Did you know that according to recent study the small island of Malta, a country in the EU located in the Mediterranean sea, has beaten Hong Kong to become the world’s fastest-growing property market?
Yes, that’s right, a country with less than 500k residents is managing to achieve miracles when it comes to rising property prices. Surely that can’t be just an accident and there are sound reasons why property in Malta is becoming so expensive.
The island of Malta has long been a favorite among British expats looking to retire in a place with excellent climate, easy going culture and affordable housing. Every since it’s Independence in 1964 the country has been attracting not only sun seeking tourists, but also people who are trying to escape the hustle and bustle of other European countries.
In the last 10 years, however, it’s not the British who are driving the property prices up. The booming economy has played a significant role in attracting people from all over Europe who are looking for a new and better life.
The government of Malta made the island a very attractive place for gaming companies to do business which lead to many such companies relocation to this hidden Mediterranean gem, bringing with them a lot of young talent. The salaries in the gaming sector are a lot higher than the average salaries in Malta which lead to increase in rent prices, especially for properties located in the Sliema, St Julians, Msida and Gzira areas.
Another wave of workers started arriving on the island in the last 5 years mostly from Eastern Europe. Most of them come to Malta purely for economical reasons and work in the hospitality and construction sectors. This has additionally increased the demand for properties for rent and sale. Many new developments have started to appear all around Malta and most properties are being sold even before construction is completed.
In recent months, Malta is become the blockchain capital of the world. Many young entrepreneurs, freelancers and digital nomads have been attracted by the tens of start-ups in the hope of being part of this new and very exciting economic sector. The government has started even pushing policies to issue ‘start-up visas’, something which countries like Portugal have already done with great success.
Other incentive programs have been introduced in recent years too. People under the age of twenty five can get a huge tax break up to 5000 Euros when purchasing their first residential property. Also, people over the age of 40, who haven’t been able to buy a home yet will receive help from the government too.
In summery, Malta is a unique ecosystem and Government measures have really worked to boost the economy which has played a major role in driving the property prices on the island to their highest levels ever. As long as these trends continue, there isn’t really any reasons for the market conditions to change and for prices to start going down. Yes, it is true that properties for rent in Malta are becoming pretty much unaffordable for local people, but it is a question of supply and demand, and currently there are plenty of well of people willing to pay the premium.