Malta – A Lucrative Property Market
When one relocates to Malta, they also think property – either for sale or to rent. Yet property in Malta can also be a solid investment. Back in 2009, it was hardly affected by the global financial crisis, particularly thanks to sound banking ethics and consistent capital growth. For the past decade, property prices have always remained stable or registered an increase year-on-year.
Catering for all tastes and budgets; from the uber futuristic, ultra-modern, to the charming and traditional, Malta offers a great selection of property types. Demand is fuelled not only by the local buyer, but also by the rental investment market, the expat community taking up employment on the island, and by foreigners taking advantage of Malta’s residency programmes. The influx of foreigners greatly contributes to the expansions in Malta’s luxury real estate, with demands for luxury apartments and houses have risen to new heights over the last couple of years.
Looking at the latest figures issued by the Central Bank of Malta, house prices in Malta rose by 10.83% (9.51% inflation-adjusted) during the year to Q1 2019, or 4.72% (6.56% inflation-adjusted) looking just at the first quarter of the year.
Malta´s buoyant house price rises over the last five years have been supported by a number of factors: a fast-growing economy, low-interest rates, rising disposable income, an optimistic investor approach and the rising number of foreign workers in the country.
Prices were also boosted by government measures including the exemption of first-time property buyers from a 3.5% stamp duty on the first €150,000 of a new property´s value, which has been running for the last 5 years.
In 2018, another scheme was introduced, making second-time buyers eligible for a stamp duty refund of up to €3,000 if they plan to replace their current residential homes. Homeowners with disabilities can avail a higher stamp duty refund of up to €5,000. Other exemptions and preferred stamp duty rates apply for specific types of properties or particular areas.
Want to learn more about the property market in Malta? On Thursday 26 September 2019, Frank Salt Real Estate is organising a free seminar in London hosted by the Malta High Commission with the participation of John Huber and Associates, a Maltese advisory firm that specializes in tax services with special focus on tax issues related to relocating or taking up residency in Malta.