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The lucrative rise of Malta’s “buy to let” property market
Rent Property in Malta – Throughout the last decade, the Maltese property market has experienced quicker development than that of several other European countries and such development is expected to continue in the years to come, making real estate “buy-to-let” investments on the island very lucrative. Both the residential and commercial property markets have experienced exceptional growth and historic heights as a result of increased demand for office space and labour. The magnitude of construction of modern buildings to satisfy demand is remarkable. The popular towns of Sliema and St.Julians have seen more apartments built this decade than in the previous years combined. Adding more supply of quality homes and commercial office space has only helped satisfy the ever increasing demand and has not resulted in a reduction of the growth of rents. Our leading letting department at Perry estate agents recorded an increase in rental prices particularly in the last four years. Rental prices have increased by approximately 30% in the last four years alone. If the trend for economic growth continues at its current pace, companies will need even more office space. In the prime central letting market including the harbour areas of Valletta, Ta’Xbiex, Gzira, Msida, Sliema and St.Julians the take-up of new rental tenancies keeps increasing dramatically, as a result, rental prices are holding up. Other attractive villages and towns further inland, are not far behind either with demand for more traditional houses of character and modern villas in established residential neighbourhoods also very strong, particularly those with large outdoor areas including courtyards and especially those having sizable gardens and pools.
The strength of the rental market, helping landlords achieve healthy monthly returns can be attributed to the many people moving to Malta for work in various industries. From finance to IT, to maritime and aviation as well as the all-important gaming industry, the majority of the islands jobs fall into the service sector. Ultimately more people, jobs and wealth creation has helped increase the demand for quality rental accommodation and drive the performance of our letting department to record levels. The long lets market is also being further boosted by a number of other factors, including the Individual Investors Program (IIP) or “citizenship by investment program” which has proven to be a huge success and has attracted high net worth individuals to lease and/or buy luxury properties in Malta. Property in Malta still remains noticeably more affordable to purchase when compared to real estate in major European Cities, with the rental growth outlined above, this also means that investors will be able to achieve higher returns for their investment. Buy to let investors have been able to achieve an average yield of 5-7% in recent years besides benefiting from the great year-on-year capital appreciation on the value of the property, which has averaged approximately 6-7% per annum in recent years. To see how you can achieve strong monthly returns in an environment with an economy that is only likely to grow further, please get in touch with our professional letting team backed by over 35 years of unparalleled personal service to the real estate industry, where you are sure to find all the assistance you require.
Written by Robert Spiteri Paris – Managing Director & Head of Letting Department
Contact us here or call (+356) 2131 0800 / 0088 for both sales or letting inquiries.
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