It may just be the best time ever to buy a property in sunny Malta!
Malta is one of the smallest countries in the world and located in the heart of the Mediterranean, on the crossroads of Europe, Africa and the Middle East. As a full member of the EU since 1 May 2004, this picturesque archipelago is renowned for its warm climate, scenic beauty, residency programmes and an extremely advantageous tax regime.
What people don’t know about Malta.
What many people do not know is that Malta’s real estate sector is one of the most active and dynamic in the whole of Europe. It has a reputation for being super resilient, having survived the financial crash of 2008 and recently the slump caused by the Covid pandemic. In fact, real estate investment did so well during 2021 and onwards, that for countless consecutive months the amount of Promise of Sale Agreements signed, broke records on a monthly basis.
The Maltese are also well-known for their love of investing in property rather than having money sitting idly in the bank and this has created an incredible amount of generational wealth over the years. The average return on capital growth for real estate is somewhere in the region of 4%-6% which may seem somewhat conservative, but there were many years that this was far into the double digits.
Malta’s Building & Construction industry
Pressure on Malta’s building and construction sector is currently fuelled by an unprecedented demand from the rentals market, driven by foreign workers relocating to Malta that need accommodation and also the country’s vibrant leisure and tourism sector. The entire country is very popular as a tourism destination with its crystal clear waters, rolling hills and historic architecture. The capital Valletta is experiencing an unprecedented tourism boom since global travel has gone back to normal and whenever you open a magazine, there seems to be an article about Malta and its irresistible allure. In 2019, pre-pandemic figures showed that more than 3.52 million tourists visited the country and for the first quarter of 2023, the figure is already standing at nearly half a million, with this anticipated to pick up considerably for the rest of the year.
For anyone wanting to invest in a holiday or investment property in Malta, the buying process is simple and straight-forward. Anyone who is not a citizen or long-term resident who wants to buy a property that is located outside a Special Designated Area needs to apply for an AIP (Acquisition of Immovable Property) permit and there is a minimum purchasing limit of about €155,000 at present. If you buy a property in an area classified as a SDA (Special Designed Area), you can buy without the need of an AIP permit, buy as many properties as you like and you can rent it out immediately.
Malta’s Biggest real Estate Group
Malta’s oldest and biggest real estate group, Frank Salt Real Estate, has been at the forefront of assisting foreign and local buyers for more than 50 years and offer a full-rounded service. The group has 16 offices spread over the islands of Malta and Gozo and when dealing with them, you will have access to the largest database of properties: developments, residential, commercial and letting. In addition to real estate sales and rentals, Frank Salt Real Estate can also help with planning and booking initial inspection visits to Malta, accommodation, residency permits and programmes and even applying for Citizenship, given that you have met all the required criteria.
Discover the Mediterranean’s best-kept secret when it comes to investing in a dynamic real estate market and come to Malta for your next holiday. We can guarantee that you will fall in love with the people, the towns and villages and most likely end up buying your own slice of heaven on one of Malta’s idyllic islands.