When it comes to investing in property, more foreign nationals than ever are interested in Malta as their location of choice. If you are one of them and you are not sure where to start, this guide will take you through the process of property investment in Malta.
A few countries in Europe that tops the list for rental investment are Malta, Portugal, Spain, and Italy. Although property prices may be favourable in some of these countries when it comes to rural areas, the true reflection for rental properties bought as a business concern i.e. renting them out is only comparable when they are located in more cosmopolitan areas.
This is due to their proximity to airports, beaches and commercial centres providing access to shopping and entertainment as required by most tourists. The table below looks at the comparison of popular cities in their various countries and prices are based on monthly average rental asked.
May 2019 saw nearly 9000 short-term listings on Airbnb alone for Malta and the majority of these are centred around the usual tourist areas and boasts around a 70% occupancy rate. The average price per night is around the €80 mark and this is incrementally increased by extra bedrooms, having a pool, views and the ability to accommodate additional guests. The majority of these rented out properties are entire dwellings such as apartments, houses of character and villas.
More than 2,100,000 tourists visited the islands during the first nine months of 2019 and Malta’s increasing popularity has turned the short-term let industry into a huge business. As a result of this, the demand for rental properties increased dramatically, especially in the buy-to-let category. Below are the averages rental attained by Airbnb per night, per country in £ and €.
Malta’s property market has been bullish and buoyant for many years now and it is unlikely the situation will ever change. Buyers, sellers and landlords have realised unbeatable financial returns year after year and this is likely to continue, fuelling the current construction boom.
Another plus point in Malta is that should you have owned a property for more than three years, the capital gains tax is more favourable. Combine that with the proven capital appreciation and many an investor stands a very good chance of seeing exceptional returns on their investments. This is not the case in many other European countries and the Maltese exception has catapulted the country to the top of the ladder when it comes to the capital appreciation of real estate.
According to the latest figures, the most dramatic increase occurred in the last five years when tourism figures increased dramatically (excluding the recent influence of Covid-19). This caused the building industry to go into overdrive, trying to supply enough new properties for a seemingly insatiable buyer’s market and this is unlikely to end soon.
We will navigate the market to find the right opportunity for you. In the meantime, here is a very small taste of what of properties and investment options Malta has to offer.