No better time to invest in rental property!
Over the years, there has been a remarkable increase in the demand for rental property due to an influx of foreigners who have relocated to Malta, for business and employment purposes or in order to retire on the island.
Local demand has also increased, as youngsters are opting to move out sooner or even rent property prior to purchasing their first home.
In light of all these changes, it would be wise to consider investing in a rental property in order to benefit from a consistent stream of income in the form of rental payments.
Currently, the property market is flourishing and there is an array of good value properties available, which can guarantee a successful investment. The rental returns for a good rental property in one of the many sought after locations around the island, is estimated to be between 3.5%-6% per annum. This obviously depends on the level of furnishing and finishing of the property as well as the location, with St Julian’s, Sliema, Gzira, and the surrounding areas being the most popular due to their vicinity to most offices for foreign companies as well as the University of Malta.
The properties found in the above locations tend to be on the pricier side, which is why it is important to note that smaller units in the region of €120,000 to €180,000 could also yield very attractive rental returns. By focusing on making the property as accommodating as possible, with all necessary furnishing and appliances, your property could be very competitive. Nowadays, it is possible to provide a fully-furnished apartment with all amenities at very reasonable costs.
Rental properties in the north and south of Malta have also become very popular, particularly along the seaside. Localities such as St Paul’s Bay and Mellieha have become coveted locations, particularly amongst those searching for a holiday home while popular locations in the south include Marsascala, Airport vicinities and the Three Cities, where one can not only find recent developments to rent but also traditional townhouses and houses of characters, a delightful experience for foreigners wishing to rent a unique home.
When considering the capital appreciation of property, which on average increases by around 5% per annum, it would be a shame to miss out on this fantastic opportunity to invest in property and earn a consistent income. Frank Salt Real Estate can also help with the management of your property, including the entire undertaking and day-to-day running and maintenance that one encounters when renting out property.
Keep in mind that the demand for rental property is relentless and growing, which ultimately drives up rents, especially if the supply cannot keep up with the incessant demand. This is what is happening right now, which is why we urge you to seize this opportunity and invest in rental property.