The Growth of the Commercial Property Market
When it comes to commercial property on the island, the news is good. Very good.
Malta has witnessed exponential growth in the commercial property market in the last five years. With businesses setting up around every corner, the need for good commercial property has risen consistently and this has, in turn, spurred developers to rise to the occasion. The result is that Malta is now home to a fantastic portfolio of commercial properties that meet – and exceed – the increasingly-sophisticated demands of buyers, investors and lessees.
“Intelligent employers want their employees to enjoy working in a suitable environment,” explains Frank Salt Real Estate’s commercial manager Rita Schembri. “Happy employees are highly productive, while extremely good retention rates ensure that the business does not suffer costly employee turnover with money spent on endless recruiting and retraining.
“Thus, employers have become keen on investing in their immediate environment, even if this comes at a cost – and this is exactly why high-quality commercial property has become extremely sought-after.”
Rita explains that there is a lot about a property that can help to make it a great place to work. “Employees love clean lines, open spaces, lots of natural light and extra comforts – such as decent restrooms, places where they can eat comfortably away from their desk and nice chill out areas where they can enjoy the company of other colleagues. Now, as a result of that knowledge, developers are responding quickly by incorporating many of these amenities into the designs of their new office projects.”
The importance of certain amenities varies depending on the people you plan to employ. “For instance, companies with a mostly-Maltese staff complement will know the importance of providing convenient parking for their team whenever possible. International teams, meanwhile, will perhaps be more focused on offices with views in a dynamic location, and with plenty of communal space.”
It seems the market has also demanded variety when it comes to the amenities available and the property locations. “From high-end properties covering thousands of square metres to compact spaces ideal for start-ups, there is constant interest in a wide range of styles,” Rita continues. “We’ve also seen an increase in the demand for hotels of all types and sizes – from guesthouses and boutique hotels, all the way up to five-star developments. This, of course, is in sync with the success the tourism sector has been experiencing and its envisaged growth in the next seven years.”
And it doesn’t stop there. Aside from offices and hotels, retail properties are also more in-demand than ever. “Chains already present here are keen to expand to different parts of the island, while new international brands are now seeking a presence here too. As a result, space in the major malls has become more premium, while we are also seeing increased demand in towns such as Mosta, Birkirkara and Paola.”
Regardless of the purpose of their business, company owners will have to consider whether they want to lease or buy. “This also comes down to their requirements as a company – as some business owners prefer the long-term stability of investing, while others prefer the flexibility of renting. Either way, a seasoned commercial property consultant will come in very handy as they will know the latest properties to have come onto the market, and will be able to guide you at negotiation stage too.”
For more information regarding finding commercial property in Malta, contact our commercial department.