eating out or stopping for a coffee is an excuse to meet up with friends and bump into people you know.

The pace of life in Gozo

Gozo, the sister island is Malta several years ago, where the pace of life takes a long step back and many Maltese go to Gozo for the weekend to wind down. Old traditions are still very much alive on Gozo and neighbours find it no problem looking after vacant properties when the owners are away.

Living in Malta, compared to other European countries

Generally speaking, Malta competes with similar countries in terms of weather and relative size. Other aspects worth mentioning which clearly make Malta stand out are the following:

Driving on the left just like in the UK
EU member country offering political stability
Although Maltese is the national language, English is widely spoken and all Maltese speak fluent English. Other languages are commonly spoken.
Excellent national and private hospital and medical services.
Easy to get help and services
Abounding with history
Excellent social life for all age groups and a large selection of top quality restaurants and cafes with diverse cuisine.
Surrounded by crystal clear seas and several sandy beaches.
Very good sporting facilities. World class diving, sailing and other water sports.
Excellent schooling to above UK standards in English speaking Schools and university.
Low cost of living and a wide variety of properties available in all price ranges.
Very stable property market offering steady capital growth.
Daily flights to all major European and North African airports with low cost airlines also offering a regular service
Excellent residency conditions with very low taxation
No rates or council taxes are charged in Malta.

List of real estate agencies in Malta