Malta real estate market overview
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Some experts say that Maltese property can be described as a solid investment and of its kind offers the best ROI. Its economy is one of the fastest growing in Europe. It faced fairly rapid economic growth in 2014 and 2015. By 2016, it was nearly 8% of annual growth. However, this growth slowed somewhat in 2016 (to 5%).
This applies according to figures from the Central Bank of Malta (CBM), which is now promoting price stability in the euro area and at the same time actively participating in the preparation and decision-making process for monetary policy in the Eurosystem.
Malta's economic state
Malta's recent economic growth exceeded the experts' forecast of 4% as its economy had grown at 3.2% annually (GDP growth rate) from 2005 to 2008, then contracted by 2.4% in 2009 and slowed in 2010 when GDP growth slowed , recovered was 3.5%, then in 2011 – 1.8%, 2012 – 2.8%, 2013 – 4.5% and 2014 – 2%, as the country's budget deficit grew to about 1.4% of GDP decreased in 2015.The data that can be found on the Maltese property market shows that property prices rose by almost 14% in the last quarter of 2016. Real estate prices increased by 7.24% in the fourth quarter of last year (2016).
Labor market Malta
The country's labor market also reflects its economic situation and the efforts of its government to stimulate the national economy by increasing labor force participation. The country's employment rate rose to 66.1% in 2016 from 63.9% in the previous year. The unemployment rate was very low, around 4.1%. The annual inflation rate in February 2017 was only a low 1.2%.Property market prices by property type
In this way, house price increases have been experienced by all property types. For example, apartments experienced a double price increase in the last quarter of 2016. They increased by 14.99%. Townhouses experienced a price increase of 13.33% in the same year. Townhouses, villas and houses of character had not so great price growth of around 1.96% in 2016.However, the highest price increase was seen in puppets, whose pieces increased by almost 21% in the same year. This was indicated by the individual investor program introduced by the government as part of its November 2013 budget.
Observations on the Maltese property market
According to Kevin Buttigieg, Managing Director of RE/MAX Malta, the country's real estate market is quite lively, despite the high prices, all kinds of purchases are made every day: commercial investments, foreign direct investments, real estate investments during the granting of residence permits under the IIP Citizenship Scheme, etc .However, there are still many restrictions on property ownership in Malta as EU citizens and foreigners can usually only buy one property in the country (several in specially designated areas such as Chambray, Cottoenra, Manoel Island, Portomaso and Tigne Point).
The past experience of the Maltese property market
There was strong growth in the years 2000-2007 observed by both experts and laypeople in the Maltese property market. The overall house price index rose by 78.9%, with prices also increasing in terraced houses - 105.3%, maisonettes - 81.4%, apartments - 83.3%, terraced houses and villas - 71.9%.Real estate prices continued to rise from 2005 to 2007. In 2008, the country was under the influence of the 2008 global financial crisis due to its reliance on tourism and foreign trade. In 2009, the country recorded a decline of 2.13%. After rebounding in 2011, house prices fell by 2.2% in 2012. This period was followed by the introduction of new property-related measures by the Maltese government. Prices continued to rise in 2014-2016 as well.
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The Malta real estate market presents a dynamic landscape characterized by a blend of historical charm and modern investment opportunities. With its strategic Mediterranean location and robust economic growth, Malta continues to attract both local buyers and international investors alike. Properties in sought-after areas like Valletta and Sliema command premium prices, driven by a combination of scenic views and urban conveniences. For those seeking alternative European destinations, exploring opportunities like https://get.properties/real-estate/portugal/ericeira-property-for-sale/ showcases diverse options. Malta's real estate sector remains resilient, offering a spectrum of choices from traditional townhouses to contemporary waterfront developments, appealing to a wide range of discerning buyers.