As an international investor, you may be wondering whether investing in Malta real estate market is worth it. It is a question that you should ask yourself before making any decision.
The Maltese property market has remained relatively stable since the global financial crisis and this is one of the main reasons that local and foreign investors continue to purchase properties in Malta and Gozo.
1. High Returns on Investment
If you are looking for a reliable investment, then Malta real estate market is the place to be. It offers high returns on investment, which make it one of the best places to invest in property worldwide.
Whether you are looking to buy your first home or an investment property, you will find that Malta’s real estate market has a variety of properties available for sale at reasonable prices. Furthermore, the Maltese economy has remained stable since the global financial crisis, which makes it an ideal choice for investors.
With Malta’s strong economy, it is not uncommon to see property prices rising steadily in prime locations like Sliema and St. Julian’s.
2. Low Vacancy Rates
The real estate market in Malta has been one of Europe’s success stories over the past few years. It has experienced five years of consecutive growth prior to the global COVID-19 pandemic, both in the number of properties purchased and overall volume.
The locals in Malta love to invest in property and that is reflected in the steady demand for quality property throughout the island. In particular, the Sliema/St. Julian’s and St. Paul’s Bay areas are popular with both local and foreign buyers alike.
Despite this constant demand, the vacancy rate in Malta remains high at 18% of the total dwelling stock, a figure that is one of the highest in the European Union.
Nevertheless, the government’s housing policy has always stimulated homeownership and the authorities are currently issuing over 6,000 new building permits each year, despite the high number of vacant dwellings. This is a positive sign for the real estate sector, as it demonstrates that the government continues to support home ownership.
3. Stable Economy
If you want to invest in property, Malta is one of Europe’s safest markets. It has largely avoided the effects of the Global Financial Crisis, and the country’s economy is one of Europe’s strongest.
Malta’s economy is driven by tourism and foreign trade, which represent over 271.5% of its GDP (World Bank, latest data available). This makes it an attractive investment destination for high net worth individuals.
4. Low Taxes
Malta’s real estate market offers a number of attractive tax advantages to foreign investors, which is why it has become a popular choice for people looking to invest in property for sale. This includes low taxes, a mild tax climate, and visa-free travel opportunities.
It’s also possible to earn rental income and even purchase a second or third property to rent out, as interest rates in Malta are at historic lows. This means that investing in real estate is a very profitable venture and can yield unbeatable financial returns year after year.
Maltese citizens place a high value on home ownership, and this is reflected in the country’s housing market. It has been a buyer’s market for decades and is unlikely to change any time soon.