Malta has seen the strongest growth in property prices in European Union countries and recent news could help double housing inflation in the coming years.
Figures released by the European Mortgage Federation show that the increase of more than eighteen percent in Malta was higher than that of France and Spain.
Two EU countries, Germany and Austria, experienced declines in house prices, while Portugal, Greece and the Netherlands barely stayed in positive territory.
And the island’s real estate insiders predict that strong growth could last for a few years, giving Malta the potential to be seen by investors as a good place to shop.
Tribune Properties, which specializes in property for sale in Malta, reports that the first quarter of 2006 has seen a good level of activity, with the upper segment of the market performing particularly well.
‘The first weeks of January were slower than the same period last year,’ says Michael Johnson, Tribune’s chief executive, ‘but since then the number of sales has been the same as last year, very good, but villas with a starting price of one million euros and more meant an increase in activity and a good number of sales ”.
Hotels and holidays in Malta
The independent information site on hotels and holidays in Malta http://www.yourmalta.com also reports an increase in interest in its property pages compared to the first quarter of 2005 and the number of page views has increased by almost one third .
Sustained property inflation at levels seen in Malta is rarely seen in other countries, but new economic activity on the island could keep demand for property at good levels for a few years.
A new “smart city” is planned which could see Malta compete with the rest of Europe as a commercial destination for the Internet and other high-tech companies. English is spoken fluently in Malta and coupled with relatively low wages locally, inward investment and 5,000 new jobs are expected to help the Maltese economy, which in turn will boost the property, hotel and holiday markets. .
The tourism industry is vital to the Maltese economy and the arrival of low-cost airlines offering new flights to Malta is expected to benefit the Maltese holiday industry and Malta’s many hotels.
If Malta can combine the attractions of a Mediterranean tourist island with modern infrastructure and high-tech businesses in a low-tax environment, today’s property prices may seem like a bargain five years from now.
The introduction of cheap flights to Malta from the UK will open the possibility for more shoppers to search the island for holiday homes that can be used for long weekends, and Malta’s hotel industry could reap the benefits of the tourist. 3 years. and 4 days. see the island as a viable place to visit.
Malta has traditionally seen the majority of its visitors from the UK, but this may change to a more diverse mix in the coming years.
Last year saw a record number of visitors from Italy and more inquiries were received from estate agents across the island from Scandinavia, the Netherlands, France and Belgium, helping to increase the demand for property in Malta.
After a few years of wondering how Malta would fit into the modern world, Malta’s real estate agents, hotel owners and the holiday industry are starting to see the future with some optimism.