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Real Estate Developments In Malta
THE INCREASING IMPORTANCE AND SUCCESS OF PLACEMAKING WHEN DESIGNING REAL ESTATE DEVELOPMENTS
Experience has shown that earlier capital investment may bring outstanding benefits to real estate developments in Malta.
The attraction of a new residential project and the measure of the developer’s success and indeed potential yield, once offered on the property market, is no longer governed solely by the quality of materials and finishes used to build residential developments. Developers should not make the mistake of overlooking the importance of the quality of the surroundings and amenities offered by their development no matter the scale. Superior surroundings and amenities make for excellent selling points in what is becoming an increasingly competitive property market.
In recent years many more developers have realised that investing earlier in key and innovative features, that give residential developments a sense of place and community as seen in every desirable town or village pays off.
Developers are giving more importance to creating a symbiotic relationship between residential and commercial development integrating shops, services and community facilities within the coherent design. This formula has proved hugely successful for the major projects. Residents value local shops, leisure facilities and open spaces. Our statistics show that investing in placemaking delivers an uplift in sales values and indeed potential rental yield where the conditions are right, making such developments more desirable addresses for prospective buyers including ‘buy-to-let’ investors seeking to maximise returns on their investment. It is also evident that prospective tenants are willing to pay a premium for an address offering amenities and added comforts. The sooner the additional investment is made, the earlier the uplift in values can be achieved.
Portomaso in St Julians
What some developers fail to realise is the fact that when building large urban developments, they are not just selling homes however they are selling a vision for the future and a lifestyle.
Presenting the residential homes on the market as a privileged destination with a character of its own is crucial to attract the maximum demand and capital appreciation in the desired time frame, particularly if the aim is to draw more affluent and discerning buyers as well as real estate enthusiasts from further afield.
Today more and more developers are taking a multi-faceted, conscientious and resourceful approach to the design and planning of the development area and public space they have available. Prospective investors/buyers are attracted by lifestyle developments that take a varied/mixed-use approach as they appreciate that such projects seek to capitalise on the community’s potential with the aim of creating public spaces that promote their happiness and wellbeing. This is done by creating much needed open spaces: landscaped gardens, water features, squares, courtyards, swimming and sports facilities, parks, gardens, restoration of historical attractions and characterful features and waterfront passageways, to mention a few. Such features make the particular development a cut above the rest and as a natural result, attract prospective buyers and tenants to such projects over others and this for the simple reason that they offer pleasurable and unique features on an otherwise densely built and populated island.
Placemaking involves consideration of the physical, environmental and social characteristics of a site, in order to develop a sustainable vision for any new development.
Given what such careful planning has managed to offer and achieve in terms of desirable surroundings, it is hardly surprising that such developments, the majority of which have been given special designated area status by the government, have proved to be the most popular amongst investors who have been attracted to our shores from all corners of the globe. Such real estate investors who choose to place their money in such mixed-use developments have experienced the best capital appreciation and rental yields over time and continue to do so.
Many developers are indeed seeing the value of remodelling important sites and should view themselves as curators and custodians for future generations by increasing public spaces, offering first-class facilities and restoring, embellishing and preserving sites of historical importance, such as batteries and fortifications of extreme heritage value, found to occupy an area within the site of the development. Developers are realising that in doing so they are shaping the atmosphere, experience and identity of an area offering unique selling points and a superior product on the market, maximising the potential of their offering and investment, rather than just erecting ordinary large buildings. It is important for Placemaking to become a strategy adopted with enthusiasm by all developers looking to maximise the value of the property and attractiveness of the sites they develop.
For more information about Malta’s residential developments and Special Designated Areas click here
Written by Robert Spiteri Paris – Managing Director of Perry Estate Agents
Tel: +356 2131 0800 / Email: firstname.lastname@example.org
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