As part of the consultancy work at Dr. Werner & Partner, we have noticed that the price of real estate has been rising over the last few years. The high-end real estate market is flourishing especially, and often yields double-digit returns. However, before making a hasty purchase, it is crucial to take a closer look as it would be in any other potentially promising real estate market. Even though the economy in Malta is growing at a steady pace, and recent figures have been looking promising, not all that glitters is gold, and not every property is profitable.
I can understand very well if business owners want to move to Malta. Starting up a company and doing their business under the Mediterranean sun is an attractive prospect. But why save taxes in the first place, only to waste these savings on the wrong property purchase?
You can expect to pay upwards of €500,000 if you want to purchase a penthouse in a popular locality, and prices can range anywhere up to €2,000,000 if we are to believe the experts at Engel & Völkers’ real estate agency in Malta. Property prices have increased about 15% over the last three years that I have been on the island.
It is important to differentiate between a growth-related increase and inflation due to speculative activities. Malta is not set be the victim of a speculative bubble, but it is well-known that the Maltese are very property conscious, and that they like to invest in real estate on the island – sometimes even at extremely inflated prices.
However, Maltese property owners are rarely interested in high-end real estate, due mainly to the high prices. Rather, it is international entrepreneurs who are either looking for an investment or wishing to settle down on the island for other reasons. The Global Residence Programme allows real estate buyers in Malta to acquire an unrestricted residence permit, making it a very interesting option for buyers from outside of the EU. Feel free to contact us if you have any questions regarding the acquisition of real estate. We maintain good contacts with Maltese estate agencies.
