Malta’s real estate market has experienced significant growth over the past decade, with increased demand for both commercial and residential properties. The country’s booming economy and attractive tax incentives have contributed to the expansion of the real estate market. The following is an overview of the market trends in Malta over the past 10 years.
From 2011 to 2014, the Maltese real estate market experienced a period of decline due to the global economic recession. However, this trend reversed in 2015, with the market starting to recover and show steady growth. Since then, the real estate market in Malta has experienced significant expansion, driven by a number of factors.
One of the main drivers of growth has been the country’s citizenship by investment program, which allows foreign nationals to obtain Maltese citizenship in exchange for a significant investment in the country. This program has attracted high-net-worth individuals to invest in the country, leading to a surge in demand for luxury properties.
Another factor contributing to the growth of the real estate market in Malta is the country’s strong economy. Malta has experienced consistent economic growth over the past decade, with GDP growth averaging around 5% per year. This has led to increased job opportunities, higher incomes, and greater demand for housing.
Additionally, the Maltese government has implemented a number of policies to encourage foreign investment in the country. These policies include tax incentives for property developers and investors, as well as the establishment of special economic zones that offer favorable tax rates to businesses. These policies have contributed to a positive investment climate in the country, attracting foreign investors to the real estate market.
Over the past 10 years, the Maltese real estate market has shown steady growth in both commercial and residential properties. Property prices have risen significantly, particularly in the luxury segment of the market. According to data from the Central Bank of Malta, residential property prices increased by around 25% from 2015 to 2019.
However, this growth has also led to concerns about affordability, particularly for first-time buyers and low-income earners. The Maltese government has implemented a number of policies to address this issue, including a first-time buyer scheme that provides financial assistance to individuals looking to purchase their first home.
Overall, the real estate market in Malta has experienced significant growth over the past decade, driven by a combination of factors including strong economic growth, favorable government policies, and high demand from foreign investors. While this growth has led to concerns about affordability, the government’s efforts to address this issue indicate a commitment to maintaining a healthy and sustainable real estate market in the country.