Prices in the Maltese property market are still rising and rising well at this time. In 2004 Malta was amongst the highest in the EU for price rises and statistics indicate that these price rises are likely to continue for a while. Statistics from the Maltese government also show an increase of 16% from January 2006 to March 2006, with the trend continuing upwards. Demand for property in Malta is plentiful and if forecasts are correct, prices could rise between 8 and 10% more this year; with buyers from countries such as the UK, US, Australian and many European countries, continually interested in this Mediterranean islands potential.
Demand for real estate, apartments and villas in Malta is buoyant this year and the Malta government are thought quite likely to allow developers to use even more land for building. In a country which is the third most populous in the world , this may mean the island becomes even less spacious although investors are expected to continue to snap up properties.
Access to the island of Malta is always of importance to foreign investors investing in Malta, and speculation still floats around about the the possibility of Easyjet flying to Malta from 2008; a move which could significantly increase the volume of visitors to Malta. Tourist would suddenly be able to afford long weekends in Malta with cheaper flights.
The prices of property and real estate in Malta could be affected with the January 2008 situation whereby MALTA will likely join the EU. In the past, the prices of property has risen quite well in many countries with the introduction of the Euro, and others when they joined the EU.
When the Euro was introduced on January 2nd, 2002, the value of property in countries such as Italy, Ireland and Spain rose very well. Prices of property in Sicily Italy for example, have risen on average about 20% over the last 4 years. A different situation is whereby countries have joined the EU and this has also had an effect although less significant than previously expected. It was expected that prices would rise dramatically as countries such as Hungary joined the EU a few years ago. Prices have risen but more steadily than expected.
With Malta and Gozo likely to join in 2008, it is certainly likely to be a positive rather than negative for the Maltese real estate market. With excellent weather and a relaxed pace of life, a lot of interest exists in Malta and Gozo, with rental opportunities also excellent. So, do not miss the boat - no pun intended! |
