Property prices on the Mediterranean island of Malta have risen again and, according to foreign property specialists Tribune Properties, there is still no end in sight to the market slowdown.
Recent government figures showed a sixteen per cent increase in the year to March 2006.
Tribune Properties says demand for property in Malta remains buoyant in the continental markets of the UK, US, Australia and Europe, and predicts a further ten per cent increase over the next year.
“We normally see a drop in inquiries a few months before prices level off,” explains Tribune managing director Roger Munns, “but demand from Malta this year is as strong as 2005 and at the moment we can only see that prices are going in one direction. at least in the short term, and that’s it.”
The Maltese government is expected to allow developers to use more land to build, but Tribune sees this as a negative rather than a positive move.
“Malta is an island with a finite amount of land, and although the Maltese government believes that releasing more land for construction and more properties is the answer to rising property prices, we believe this is the wrong approach,” says Tribune , “and in the end, further developments could have an adverse impact on Malta’s economy.
Tourism is an important industry for Malta, and tourists are not impressed by cranes and construction work while trying to relax or go see Malta’s historic sites, and if it is your first time visiting the island, there is a greater chance of let him do it. “It will be the last and will lose repeat business in the Malta holiday industry.”
Holidays in Malta
There has been some discontent on the island over rising property prices in Malta, and with fewer foreign buyers, the prospect of prices falling and more islanders being able to get on the property ladder could be good news, as Today’s tourist is often tomorrow’s property. buyer.
But there has been speculation for some time that low-cost airlines are going to start offering flights to Malta, and this will help Malta’s hotels and holiday market as more and more people consider three and four day breaks instead. of the traditional week or fortnight, boosting overall visitor numbers, especially if Air Malta and low-cost airlines raise the cost of flights to Malta to the levels seen on the Spanish islands.
Malta has traditionally welcomed the majority of its visitors from the UK, but this could be changing towards a more diverse mix in the coming years.
Last year saw a record number of visitors from Italy and more inquiries received from estate agents across the island from Scandinavia, Holland, France and Belgium, helping to increase demand for property in Malta.
A new “Smart City” is also being planned that could see Malta compete with the rest of Europe as a business destination for Internet and other high-tech companies. English is spoken fluently in Malta and, together with relatively low wages locally, foreign investment and 5,000 new jobs are expected to help the Maltese economy, which in turn will boost the property, hotel and vacation.
“Malta is currently at an inflection point,” YourMalta concludes, “and it remains to be seen whether the coming years will pave the way to economic prosperity or pessimism.”
Comment here