The small island of Malta, one of Mediterranean’s best kept secrets, has experience unprecedented economic development in the last decades. Even when Europe and the whole world were experience the effects of the crisis in 2008, things in Malta slowed down a bit, but the situation was never terrible.
One of the main factors for economic success has been the booming property market, so it comes as no surprise that many foreign investors are looking for opportunities. The prices keep going up and up and even when many people were thinking that it was too late to buy as the ‘bubble must burst soon’, demand increased and the value of properties doubled.
So at this point, future investors aren’t even thinking “should I” or “shouldn’t I”, but are rather considering which type of property will give them a better return on investment – an apartment or a house. There are a lot more apartments than houses for sale in Malta, and it has to be said that both have their pros and cons.
Apartments offer a lot more choices. There are cheap apartments under 120k in some areas, ranging from maisonettes to penthouses. The most sought after areas like Sliema and St Julians are so developed that there are only a few houses left. Every new building is a tall block of flats. Yes, that creates problems with parking and overpopulation, but many are ready make such sacrifices, considering the open sea views you get from the higher floors.
Houses are notoriously difficult to maintain. There is always something wrong with the roof, the pool needs cleaning or the garden needs work. Still, you can’t been the feeling of “my home is my castle” and the privacy of your own yard.
Most foreign investors don’t think about heating when choosing a property in Malta. Of course, the climate is quite warm, but the winter months can be quite nasty. Most houses and apartment buildings don’t have any kind of isolation or central heating. And let’s not even mention the humidity and the mold. You don’t have to be a genius to figure out that flats will be a lot easier to keep warm than houses.
May be the most important factor when purchasing a property in Malta is the rental income. Houses command a lot higher prices on average, but finding tenants is a bit more difficult. Apartments are a lot easier to rent because of the higher demand. The reality is that most expats and economic immigrants who come to the island are searching for affordable accommodation so for them a nice flat is the preferred option. If on the other hand you want to rent to people who participate in the IIP scheme, you are better off investing in a high end properties.
Check out the latest properties for sale in Malta today and see the current prices plus investment opportunites.