A guide to buying an apartment in Malta
The investment Registration scheme in Malta that allowed residents with assets and investments overseas to bring them back to Malta set off a low-interest rate trend amongst money lenders. These same people who are very rich and own yachts in Malta. The Maltese residents were given the chance between 2001 and 2015 to bring their assets to Malta and make them legal, no questions asked. Naturally, most Maltese residents took advantage of this chance and bring all their investments back home. Most of them took their money and invested it in the real estate business in Malta.
There is also the fact that the height requirements in some areas in Malta were abolished. Combined, these factors caused a boom in the property market in Malta. Because more and more people were looking to invest in land and build properties, the buying prices have continued to increase in Malta rather steadily.
While the property market in Malta is growing slowly, it is performing better than the property market in most European countries. As of 2015, Malta was considered to have the second highest economic growth in the eurozone.
The current economic trends have made it such that property prices today in Malta are higher than they have ever been. The property prices in Malta are also higher than those in most countries in the world. The rent per month of a one bedroom apartment is an average of €646.48 in the city center. Outside the city center, the price for a one bedroom apartment is approximately €492.39.while a three bedrooms apartment is €1,136.85 in the city center, it is €791.91 outside the city center.
Naturally, it is more expensive to live in the city center. If you are a business person, living in the city center means that your costs of transportation to and from work are reduced. You will also have access to some of the best schools and other amenities. When such factors are put into consideration, you find that you will be getting more for less. Outside the city center, the transportation costs per month may surpass the costs of living in the city especially for people who travel to the city each day.
If you are considering buying an apartment either for yourself or for rent, you want to ensure you know the average price of apartments for sale in Malta. The price per square meter of an apartment in the city center is €2448.33 while buying the same size apartment outside the city is €1,604.9. If you are considering getting an apartment and then renting it out, you also need to know where you will be buying the apartment. For instance, buying an apartment in the city may be expensive. However, you will end up getting your money back in one year given that the renting prices in the city are also high. It is also important to note that the property trends in Malta dictate that these prices will only increase.
The prices also depend on the real estate agent. For example, there are some real estate agents in Malta like Karkanja.com and ta dernis properties who do not charge a commission because they build the property themselves. In other words, they are both the real estate agent and the developer. If you do a google search for property developers in Malta, you will probably find these type of companies and save 5% which you can use to improve you home, for renovations etc.
You, therefore, could be looking at a higher price by the last quarter of the year or the beginning of the next year.