The future of the real estate market
If we look at some of the advice issued by investment specialists from all the global financial centers such as London or Wall Street, some of these are leading figures in the world of finance advise investors to go for precious items like metals such as gold in times of doubt. The latter is also dependent on daily fluctuations of world markets which are not in the hands of any local property buyer or seller. With this being said, we have to point out that it is a clever decision to spread one’s investment portfolio at all times, in order to include a variety of commodities, as it can be a safer option: never put all your eggs in one basket as they can break.
What really and truly counts in Malta’s favor is its real estate track record. The local Maltese market has shown that it can compete and most certainly outpace, most other investments even on a global scale when it comes to a return on one’s investment – ROI. Investing in a plot or block of apartments in an ideal rental investment area is super. Tourists love to look for apartments for rent Malta when they would be visiting on holiday or for work. Here is some data to support what has just been said:
- Malta’s property market saw a large increase of 10.83% (9.51% after being adjusted for inflation) for the first quarter of the year in 2020, according to the Central Bank of Malta, which is the bank that takes control of these issues.
- For the years 2000 to 2007, the local property market experienced very strong market growth with our overall house price index rising by an amazing 78.9% (53.4% after being adjusted for inflation)!
- Even during the world financial crisis of 2008, the Malta real estate market fared better than most and was quickly back on the road to recovery.
- On average and to even things out, Malta’s property market saw an average growth rate, year-on-year, of 5.4% from March 2001 to Jun 2020.
These figures show a stable and healthy long-term growth rate over a long period of time, which is exactly what investing in real estate is all about, making sure you invest in a strong and stable market. The Maltese market is a perfect example of this, which is for this reason that many are investing in property in Malta. Any wise property investor worth their salt knows that property starts yielding positive returns after circa 3 years and then should only increase from there! But this always depends on what type of property you decide to invest in.
Property market Malta has stood the exam of time and has always been the go-to investment during times of trouble, but we must keep in mind that, similar to any other market, this is subject to demand and supply. At the present time, due to Covid-19 and its effects on the Maltese islands, there is a lower demand for rental properties due to the shortage and lack of foreign workers and what is now only a small percentage of foreign tourists, but this is slowly stabilizing and will no doubt pick up when we either get rid of Covid-19 or get an effective vaccine which will hopefully make things return to normality.
RE/MAX Malta has been in the Maltese Market and leading the market for many years. Whether it is a property for sale in Malta or rent, we are there to make the sale and please all parties involved. With this kind of experience, history, and knowledge of Malta’s property market built over this past half a century, we can confidently say that the best time to buy and sell property in Malta is always now!