Rental investments in Malta have been on an upward trend. Learn more about the key highlights of Malta’s rental investment market.
Throughout the past couple of years, Malta’s rental investment market has been experiencing an upwards trend. Statistics show that during the last three consecutive years people buying real estate as an investment increased from 15% – 20% Year-on-Year.
The truth is that supply is not keeping up with the major demand from an influx of foreign investors relocating and purchasing a rental investment due to company expansion and the relocation of new foreign companies.
Buying to let investments in Malta are projected to increase in demand. This increase in demand will continue to organically grow whilst the BREXIT aftermath and initiatives laid down by the Government will pay huge dividends to the Maltese Economy.
A forecasted 300,000 to 400,000 square metres of office space in Malta is presently on plan to be developed over the next five to ten years to bridge the gap between demand and availability for first class office space. This means that the infrastructure in Malta will be able to accommodate from 30,000 to 40,000 new employees over the next decade, of which forty percent will be expatriates.
In other words, over 18,000 new jobs for Maltese Nationals may be created over the next ten years whereas the demand for residential rental housing for expatriates will continue to increase substantially.
We must acknowledge that a hike in rental property prices may place an amount of pressure on the Maltese Government to further increase property subsidies for low income earners that may not afford to rent a property in Malta but this may not be such a bad problem to have if everyone looks at the bigger picture.
In fact, the Government of Malta has already issued an initiative for income earners that earn less than the aggregate income €23,000 per annum where a maximum benefit is being offered of €2,000 subsidy. Explore the types of property investments available on the local market.
If we continue to look at the bigger picture and work together to resolve the social issue that may affect a small percentage of the population, a rental investment is still a valuable asset that may garner anything from 3.5% rental yield.
If you are interested in discussing rental investment opportunities with us, contact one of the branches today and we will be able to guide you in the best way possible to buy property in Malta as a rental property investment. Read more about how to maximise the rental income from your investment.