Merle of MaltaLifestyle looks at 2023 performance and the outlook for 2024.
Let’s look at 2023 first.
In 2023, Malta’s property market witnessed sustained price growth. According to globalpropertyguide.com, the residential property price index soared by 10,51% year-on-year in Q1 and 8.3% up to Q2 2023 (Q4 in 2022 reported a slow 2,71% growth). This is the second-strongest growth since Q1 2019. An uptick in demand and an attractive investment market contributed to the growth.
On the back of a slight dip in residential property transactions in the first three quarters of 2023, residential construction continued. The government’s cost-saving measures in the 2023 budget, including stamp duty waivers for first-time buyers and VAT refunds on restoration works, stimulated the property market.
2024 outlook
The outlook remains positive. Local investors are robust. International buyers and renters continue to be attracted to the favourable tax jurisdiction, low running costs, safe environment – as well as 300 days of sunshine and English-speaking community. PLUS+ you can own property in Malta irrespective of residency – attractive for the buy-to-let market.
Government measures are expected to sustain demand and influence prices due to a short supply. Key factors influencing the market include:
- Low Interest Rates: Attractive interest rates make homeownership dreams a reality.
- Economy: Malta produced one of the EU’s strongest economic growths at 4%, driving demand for investment in this Mediterranean gem.
- Investment: Malta is in the investment spotlight due to a stable economy, low taxes, and quality of life, which positively impacts the property market.
- Incentives: Tax incentives and grants introduced in 2021/22 boosting property investment opportunities have been extended for 2024.
- Construction Costs: Malta may not escape the pressure on material costs and this may apply upward pressure on property prices.
- Supply: Limited land for development may restrict the supply of new homes, potentially driving up prices.
- Sustainability Focus: The government’s emphasis on sustainability is fostering demand for energy-efficient homes.
- Luxury Property: Growing interest in luxury properties, especially from those seeking a safe and secure environment, may drive up prices.
- Rental Market: This market will continue to thrive and offer investors a great return.
Merle Whale summaries: Malta’s property market is set to be a dynamic one with a variety of options and benefits for South Africans in 2024. Investors who can adapt to an evolving landscape may find exciting opportunities.
Give us a call if you’re in search of properties that offer top returns. Contact MaltaLifestyle.com at email malta@maltalifestyle.com or WhatsApp Merle Whale on 082 574 4661.