What’s seems to be next for the property market in Malta?
Beating all the odds the past few years, Malta’s property market is still a very good investment choice for the rest of 2023 and beyond. For the longer term, there are some factors that could influence the market such as:
Interest rates: This has remained relatively stable in Malta but interest rates are projected to trend around the 3.5% mark for 2023 and in the region of 2.75% for 2024, according to tradingeconomics.com’s econometric models. This will benefit the property market as lower interest rates bode well for property investors and those buyers that make use of a home loan when purchasing a property.
Supply and demand: Logically, should the demand for properties continue to grow, it will support the upward trend for property asking prices but Malta also has an extremely active rentals market due to tourism, expats and foreign workers wanting places to stay. This pressure on delivering more properties, especially to the rentals market, has also helped to sustain and increase the average asking price and will continue to do so in the future.
Sustainable development is at top of the agenda and this will undoubtedly be reflected in the housing market in general. Malta is fully committed to the idea of sustainable development and this in turn will see to the delivery of more green buildings and developments to the market. Consumers are also on the lookout for properties that are better insulated against heat and cold as this result in lower electricity consumption, thus saving them money and it being kinder to the environment. Having the best classification possible on your property’s energy performance certificate (EPC) will be a huge factor in the future.
The rise of co-living spaces
Co-living spaces are becoming increasingly popular in Malta due to high rental asking prices in the most sought-after and popular areas. Not only are these spaces more affordable, they offer more flexible accommodation and far less formalities in order to secure a living space in Malta.
Smaller could be better for some
In Malta the average standard has always been for bigger properties, but this trend may well be changing due to the cost adhered to them when buying or renting. First-time buyers such as young professionals, newlyweds and singles are on the lookout for affordable, modern, smaller properties such as studio and one-bedroom apartments. Not only are these properties cheaper to buy, they are also perfect to keep and rent out in the future as their owners move up their respective corporate and professional ladders to bigger and better things, including property.
Better design, functionality and quality
As buyers have become more informed about aesthetics, practicality and pay a lot more attention to detail, they expect properties to be well-constructed from quality materials and to have the best of finishes and fittings. Buying properties of which the construction includes a measure of natural materials such as wood and stone are on the rise as consumers want interiors that are warm and inviting. With so many people working according to the hybrid model, the home is now also expected to be a place that must be visually comfortable, functional and fully practical. Any home nowadays needs to incorporate spaces that are perfect areas to which one can assign multi-purpose use: gone are the days of working at the kitchen table! The same room must now be able to serve as a study, a yoga room or multimedia space, depending on what owners want to do at any specific time.
The importance of outside space, well-designed kitchens and bathrooms
If there are three things we have learned to appreciate from the past two years, its having a property with an outside space, a nice kitchen and a luxurious bathroom. Property buyers want efficiency, minimalism and what is called “quiet luxury”. Kitchens and bathrooms do not need to be vast in size but what they must have is loads of countertop space, hidden storage, seamless joins and the best fittings and fixtures available. What people are after is the feel of an upmarket hotel or spa with neutral colours, large quality tiles and surfaces that are easy to maintain and clean. All of this contributes to a life of simplicity, something so important for today’s busy buyers.
Buyers want quality, simplicity, value for money and above all a product that will last for years to come. Thankfully the construction industry world-wide heeded the call and buildings that consist partly or are fully built from eco-friendly materials, take the green initiative seriously and are well built and designed are extremely valued and sought-after. Properties bought by the general public in the near future may just be that bit smaller in size, but what they lack in square meterage they will make up for in longevity, desirability and sizable investment returns for their owners.