Malta Property Prices Review 2017
During the 2007-2008 global financial crises, Malta’s economy remained relatively stable. This was also reflected in the property market. Post such global crisis, the Malta property market has gone from strength to strength, with 2017 being one of the best years for the property market and 2018 shaping up to be another high profile year.
2017 was an outstanding year due to considerably increased sales, recruitment of more human capital in the real estate market, more developments being approved, large high profile developments in the pipeline and an increase in buy-to-let properties.
Most of the above success can be attributed to various sectors including:
- the Individual Investor Programme (IIP)
- stamp duty exemption for first-time buyers
- a low interest rate environment, which led to higher lending for house purchases;
- growth in disposable income; and
- an increased number of foreign workers in Malta.
Malta Property Prices Review, Central Bank
According to fresh information by the Central Bank of Malta (CBM) on 2017 Q3, residential Malta property prices are still going up, but at a slower pace than before.
The National Statistics Office's Property Price Index, released in the first week of February 2018, is based on actual transactions involving apartments, maisonettes and terraced houses. Data confirms that property rose by 4.1% on an annual basis between July and September 2017, following a 4.5% increase in the second quarter of 2017. This rate of increase was in line with that registered in the euro area, which also stood at 4.1% in the third quarter of 2017.
Such steady increase in Malta propert seems to have been supported by a number of factors in Malta, including the government’s scheme for first-time buyers and a low interest rate environment which makes property a more attractive asset.
The Central Bank of Malta provided that resilient labour market conditions and robust growth in disposable income, together an increase of foreign workers on the island and, to a lesser extent, the Individual Investor Programme, have all contributed to a steady increase in Malta property prices.
It added that "At the same time, the strong growth in residential permits recorded in recent quarters should take off some of the upward pressure on house prices, as new construction activity counters excess demand for property".
Malta Property Prices Review, Eurostat
Houses prices in Malta went up 4.3% in the third quarter of 2017 compared to the previous three months, the second highest increase in the EU, according to official statistics.
Eurostat reported that, residential prices, rose by 4.1% in the euro area in the July-Septemer period of 2017 compared with the same period in 2016.Compared with the second quarter, they rose by 1.7%.
The highest annual increases in house prices in the third quarter of 2017 were recorded in the Czech Republic (+12.3%), Ireland (+12.0%) and Portugal (+10.4%), while prices fell in Italy (-0.9%).
Compared with the previous quarter, the highest increases were recorded in Ireland (+5.7%), Malta (+4.3%) and Netherlands (+3.7%), while decreases were observed in Romania (-1.6%), Finland and Italy (both -0.5%) and Cyprus (-0.3%).
