Stable Property Prices in the first half of 2021
The Maltese property market kept its momentum during 2021 despite the pandemic fluctuations and the closure of borders. The real estate business plays a main role in Malta’s economy that went through a speedy progression in the past decade. This gives more confidence to consumers who are looking for a solid investment that aims to last for the years to come.
In the first quarter of this year, the property price index has seen a rise of 4.7% when compared to the first quarter of 2020, as reported by the NSO in July 2021. This PPI is generated on the sales of apartments, maisonettes and terraced houses only. The major element for this rise is because of new developments seen in the Apartments’ price index, documenting an annual price increase of 6.2%. Apartments are the most popular with residential seekers as nowadays luxurious properties are not limited to Villas, but several new blocks are uprising in high standards with a luxurious flair, some enjoying iconic sea and land views of the historic Maltese islands.
Last July, the market has recorded one of the highest final property deeds and promises of sales signed in recent years, showing an increase of 36.4% in values when compared to July 2020. The value of the final sale agreements in July only amounts to €290.5 million.
A total of 1,354 final deeds has been signed and 1,105 promises of sales were registered. 93.6% of the final deeds were made by individuals purchasing their first home or their second property for investments, with companies accounting for the rest.
Given the unforeseen Covid circumstances in 2020 which left the world at standstill, the Maltese property market has been recovering strongly in the leasing sector. The re-opening of the air and sea borders has re-invited several foreign workers back to the prospering islands, many to work in the iGaming industry. Outlining the most popular localities amongst rental investors, St Paul’s Bay ranks among the highest sought-after area, followed by Hamrun, Sliema, Mosta and Qormi.
Real estate in Malta was the least affected sector by the preventive measures introduced by the government during the pandemic. When some restrictions were lifted the property market expanded considerably. In Malta, homeownership is an essential step within the Maltese culture which stands at 76.9% (2019 NSO Main Dwellings report).
The property business is always on demand, therefore new developments are continuously growing on the high rise to continue to deliver specialised residential and commercial investments that attract foreign stakeholders who are after the luxury market.
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