Increase in Property Investment to Continue in 2015

2014 was yet again another record year for RE/MAX Malta. The company closed the year with circa 28% increase in promise of sales, the most significant increase in transactions that we have experienced in the last five years.

This can be attributed to a number of reasons including but not limited to the first-time buyer scheme, further gain in market share as well as an increase in growth of sales associates operating within the RE/MAX Malta team, not to mention the continuous effort in training of their associates. RE/MAX Malta boasts of being the largest real estate company in Malta with over 17 offices open and over 200 sales and letting associates.

Property demand in 2014

According to reports in 2014, the demand for people buying real estate in Malta hit a high. Over 3000 buyers out of the estimated 10,500 benefited from the first-time buyer scheme, whereas there was a significant increase in up-market sales to foreigners taking advantage of the Global Residence Programme (Non-EU Citizens), The Residence Programme (EU Citizens) and the Citizenship by Investment Schemes. The popularity of the first-time buyer’s scheme, which exempts those that are eligible from stamp duty on their first €150,000 spent, prompted the authorities to extend the scheme till the end of June 2015.

Continuous improvement in 2015

Regardless of the distraction of the festive season, January 2015 started where 2014 left off, with consistent growth in property sales.  The outlook for 2015 is that this trend will carry on throughout the year.

The continuous effort made by the Government of Malta to market the country as an Island of excellence has further enhanced the chances of Malta having another record year in real estate and the economy. On the 17th of January, ratings agency Standards and Poor’s affirmed Malta’s rating at BBB+/A-2′ with a stable outlook. 

The foreign investment of €320 million in Enemalta (Malta’s Energy company), 25% increase in iGaming Licenses, and other major enhancements to the general infrastructure of Malta in 2014 are indications that 2015 will have sustained growth throughout the new calendar year.

Foreign Investment

The increase in investment in the country had a multiple effect on the economy, in particular, to the local real estate industry but also on those that service the industry. The iGaming industry, for example, employs over 10,000 people, of which an estimated 4,000 are foreigners that require accommodation in the form of apartments for rent. An increase of 25% in iGaming licenses will definitely follow an increase in foreigners requiring finding a place to live. The development of the new power plant, which has been tied into the investment of Enemalta, will also create an increase in the demand for buying a rental investment in Malta to cater for the foreign staff, engineers and executives that will most definitely be working together with the locals

It is envisaged that besides the organic growth, growth created by various schemes to increase foreign property investment, there will also be a considerable growth in property sales in 2015 directly attributed from the rental investment market in order to cater for that demand.

Why invest with RE/MAX?

If you are looking to buy real estate as an investment in Malta or Gozo, it is important that you choose your estate agent wisely. A qualified estate agent that is specialised in your specific type of property investment is pertinent to buying the property that suits your needs and avoiding making the wrong investment. Furthermore, due to our experience and resources choosing RE/MAX as your property agent can help to simplify the buying procedure, and this also implies to second-time buyers. Read more about buying to let investments in Malta.