When planning to relocate to Malta, there are certain factors which residents take into consideration. Malta’s warm climate and its strategic location combined with its friendly locals, the low crime rate, world heritage protected sites, its advanced health care and its authentic Mediterranean cuisine are all part of the island’s lifestyle benefits.
The Maltese islands also have much more to offer, however, such benefits are sometimes overlooked. Some of which include, its real estate market, its citizenship & residency programmes, its investment opportunities and its steady economy.
Investing in Malta
Malta’s accession to the European Union and its strategic location on the crossroads between North Africa, Europe and the Middle East all position the small island as a hub for international investment. With direct flights to North Africa and Europe, Malta attracted foreign direct investment (FDI) at €169.8 billion in 2017. This is mainly due to Malta’s strategic plan to develop industries such as Fintech, tourism, ICT and iGaming. During the last quarter of 2018, Malta has also implemented a specialised legal regime for crypto currencies and Blockchain, positioning the island as a port of call with regards to Fintech setups.
Citizenship & Residency Programmes
Individuals could also opt to attain citizenship or residency through the programmes available on the basis of an investment within the Maltese economy. By investing in these programmes, one is also benefitting from the right to stay, reside and settle in Malta as well as visa-free travel within the Schengen Area.
Real Estate Market
The interest in these programmes as well as the growth in FDI, has resulted in an increase in real estate deals within Malta. Malta’s real estate market has been in a constant boom for the last 30 years. This has been reflected in the number of investments both by locals and foreigners which relocate here for family, commercial, retirement or work motives.
As reported by the Malta Central Bank and by Knight Frank, residential property prices in Malta have witnessed a 17% year-on-year increase in quarter two of 2018. This has placed Malta for the first time in the lead spots in ranking lists, ahead of Hong Kong. This surge is mainly linked to Malta’s 6.6% GDP growth during 2017, as well as the increasing demands and supply restraints. Prices of properties in strategic locations such as Sliema, Valletta and Gzira are always increasing and rental properties are becoming tougher to find.
Owing to the small size of the island, there is no fine line between those areas preferred by foreign investors and those desired by locals. In turn, this has eliminated volatility in property deals, with various properties preserving and increasing their price exponentially. This has also withstood the financial crisis during 2008, where, unlike other countries which experienced drastic price drops, Malta’s property market has preserved its value and remained stable.
Malta’s rental market is also categorised as one of a kind. Maltese society essentially supports a mentality of investment in property rather than rental for personal use. As a result, first-rate properties for rent are tough to find. With a high increase of foreign human capital, rental properties are very attractive, thus opening opportunities on ‘buy-to-let’ investment options.
This Mediterranean island characterised by a fusion of people and cultures, has undoubtedly established the appropriate economic environment to satisfy the demands of the international investment market. As a steady real estate platform and with flourishing industries such as yachting, financial service, pharma, tourism, shipping and gaming, Malta has placed itself as an attractive environment for real estate investments of any type.
