News

Malta bene! House prices fall even further

admin — 05/09/2011 11:36:00

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Photo credit: wparadiso

House prices in Malta fell even further this year, according to the country’s latest figures, improving investors’ chances of picking up a property bargain.

The report, published by The Central Bank of Malta, found that house prices fell by 2.6 per cent in the first quarter of 2011. The drop in the residential property price index was the second quarterly dip in a row, making Malta increasingly more attractive for holiday home buyers.

The fall in property prices is mainly attributed to the reduced value of terraced housing, adds OPP, which has decreased by 6.1 per cent year-on-year. But other properties have become more affordable too, with townhouses and villas also falling by 12.8 per cent from 2010.

Prices rose, however, for apartments over the 12 month period. Flats, which make up almost 60 per cent of the Maltese properties surveyed, increased in value by 1 per cent.

The Bank’s report also revealed that there are now fewer houses in Malta for sale. While the number of advertised homes decreased by nearly 10 per cent, the Malta Environment and Planning Authority issued 25 per cent more building permits for the construction of new property, the majority of which are apartments.

As house prices plummet and more flats are built, Malta is more appealing than ever for overseas property buyers.

Interested in property in Malta?

Browse our listings of houses, villas, apartments and other overseas property:

http://malta.themovechannel.com/property/all/

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Brad and Angelina renting $11 million mansion in Malta

Sarah Kendell — 16/06/2011 10:54:00

They've already put the French Riviera on the map with their £35 million chateau purchase in Brignoles, and now the European jetsetting power couple are set to do the same with the Malta property market - they've rented an $11 million castle in the village of Qrendi for the summer.

The 18th century Guarena Palace, located in the south-west of Malta, was once a fortress used to protect local residents from attacks by Arab invaders and pirates. It is named after a member of the Knights of the Order of St John, Bailif Fra Pietro Francesco Rovero de la Guarena, who built the castle in 1750.

The pair are in Malta for the filming of Pitt's latest movie, zombie action epic 'World War Z', which will showcase the mysterious, ancient beauty of the island nation, particularly the city of Valetta and the three fortified towns of Conspicua, Vittoriosa and Senglea, where the majority of filming is taking place. The film, which begins shooting in July and is being produced by Pitt's own company, is also expected to inject a huge €30 million into the local economy.

Despite only jetting in earlier this week, the pair seem to have already done a decent job of showcasing some of Malta's many attractions for visiting families - after Pitt did some location scouting in Valetta, he and Jolie took their six children to the local Fun & Splash water park,then enjoyed a private dinner at famed local trattoria Da Pippo.

Interested in property in Malta?
Browse our listings of apartments, houses and other property for sale in Malta here: http://malta.themovechannel.com/property/all/

Malta to reintroduce residents' scheme for homebuyers

Sarah Kendell — 06/04/2011 10:32:00

The Maltese government is currently in negotiations to reintroduce its previous Permanent Residents Scheme, whereby property investors can gain EU residency status from purchasing homes on the island nation.

After a few teething problems when the scheme was first introduced last year, such as foreign property owners using their new residency rights to try and claim healthcare and social security benefits, the government is expected to announced a rejigged scheme with tighter controls in the current weeks. Investors purchasing under the permanent residency program injected over €35 million into the Maltese economy last year.

The scheme added to a highly prosperous year in the Maltese property market, which despite stalling statistics amongst its neighbours, grew significantly in 2010. Home values rose 1.5% and 0.5% in Q2 and Q3 respectively, with a healthy 7.1% year-on-year rise in prices for townhouses and detached homes. It was somewhat rapidly revoked at the end of last year, angering agents and developers who have been calling on the government for it to be reintroduced. "Malta's reputation as a serious financial services centre is at risk, especially in a situation where the goalposts can be changed or removed without any notice", Ian Casolani, chairman of the real estate sector of Malta's Chamber of Commerce, told the Malta Times.

But with the reintroduction of permanent residency rights for buyers (presumably minus access to public funds), Malta's housing industry should continue to grow in 2011. Increased rental demand is equally making it an attractive destination for buy to let investors - according to UK-based vacation rental site Holiday Lettings, enquiries for properties in Malta have shown the biggest increase so far this year out of any of the destinations the site services. "Malta benefits from a similar tradition with British holidaymakers to Spain", said the site's spokesperson Kate Stinchcombe-Gillies. "As more and more rental properties come to market on the archipelago, there seems to be an almost nostalgic pull to the islands that are also renowned for affordable living standards, hot summers, warm shoulder seasons and great diving."

Interested in property in Malta?
Browse our listings of apartments, houses and other properties for sale in Malta here: http://malta.themovechannel.com/property/all/

Spain, Malta are summer's buy to let winners

Sarah Kendell — 22/03/2011 10:55:00

Spring is finally in the air this week here in the chilly old British isles, and it seems UK holidaymakers have summer on their minds, if the latest data from vacation rental website Holiday Lettings is anything to go by. Surprisingly, despite growing media reports of an 'income squeeze' due to increasing taxes and inflation, the portal has recorded a 20% year on year increase in holiday home enquiries so far in 2011, with Spain's Balearic and Canary Islands and the up and coming island nation of Malta the big winners amongst sunseekers.

This is good news for buy to let investors with properties in Spain's outlying islands, who have no doubt been panicking over the last year with the market collapse on the mainland and virtually no chance of selling their home for a profit. But luckily industry predictions on the resilience of Spain as a holiday destination prompting a recovery in market demand appear to have come true - the Balearic Islands have had the single largest enquiry rate of any destination this year, whilst the Canaries were also popular earlier in the year.

Spokesperson for Holiday Lettings Kate Stinchcombe-Gillies said the islands represented a reliable, value-for-money holiday option for cash-strapped Brits, particularly given the savings they could achieve on holiday rentals versus hotel stays. "The recognised saving when renting a cottage is hitting home with consumers in tough economic times", she said. "Spain's reputation for offering value for money and its longstanding place in the hearts of British holidaymakers are likely to be contributing to its popularity so far this year."

Those who may have purchased a buy to let property in Malta in recent years to take advantage of low costs and the previous residence scheme for homeowners, will also be pleased to know demand for holiday property on the Mediterranean island has skyrocketed. With a 29% year on year increase in enquiries, Malta is the biggest growth destination on the site - Stinchcombe-Gillies attributes this to its equally mild climate and great natural attractions. "Malta benefits from a similar tradition with British holidaymakers to Spain", she said. "As more and more rental properties come to market on the archipelago, there seems to be an almost nostalgic pull to the islands that are also renowned for affordable living standards, hot summers, warm shoulder seasons and great diving."

The potential of Portsmouth

Catherine Deshayes — 09/06/2009 13:08:00

Don't you just love summer holidays - that cocktail of sun, sand and sea is almost impossible to beat - lazy mornings, eating out, sunbathing on the beach in stunning....er...Portsmouth - yes, you read right - tourism bosses are coming over all ‘Apprentice' on us and attempting to rebrand Portsmouth as ‘the new Malta...'

Now, between you and me, I can't think of a single similarity between the sun-drenched Mediterranean island of Malta and the unfashionable seaside city of Portsmouth - except, of course, they are both coastal.

But the sea in the two locations couldn't be more different - one is blue and warm, the other is grey and, er, not. I'll leave it to you to work out which is which.

Still, that hasn't stopped tourism bods from Southern Railways following in the steps of Sir Alan's apprentices and attempting to transform a faded seaside town into a holiday hotspot - in this case, Portsmouth rather than Margate.

They are launching one of the most ambitious marketing campaigns ever and attempting to push Portsmouth as the ‘new Malta.'

Southern Railways run services between central London and Portsmouth and feel us Londoners are missing a trick by not making the pilgrimage to the south coast.

Southern Railways' advertising campaign follows the unveiling last month of a French-themed online video comparing Blackpool, a traditional haven for stag and hen weekends, to a sophisticated European town.

Trouble is, the beach at Portsmouth isn't exactly the holiday paradise I'd want from my summer break -Southsea beach boasts shingle and soggy sandwiches and most locals wouldn't dream of swimming in the sea. Plus our unreliable British weather could easily put paid to any sunbathing - the city's average summer temperature is 20.7C, compared to 30.7C in Malta.

Portsmouth also has an unfortunate reputation of being a transient town filled with sailors looking for a good time. Crime rates are high and fighting is rife. But, it does have a rich naval history and an FA Cup winning footie team.

In terms of tourist attractions, last year the Heritage Lottery Fund awarded £21 million to Portsmouth's Mary Rose Museum and the 170 metre Spinnaker Tower affords great views over historical Portsmouth Harbour and the Solent.

View Deck 1 of the tower boasts Europe's largest glass floor, where visitors of all ages can ‘walk on air.' View Deck 2 has self-contained multimedia ‘Time Telescope' stations showing the history of the harbour and View Deck 3 - The Crow's Nest - is open to the elements, enabling visitors to feel the wind in their hair.

Sadly, that's still not enough to tempt me to cancel my flights to Malta, but, with more people than ever taking ‘staycations' this year, the Portsmouth buzz could prove more enticing than one would think.

Portsmouth posters have been put up in railway and Tube stations across London in a bid to encourage visitors to sample the great British summer holiday.

Picture of Spinnaker Tower on Portsmouth waterfront by david.nikonvscanon

Economic growth forecast for Malta property market

Ivan Radford — 16/11/2011 10:23:00

The latest medium term economic forecast published by the European Commission paints an optimistic picture for the island of Malta's economy and a healthy climate for a property market that remains buoyant.

Though not immune from the difficulties affecting the rest of the EU, Malta is relatively well placed compared to some of its larger neighbours, with continuing growth predicted, inflation at just over 2% and unemployment decreasing.

According to the European Commission's report, Malta's GDP is expected to grow by 1.3 per cent next year and 2 per cent in 2013. Unemployment is forecast to fall by 0.1 per cent from 2010 to 2012, and by a further 0.1 per cent in the following year.

Ray Woods, the head of UK based Malta Buy Property, comments: "The figures are very encouraging in the light of the current turmoil in the EU. Clarification of special taxation treatment for high net worth individuals by the Government has also removed a degree of uncertainty and offers an attractive regime for residency linked to Malta's excellent geographical links."

"It does not mean that everything in the garden is rosy," Woods admits, but highlights tourism as growth as an important positive factor. "The Malta Government has still to sort out some big issues with Air Malta the national carrier which is losing money... However, the success of low cost carriers like Ryanair and Easyjet has boosted both the tourism and property markets."

Woods concludes: "The economic fundamentals look pretty sound and provide an encouraging backdrop for the property market. Development land is in short supply and the population is increasing. Combine this with low unemployment rates, ready availability of mortgage finance and increasing interest from overseas - and the prospects for property sales and values is good."

Exploring new climes

admin — 22/07/2011 07:09:00

The number of SA investors buying a pied-€-terre in Malta has apparently surged over the past 18 months, with the island’s investor-friendly tax regime, reasonable cost of living and relatively affordable property prices seen as key attractions. The fact that Malta, a British colony until 1963, is one of the few EU countries where English is an official language — alongside Maltese — is another draw card.

While some South Africans are buying property primarily to use as holiday homes, others are looking to Malta as a potential emigration and retirement destination.

Malta, which consists of three islands, Malta, Gozo and Comino, is already home to a sizeable expat community from SA, including former executives like Ernie Joubert, once CEO of hospitality group Peermont Global. The semiretired Joubert and his wife Leigh relocated to Malta three years ago.

Linda Erasmus, CEO of estate agents Fine & Country SA, says Malta is coming up more often on SA investor’s radar screens as more recognise the country as a centrally located and politically stable gateway into Europe.

Source: FinancialMail.co.za

Development of property in Malta needs to dramatically fall

admin — 13/07/2011 07:08:00

The oversupply of property in Malta is causing grave problems for the country’s property market and the government should step in immediately to control the development of new properties. That’s the view of a leading Maltese Property expert who believes that the relaxing of planning regulations in Malta over recent years has caused huge problems for the country’s property market.

Huge supply of property in Malta pushing prices down

A recent Central Bank Financial Stability Report has acknowledged the weak state of the Malta property market at a time when more and more properties are coming up for sale despite low demand.

The report states: “The slow-down in the property market… raises credit risk associated with these projects. In particular, additional supply of housing units may extend the period of lull in property prices.”

Martin Scicluna, writing in Malta Independent, believes that the oversupply of property in Malta is the leading cause for the current ‘parlous’ state of the property market.

Source: HomesGoFast.com

Malta's housing market stabilizes

admin — 29/03/2011 16:47:00

After two unhappy years, house prices are stabilizing in Malta. Malta’s overall house price index actually dropped by 1.02% over the year to Q3 2010, when adjusted for inflation, but the nominal index rose 1.53%.

All the same, 2010 has been rough for some property owners in Malta:

* Terraced houses fell in value by 6.65% over the year to Q3 2010 (-8.99% in real terms).

* Maisonettes rose 2.18% in nominal terms during the year to Q3 2010, but their prices actually fell by 0.38% when adjusted for inflation.

* Apartments saw a 3.39% increase over the year to Q3 2010 (0.79% in real terms).

* “Other houses” unclassified as either apartments, maisonettes, or terraced houses were the star performers, with a 7.10% rise over the year to Q3 2010 (4.41% in real terms).

Malta’s housing situation looks a little troubling from the investor’s perspective – there’s been overbuilding, there are a lot of empty dwellings, and gross rental yields are low.

Source: Global Property Guide

Malta property prices on the rise

admin — 01/03/2011 11:48:00

Advertised property prices rose by 1.5% in the third quarter of 2010, on top of an increase of 0.5% during the previous quarter, the Central Bank reported today. Reporting in the Quarterly Review on its ongoing survey of advertised prices, the bank said that disaggregated results showed that the overall increase was primarily due to higher asking prices for apartments and, to a lesser extent, for maisonettes and properties in the “other” category.

Prices of apartments – which made up three-fifths of properties surveyed – rose by 3.4% on a year earlier, contributing around 0.8 percentage points to overall property price inflation. Prices in the “other” category, which consists of townhouses, houses of character and villas, went up by an annual 7.1% . This was in line with the previous quarter’s increase and contributed just above half a percentage point to the overall rise in property prices.

Meanwhile, prices of maisonettes gained 2.2%, accounting for around 0.3 percentage points of the overall increase. On the other hand, asking prices for terraced houses dropped by 6.7%, thus lowering overall property price inflation by almost half a percentage point.

Source: Times of Malta

1 in 6 European homes are overcrowded

admin — 24/02/2011 12:37:00

One in six Europeans is forced to live in an overcrowded home, ranging from one percent of the population in Cyprus to 58 percent in Latvia, according to the EU's statistics agency, Eurostat.

The report, published on Wednesday (23 February) and based on 2009 data, also shows a considerable variation between member states regarding problems of damp, darkness or the availability of sanitary equipment in European homes.

Many Europeans also said they suffered from a leaking roof (Photo: psyberartist) * Print * Comment article "Housing deprivation is one of the most extreme examples of poverty and social exclusion in society today," declares the document. "Although access to affordable accommodation is a fundamental need and right, guaranteeing this right still represents a significant challenge in several member states."

Eurostat defines a person as living in an overcrowded home if the building does not contain one room per individual. One room per couple or two same-sex children is also considered acceptable.

At the lower end of the scale in 2009 were Cyprus with one percent of the population living in overcrowded dwellings, two percent in the Netherlands, three percent in Spain and four percent in Ireland, Belgium and Malta. At the other end, 58 percent of Latvian citizens were estimated to suffer from overcrowded homes, 55 percent in Romania and Hungary, 49 percent in Poland and Lithuania and 47 percent in Bulgaria, all former Communist countries which joined the EU in 2004 or later.

Source: EU Observer

Malta has best climate in the world

Sarah Kendell — 21/01/2011 11:46:00

Two countries have tied for first place with the best climate on earth in this year's Quality of Life Index, published last week in International Living magazine.

Climate is one of nine categories that go in to calculating the countries with the best quality of life in the annual International Living index. Sharing top scores for climate in the 2011 index are Malta and Zimbabwe .

Of the two, Malta is our favorite, says International Living magazine Editor Eoin Bassett. "But with 5.2 hours of sunshine a day, a stable government and economy, Malta is a very strong draw for expats. And it's English-speaking."

Anchored almost in the center of the Mediterranean Sea, 60 miles from the Italian island of Sicily , frost and snow are mostly unknown in Malta, and the temperature nudges 70 degrees Fahrenheit even in November.

Malta property market may suffer from Residents Scheme suspension

Sarah Kendell — 20/01/2011 11:13:00

A number of applications originating from Iran are believed to be the reason behind the Maltese government's decision to unilaterally suspend the Residents Scheme for non-EU nationals indefinitely,

"Government should have assessed the economic implications before suspending the scheme. Various estate agents have been actively promoting Malta abroad, especially in South Africa and China, and it is understood that this drive was leaving the desired results. This drive was given the blessing of government through Malta Enterprise.

"Even worse is the negative reputation that Malta will receive by those non-EU nationals that had their application accepted recently and paid the minimum tax of EUR4,192. This is now being refunded much to their disappointment for having their application accepted only to be rejected a few days later.

"If it is true that concern was raised over doubtful applications, government could have investigated on a case-by-case basis rather than suspend all applications including bona-fide potential foreign residents. This decision seems to have been taken by government rather than the European Commission and thus more sensitivity should have been shown especially when Portugal just introduced a Residence Scheme to boost its property industry."

Malta leads the way in new EU economies

Sarah Kendell — 12/01/2011 11:38:00

At just 6.3 per cent, Malta 's unemployment rate is the fourth lowest in the EU, according to figures published by Eurostat on Friday.

Only the Netherlands with 4.4 per cent, Luxembourg with 4.8 per cent and Austria with 5.1 per cent have a lower rate.

The average euro area (EA16) seasonally-adjusted unemployment rate was 10.1 per cent in November, unchanged from October. It was 9.9 per cent in November 2009. The EU27 average unemployment rate was 9.6 per cent in November, also unchanged from October, compared with 9.4 per cent in November 2009.

Eurostat estimates that 23,248 million men and women in the EU27, of whom 15,924 million were in the euro area, were unemployed in November. Compared with October, the number of people unemployed fell by 35,000 in the EU27 and by 39,000 in the euro area. Compared with November 2009, unemployment rose by 606 000 in the EU27 and by 347,000 in the euro area.

For more on Malta investment opportunities, click here

Malta price growth slowing for first time in 2 years

Catherine Deshayes — 08/12/2010 20:16:00

Malta property price growth is finally slowing, having appreciated since March last year, according to the latest figures released by the Central Bank of Malta...

The Bank's Quarterly Review reveals that the advertised Malta property prices slowed from 4.5 per cent in the first quarter of this year to 0.5 per cent in the second quarter.

The greatest rise in Malta property prices was recorded in the apartments sector, with average Malta apartment prices increasing by 3.6 per cent in the second quarter of 2010, compared to the corresponding quarter in 2009.

However, there was a 7.7 per cent fall in the median price of maisonettes in Malta, suggesting that greater bargains are achievable for those people looking to buy this sort of housing type in the country.

Positively, the bank said that the supply of new homes in Malta coming onto the market had fallen in the second quarter, with the number of residential properties advertised for sale declining by 7.4% year-on-year. This is good news for the Malta property market and its future prospects for capital growth given that parts of the country has been plagued with an oversupply of homes in recent years.

The volume of building permits issued by the Malta Environment and Planning Authority fell by 3.6 per cent year-on-year in the second quarter, suggesting that new homes supply will fall further in the short-term.

Source: www.aplaceinthesun.com

UK exiles see Malta as less taxing

Catherine Deshayes — 31/03/2010 11:28:00

The UK is likely to see a flurry of exiles heading for sunnier and less taxing shores like Malta, predicts one property specialist - who says that this small English speaking Mediterranean island offers a warm welcome only 3 hours away from the UK...

Recent changes in UK taxation have seen a new tax rate of 50% on incomes over £150,000 and the abolition of tax allowances on incomes of over £100,000. In addition, the freezing of tax allowances will mean that thousands more will be paying marginal tax rates of 40% over the next few years. On top of all that, there have been increases in Council (property) tax and in national insurance contributions.

So how does this compare with places like Malta?

There, income tax is a flat 15% and there is no property tax - as local councils are funded by block grants from the Government.

If you want to buy a property, it will cost you around 6.5% of its value which compares well with many other countries.

Property is not cheap but local mortgage finance is readily available at favourable terms - and the investment outlook is strong, with long term demand exceeding supply - bolstered by an exponential growth in low cost airlines, not only from the UK but from across Europe and the rest of the World..

There are no death duties in Malta.

Many Companies have relocated to Malta - which positively encourages inward investment. The labour force is well educated, highly technically literate and English is a joint first language - so setting up is a great deal easier than elsewhere.

As a member of the euro zone, Malta enjoys currency stability and access to many adjoining markets such as Italy, France, Germany and Spain.

Ray Woods from http://www.maltabuyproperty.co.uk/ says,

"For EU citizens such as those from the UK, permanent residency in Malta is a formality provided that you can demonstrate that you are self sufficient. For those on higher incomes in the UK, notably owner managers, it is a financial no brainer, particularly since the latest wave of tax and other increases.

Increasingly businesses are not geographically tied, driven by the growth of the internet and high quality low costs telecommunications. High marginal tax rates in some countries like the UK therefore work in favour of places like Malta where labour and employee related costs are typically much lower than.

Buying property is also a much more straight forward process than in the UK - with a ‘legal handshake' operated within the notary system. This speeds up the whole thing and makes it much less stressful.

The education and healthcare systems are free and of a high standard. Crime rates are very low and children are able to play on the streets in safety - and have a fantastic quality of life. With income tax at a flat 15% and no council taxes, we expect to see a growing influx of British entrepreneurs including those with young families.

Last but not least is the fabulous weather and of course the friendly people of Malta."

For more information, go to http://www.maltabuyproperty.co.uk/ or email: contact@raywoods.co.uk.

Malta is hot property

Catherine Deshayes — 03/02/2010 11:44:00

Increases in the number of low cost flights to Malta this year and high profile visitors as diverse as the Pope, Ronan Keating and the Prodigy mean that the this small island will be in the spotlight. The World property downturn and bank crises have barely caused a ripple in the domestic property market...

The world of overseas property has been turned upside down in the wake of the global financial crisis. Financial difficulties continue to haunt many of the previous hotspots such as Spain, Greece Cyprus and Portugal. Excessive speculative building has of course depressed long term prices in many of those Countries.

This has prompted a search amongst some buyers for safer havens for their hard earned savings.

In the UK and Ireland, increases in taxation, low savings returns and a desire for a better quality of life are slowly bringing buyers back into the market for overseas property.

In spite a small dip during the trough of the recession, demand and property prices in Malta have continued at a high level supported by high levels of liquidity amongst locally based banks and the relative protection of the Euro.

Ray Woods of http://www.maltabuyproperty.co.uk/ said,"The domestic market for property in Malta has held up really well. The demand from overseas buyers has changed however and is now more diverse. The number of buyers from the UK did fall because of the steep decline in sterling and in the case of Ireland, the domestic economic situation.

However, there has remained a pent up demand from buyers in those Countries which is increasing as domestic house prices increase and the economies stabilise.

Those who cannot wait to move are renting property and this is driving up investment returns.

We have also seen increased interest from buyers in other countries. In particular, we have noted a number from South Africa concerned with their domestic security situation and the future for their families. As another example, Malta is close to Italy and is seen as a great place to invest in a second home.

Over 100,000 students from across eastern and western Europe come to Malta each year to learn English and fall in love with the lifestyle. They are becoming the overseas property buyers of the near future.

Malta's unique combination of location, climate, low crime rate and an English speaking population have always been a magnet for buyers. The dramatic increase in low cost flights to the island from across Europe has brought a younger visitor, many of who have young families - and are envious of the quality of life on an island where children can still play safely on the streets, where they can be assured of high standards of education and healthcare and where income tax is 15%.

Air Malta the national airline, is also helping to drive visitor numbers by offering significant reductions in fares this year."

The Pope visits Malta in April - and music icons Ronan Keating and the Prodigy will be playing to sell out concerts on the island in the same month. This will be a guarantee that the world media spotlight will be on Malta at the very start of the visitor season.

As if that wasn't enough to tempt buyers over, http://www.maltabuyproperty.co.uk/ are offering £250 cash back on any property deal signed by the end of May. They operate in association with Frank Salt Real Estate of Malta and can also offer discounts on Air Malta flights for property seekers.

For more information, go to http://www.maltabuyproperty.co.uk/ or call 0800 781 1898 (UK) or 00 44 121 373 2440.

Malta: market proposals

Catherine Deshayes — 12/10/2009 11:39:00

The Chamber for Small and Medium Enterprise (GRTU) has made a string of proposals designed to help revive the Malta property market, in preparation for the country's upcoming Budget...

The GRTU's top suggestion is that first-time buyers should be given a one-year concession from paying stamp duty on all homes in Malta priced at €120,000 (£110,000) and under.

The chamber believe that this measure will help increase demand for property in Malta among first-time buyers, which is currently at an historical low, and help with the sales of more Malta properties. The Malta property sector is currently experiencing somewhat of quiet period.

A spokesperson from the chamber said: "The GRTU has always advised the government in helping first-time buyers to meet each requirement."

The chamber is also proposing the reduction of the current 35% withholding tax on promise of sale to 12%.

The government has also been urged to abolish the 1% fee paid on the promise of sale, which has, in the past, deterred some people thinking of buying a home in Malta. The chamber wants the fee to be replaced with a non-refundable €50 (£45) administration fee.

Source: www.homesoverseas.co.uk/news

New flights for Malta

Catherine Deshayes — 08/09/2009 10:29:00

Ryanair's announcement of launching a new route to Malta from Leeds Bradford International Airport will further broaden the appeal of the Mediterranean island nation and possibly boost demand for Malta property to buy and rent, according to local developer, Pender Ville...

Flights from Yorkshire's international airport will commence from March 25 in 2010. The new route to Malta will be Ryanair' 12th serving the country.

Michael De Maria, sales and marketing manager of Pender Ville's Pendergardens development, said: "The opening of the new route confirms the popularity of Malta with UK tourists, boosting tourist rental appeal for second home property owners."

Pendergardens is a cool contemporary development of 360 Malta apartments in St Julian's, a popular and attractive resort town located on Malta's north coast, a few miles from the capital, Valletta, a UNESCO world heritage site.

The apartments surround an impressive landscaped piazza. Available in Phase 1 are two- and three-bedroom apartments and three-bedroom penthouses, located in five buildings, from seven to nine storeys high. Soon to be released are 16 exclusive villas with their own private lockup garage and small pools all in a private road.

Pendergardens has also been awarded Special Designated Area status. Non-Maltese residents can only own multiple properties and rent them out in Special Designated Areas (SDA). With a property in an SDA, foreign owners also avoid the hassle of applying for an Acquisition of Immovable Property (AIP) Permit from the Ministry of Finance.

Prices at Pendergardens start at £176,000 for a two-bedroom 1,076sqft apartment, £224,744 for a three-bedroom 1,388sqft apartment, and £821,000 for a three-bedroom 2,648sqft penthouse.

Source: www.homesoverseas.co.uk/news

Malta: A home away from home

Catherine Deshayes — 04/09/2009 10:12:00

Malta ticks all the "right boxes" when it comes to choosing a location in which to purchase a home abroad, claims one official.

It is easy for Britons to become residents in Malta, the historic island in the heart of the Mediterranean that has been an EU member since 2004. Firstly owners are not required to spend a minimum period of time in the country each year and residency application conditions are straightforward and simple to apply for.

Applicants need to own assets outside Malta of at least 349,000 euro or have an annual income of at least 23,000 euro arising from outside the island. Applicants will also need to purchase or rent a property at certain established rates which are surprisingly affordable.

In addition, there is no inheritance tax or capital gains tax on your primary residence. Permanent residents can pay as little as 15% income tax on their remittance.

With summer sunshine levels running around 10/12 hours a day this is a wonderful Mediterranean climate offering year round pleasant temperatures.

Ideal destination

Trafford Busuttil, Chairman of the Real Estate Trade Section-Malta Chamber of Commerce and President of the Federation of Estate Agents says, "Malta is the ideal home in the Mediterranean.

"We are English speaking, have excellent health and schooling facilities, solid capital growth, an extremely advantageous tax structure, especially when coupled with International Trading Companies, mild winters and long hot summers, to name a few of the advantageous of re locating here. Malta really is a home away from home".

Italy to cite Malta on migrant boat

Catherine Deshayes — 21/04/2009 09:22:00

Italy is to report Malta to the European Union after being forced to rescue seaborne migrants its eastern island neighbour refused...

Interior Minister Roberto Maroni said Monday he was drawing up a dossier on the affair which would show ''clearly'' it should have been Malta's duty to rescue the 140 Africans found drifting in its waters Thursday.

After a four-day stand-off in which the European Commission sided with Italy, Italian Premier Silvio Berlusconi gave the go-ahead to pick up the ailing migrants from a Turkish freighter, the Pinar, that rescued them.

Some 20 of the weakest including two pregnant women were rushed to the southern Italian island of Lampedusa Sunday night and the rest came off two Italian Navy ships at Porto Empedocle near Agrigento in Sicily Monday morning.

Some of the migrants said they had only drunk sea water for the last two days.

When they have disembarked and been cared for the migrants will be taken to a migrant centre in central Sicily.

Malta said it, too, would present its case to the EC, admitting that the Pinar had actually been in Maltese waters but international law dictated it should head for the nearest port which was allegedly Lampedusa.

The Italian ambassador in Malta, Paolo Trabalza, will have talks Monday afternoon with Maltese Foreign Minister Tonio Borg who said Monday morning the matter had been a ''misunderstanding between friends''.

Source: www.italymag.co.uk

New flights from UK to Malta

Catherine Deshayes — 09/04/2009 09:18:00

The opening of several new airline services to Malta this year will further boost the Malta property market, says local developer, Pender Ville...

Malta will become even more accessible with the start of easy Jet's new twice weekly direct service from Newcastle, while rival, Ryanair, will offer two new weekly flights from Bristol and Edinburgh.

Scandinavian Airlines has also announced a new direct service from Stockholm.

Michael De Maria, Marketing Manager of Pender Ville's Pendergardens development, said, "These new flights will help bring in property purchasers who may have not even considered Malta before. Having a local airport will make second home ownership particularly attractive, making even weekend stays feasible. The increase in visitors will also greatly benefit the rental market."

Pender Ville is developing Pendergardens, a strikingly designed scheme of 360 apartments in St Julian's, Malta. St Julian's is a popular and attractive resort town located on Malta's north coast, a few miles from the capital, Valletta, a UNESCO world heritage site. Prices at Pendergardens start at £181,000.

Source: www.homesoverseas.co.uk/news

Cruising into Malta

Catherine Deshayes — 24/03/2009 09:24:00

In February 2009, cruise passenger traffic in Malta comprised 14,180 persons, an increase of 11,716 passengers over the corresponding month in 2007, according to new data published by the National Statistics Office...

Embarkations from and landings in Malta stood at seven and 36 persons respectively. Total cruise passenger traffic in Malta amounted to 26,760, with the absolute majority being passengers in transit.

Passengers from EU countries accounted for 60.4 per cent of total traffic, the main markets being Germany, the United Kingdom, Spain and Italy. On the other hand, the American market remained substantial, representing 63.9 per cent of non-EU incoming passengers.

On a gender basis, male passengers exceeded female ones by 6.2 per cent. The largest proportion of passengers - 48.2 per cent - comprised persons aged between 60 and 79, followed by those in the 40 to 59 age bracket who accounted for 29.2 per cent of the total.

The average number of passengers per cruise liner, which is defined as the number of cruise passengers divided by the number of cruise liner calls, decreased to 2,026 passengers per vessel for February.

There were seven cruise liner calls in February, bringing the total for year 2009 to 12 compared to two calls last year.

Source: www.maltamedia.com

Malteasers

Catherine Deshayes — 16/03/2009 11:46:00

What do celeb crooner Enrique Iglesias and more than one million people have in common? They have all fallen in love with the island of Malta, turning this picture postcard holiday destination into an investment property hotspot...

When the Knights of St John were exiled from Rhodes in 1530, the King of Spain leased them the Maltese Islands, for the yearly rent of one Maltese falcon.

Fast forward five centuries and property on the tiny Mediterranean island is now commanding serious money.

Prices have shot up by 400 per cent over the past fifteen years, with its warm climate, proximity to the UK, tax advantages and 6000 years of history attracting a more discerning crowd of second home owner and investor.

The island is fast becoming the cosmopolitan capital of the Mediterranean, with the regeneration and development programmes under way being credited with a new found international integration.

Most of the islanders speak perfect English, a legacy from Malta's period as a British colony, and now that budget airline Ryanair is running daily flights, demand for holiday property, already on the increase since Malta joined the EU in 2004, is on the rise.

Singer Enrique Iglesias has ‘fallen in love with the island.' "The water is absolutely stunning; I've been all over the world and seen beautiful beaches but the water here has no reason to envy other places, plus the friendliness of the Maltese is second to none," he says.

Although Malta now attracts 1.2 million visitors a year, until recently the island fell under many tourist's radars and is unblemished by the ravages that the Spanish Costas have had to endure.

James Vassallo, Senior Manager, Sales and Marketing for Tigne Point, one of the new development on the island, says, "Malta is coming of age and perhaps its late arrival on the international stage as a destination favoured by discerning investors is its greatest attribute."

Property in Malta is not cheap, but is usually a solid investment, especially when taking into account the tax advantages - the permanent residency scheme entitles property owners to pay income tax in Malta at only 15 per cent and both temporary and permanent residents benefit from double taxation agreements, which means that tax is not charged on the same income twice.

Buyers can choose from modern seafront apartments, to traditional farmhouses with their own internal courtyards.

The Valletta and Sliema areas are the most popular among holiday home buyers, while the quieter Mellieha and St. Paul's Bay areas are favoured by retired Expats.

Those looking to buy should ensure they buy within one of the islands' Specially Designated Areas, (SDAs) such as Madliena village in Madliena, overlooking the countryside with sea views; Portomaso St. Julian's, in a marina with sea views, close to the Hilton Hotel and in the trendiest part of town; Sellum village, Mellieha, situated in the north of the island a few minutes from Malta's largest sandy beach; Fort Chambray, Gozo, perched high on a historic fort overlooking Mgarr Harbour with views over to Comino and Malta; St. Angelo Mansions, Vittoriosa, situated in the south also overlooking a yacht marina with sea views to Valletta and St. Angelo Bastions; and Tigne Point, in the heart of Sliema overlooking Valletta Creek and the Bastions.

In the case of properties lying outside these areas, non-Maltese buyers require a Government permit and they are limited to buying one property in their personal name, and cannot let the property out.

For investment purchases, the best spots are the harbour areas. Sliema's seafront apartments along the promenade are popular, and the northern part of the island - namely Bugibba, St. Paul's Bay, Qawra, and Mellieha - is much in demand with tourists.

Picture by imageafter

Investors eye ‘magic Malta'

Jaimie Kanwar — 27/02/2009 12:23:00

Buoyed by a growing tourism and an ever-increasing number of low-budget airlines, Malta is an increasingly attractive investment proposition...

EasyJet has announced that it will be increasing its routes from April by including direct flights from Newcastle twice a week.

Ryanair has also announced two new twice weekly routes to Malta from Edinburgh and Bristol. Flights from Edinburgh start on 31 March and run every Tuesday and Saturday. Flights from Bristol will operate on Wednesdays and Sundays and will start on 5 July.

Scandinavian Airlines (SAS) is also launching a nonstop route from Stockholm-Arlanda airport to Malta starting in April 2009.

Strategically placed

James Vassallo senior sales manager at Malta-based estate agent Tigne Point says: "The increased air traffic is certainly good for the island especially in these trying times.

"Malta is strategically placed between the west and east and the growing importance of north Africa. It appeals to businesses looking to relocate to the Med and over the years business travel has constantly grown".

An additional advantage to owning property in Malta is the fact that the country offers average earners a genuine opportunity to cut their tax bill.

Malta charges no capital gains tax on property sales after three years of ownership, while residents are able to take advantage of The Maltese Residence Scheme, which charges a flat income tax rate of 15%, subject to a minimum tax liability of £3,000.

Source: www.homesoverseas.co.uk

Malta takes flight

Jaimie Kanwar — 13/02/2009 12:08:00

Airlines are beginning to see the full potential of Malta's growing popularity...

Malta is a delightful island set in the Mediterranean, steeped in history and boasting a host of World Heritage Sites, including the capital city Valletta.

The country has in recent years taken on an entirely different mantel as its tourism grows and investment comes both from relocating businesses and from those wishing to own a home here.

Now airlines are seeing the full potential of the rapidly growing popularity of the island with EasyJet increasing its routes from April by including direct flights from Newcastle twice a week.

Ryanair has also announced two new twice weekly routes to Malta from Edinburgh and Bristol. Flights from Edinburgh start on March 31st and run every Tuesday and Saturday. Flights from Bristol will operate on Wednesdays and Sundays and will start on July 5th.

Scandinavian Airlines (SAS) is also launching a nonstop route from Stockholm-Arlanda airport to Malta starting in April 2009.

Significant investment

Malta is becoming a focus for business people and those looking to locate in a region that has such easy access to Europe and the Middle East.

The island has attracted significant investment in the financial sector which, taken with the related and support services, accounts for some 12% of GDP.

This is predicted to grow substantially over the coming decade. Malta gives international firms an excellent services and communications infrastructure and offers the benefits of an exemplary regulatory environment plus a network of double taxation agreements.

James Vassallo, Senior Sales Manager at Tigne Point, commented: "The increased air traffic is certainly good for the island especially in these trying times. Malta is strategically placed between the West and East and the growing importance of North Africa. It appeals to businesses looking to relocate to the Med and over the years business travel has constantly grown".

Source: www.tignepoint.com

Malta looking stable

Catherine Deshayes — 04/12/2008 09:34:00

Property prices in Malta are expected to remain stable in 2009, according to Maltese developer, Pender Ville...

Located in southern Europe just off the coast of Sicily, property in Malta has long been a popular choice, as the country offers average earners a genuine opportunity to cut their tax bill, as it is a tax-efficient destination.

Malta charges no capital gains tax on property sales after three years of ownership, but any local or overseas income brought into Malta is taxable at a rate of up to 35 per cent. However, residents can take advantage of The Maltese Residence Scheme, which charges a flat tax rate of 15 per cent, subject to a minimum tax liability of £3,000.

Average Maltese property prices have appreciated at annual rate of around 8per cent over the past few years, although annual capital growth has slowed over the past year or so, amid a property sales market slowdown.

Michael De Maria, Pender Ville's Marketing Manager, said, "Since around 2003, Malta has enjoyed property price increases averaging around eight per cent. During 2008 this slowed and we expect prices to remain stable in 2009.

"The global downturn has affected demand, however Malta is in a strong position. It is a small island with a relatively large population and limited development opportunities. Overseas property owners are only allowed to buy properties to rent out in a few SDAs (Special Designated Areas) and because of this, Malta has not experienced a buy-to-let property building boom, leading to oversupply. Altogether, this means restricted supply ensuring long-term price growth."

Source: www.homeoverseas.co.uk

Irish malt

Catherine Deshayes — 25/11/2008 10:45:00

To improve commercial activities between the two countries; Malta and Ireland have signed a convention that aims to avoid double taxation as well as preventing fiscal evasion...

Malta's Foreign Affairs Minister Tonio Borg said that the signing was an important development in bilateral relations with Ireland, and one which would further consolidate Malta's network of tax agreements already in place with other European countries.

Malta's entry into the eurozone in 2008 has strengthened its appeal to international property investors and secured more economic stability. The EU and IMF have commended the island for its consistent and prudent economic and structural reforms in recent years.

Malta has a lot to offer: a stable Government, good tax system, excellent infrastructure, a skilled workforce of English speaking locals and an enviable lifestyle together with a clement climate, an attractive combination for a potential property purchaser.

Source: www.homesoverseas.co.uk

Global phenomenon

Catherine Deshayes — 11/11/2008 10:45:00

Worsening economic conditions have now taken a toll on almost every commercial property market in the world, according to a global survey of real estate surveyors...

The past few months have seen a sharp deterioration in performance and demand for real estate in many regions that had previously appeared resilient to the credit crisis, in particular parts of Asia and Eastern Europe.

The slump in commercial property is well established in mature markets such as the UK and US, but a report today from the Royal Institute of Chartered Surveyors shows that there are few property markets in the world that remain unscathed by the economic crisis.

The net balance of movements in global rents turned negative for the first time in the survey's history, led by weakness in the US, Japan, Spain, Ireland and India, while property values also worsened markedly in the third quarter.

The report, which measured sentiment among surveyors about the value and tenant demand for property, singles out the Indian market as being particularly hard hit. The region has attracted many overseas investors hoping to tap into the property needs of a previously booming economy.

Rising interest rates, higher inflation and a lack of liquidity is affecting confidence in the country, says the report, and 45 per cent more surveyors reported a fall in occupier demand compared with six per cent in the last quarter. The balance of surveyors reporting investor purchases plummeted from zero to minus 73.

The biggest slump in capital values has been in Eastern Europe, a marked turnaround considering expectations of growth only three months ago.

Source: The Financial Times

Forget Me Not: 5 Reasons to Remember Valletta

Jude Buttle — 29/10/2008 00:41:00

Valletta has welcomed emperors, heads of state, artists and poets through its gates and is now the permanent seat of the Maltese government. Malta's capital city is also a World Heritage site and nothing short of an open-air museum, making it a great place to immerse yourself in art and culture.

Marble tombstones of the knights, St. John's Co-Cathedral

1. The Grand Master's Palace

The Palace was designed by Gerolimo Cassar in 1571 and from the time of its completion until the end of the Order of St. Johns reign in Malta (1798), the building was used by all of the Grand Masters.

In 1800, it became the official residence of the British Governors and is now used as the Presidential Office and Malta's Parliament House.

All the rooms are impressive and the armoury museum has fine examples of medieval armour and weapons, which were used by the Knights of St. John and their enemies, both before and after the great siege by the Turks in 1565.

2. Siege Bell

The Siege Bell is located on the Bastion between Fort St Elmo and the Lower Barrakka Gardens.

The memorial bell is rung daily at noon and commemorates some 7000 servicemen, merchant seamen and civilians who died while defending the island during World War II.

3. Fort St Elmo - War Museum

The War Museum, located within Fort St Elmo, is crammed with World War II memorabilia.

The star exhibit is the 'Faith' Gloster Gladiator bi-plane, which with its sister planes 'Hope' and 'Charity' played such a significant role in the air defence of Malta.

The story goes that although Malta only had three bi-planes, they were kept airborne almost constantly for three weeks to create the impression to the Italian air force that the RAF had more planes than they actually had.

4. Manoel Theatre

Built by Grand Master Manoel de Vilhena in 1731, the 600 seated Teatru Manoel is one of the oldest theatres in Europe and a baroque masterpiece.

Enhanced over the centuries, this theatre is a true architectural gem. Today, the theatre is one of Malta's foremost performing spaces, offering a wide range of national and international productions including opera, ballet, contemporary dance, music, children's performances and drama.

5. St. John's Co-Cathedral

St. John's Co-Cathedral was built by the Knights of Malta between 1573 and 1578, having been commissioned in 1572 by Grand Master Jean de la Cassière. St. John's, which was the Order's conventual church, was accorded Co-Cathedral status (the main Cathedral being the one at Mdina) by Pope Pius VII, in 1816.

Although the exterior of the church is unappealing, the interior is brimming with baroque architecture and imperial sculptures.

The massive vault inside was painted by Mattia Preti, illustrating episodes from the life of St. John the Baptist and the chapels are decorated with sumptuous monuments of the Grand Masters, as well as precious works of art.

Both the church and its oratory are paved with marble tomb-stones, under which are the remains of the knights. There are 364 slabs in total, all of which bear Latin inscriptions exalting the merits and deeds of the Knights of the Order.

The Oratory, which forms part of the Church, is noted for Caravaggio's masterpiece 'The Beheading of St. John', which is the only painting he ever signed.

The Cathedral Museum contains priceless works of arts, ancient hymn books, sacred vestments and the famous Flemish Tapestries.

Historical novelist, Sir Walter Scott, in Malta in 1831, called the Cathedral the most magnificent place he had ever seen and the tomb of the founder of Valletta, Grand Master Jean Parisot de la Vallette, lies in the crypt within the Cathedral.

Conclusion

With great cathedrals, palaces, museums and theatres, Valletta is a veritable treasure trove of culture and history. Malta's capital is an alluring city that once experienced is never forgotten.

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New property sites launched

Catherine Deshayes — 10/10/2008 09:49:00

TheMoveChannel.com, the leading international property portal, announces the launch of over 80 country specific property sites...

Each country site features in depth property listings that can be filtered by a multi criteria search engine. The investment opportunities listed include both residential and commercial properties, land and more unique property types.

Developers, estate agents and private owners who advertise with TheMovechannel.com will double their exposure by appearing on both the main TheMovechannel.com international property portal and the relevant country portal that their properties are located in. Advertisers however will not be charged any fee for this additional coverage.

Buyers can gain a valuable insight into countries through the dedicated country news, features, email newsletters plus online buying and selling guides.

Dan Johnson, Managing Director, comments, "We've recognised in the toughening real estate market, investors are adopting a more sophisticated and informed buying process.

"The new portals not only provide detailed information on the property stock available in a particular country but also fill in the gaps in investors' knowledge of a market through reference materials and frequent news updates," added Mr Johnson.

Source: www.themovechannel.com

Malta celebrates 44 years of independence

Catherine Deshayes — 24/09/2008 13:36:00

Malta was granted independence from the UK, as a Constitutional Monarchy, on 21st September 1964, and this year it celebrates 44 years of independence.

Valletta and Floriana set the scene yesterday for the official celebrations marking the 44th anniversary of Malta's independence from Great Britain in 1964.

A number of activities and festivities marked the 21st of September, which is a national holiday.

Malta was granted independence after 56 per cent of voters taking part in a referendum held on the 2^nd May 1964 agreed to a new constitution.

The country geared up for independence after the talks of integrating with the UK collapsed in 1958. The Mintoff Government resigned and George Borg Olivier refused to form a government of his own.

From 1958 to 1962 Malta was governed directly from the British Colonial Office. The Nationalist Party was returned to government in March 1962 after winning the general elections.

St John's Co-Cathedral in Valletta hosted mass on the anniversary, run by Archbishop Pawlu Cremona.

Following mass, President Fenech Adami together with Prime Minister Lawrence Gonzi laid a wreath in front of the Independence Monument in Floriana.

Whilst unemployment in Malta is at its lowest level for some time, the country still faces challenges, such as illegal immigration and sustainable development.

The Maltese Prime Minister announced that in the coming days, Malta will be presenting the EU with a proposal on reallocation of immigrants in other countries. The proposal will be discussed during a meeting between the Ministers for Justice and Local Affairs.

Malta's joining of the EU in 2004 sealed their independence.

When the Knights of St John were exiled from Rhodes in 1530, the King of Spain leased them the Maltese Islands, for the yearly rent of one Maltese falcon. Fast forward five centuries and property on the tiny Mediterranean island is now commanding serious money.

Prices have shot up by 400 per cent over the past fifteen years, with its climate, tax advantages and 6000 years of history attracting a more discerning crowd of second home owner and investor.

Browse Maltese property for sale.

Malta mismatch 'good' for investors

Jaimie Kanwar — 31/07/2008 00:00:00

Now is a great time to snap up real estate bargains in Malta…

Growth in property prices have been on a downward spiral since 2004, when Malta acceded to the European Union – from a 20.3 per cent growth rate in 2004 to 9.8 per cent in 2005, 3.5 per cent in 2006 and decelerating to just 1.1 per cent last year.

While the trend is clearly bad news those who entered the Malta market over the last few years, it is definitely good news for prospective home buyers.

Last year’s slowdown in home prices was most marked in the price of flats, where it appears supply is far outstripping demand. The only area in which prices continue to grow healthily were terraced houses and houses of character.

The price of finished flats decelerated from its already modest growth of 2.5 per cent in 2006 to 1.8 per cent last year. Growth in the price of flats in shell form, meanwhile, shrank from 8.5 per cent growth in 2006 to 1.4 per cent in 2007.

Lending risks

Prices for villas saw perhaps the greatest deceleration, falling from 2006’s growth rate of 10.6 per cent to just 0.9 per cent last year, while the price for maisonettes and Town houses contracted by 4.6 and 7.1 per cent respectively.

Growth in property prices was kept afloat by more comparatively robust increases in the price for terraced houses, which increased by 4.6 per cent, and houses of character, the price for which grew by 11 per cent.

The Central Bank of Malta noted: “Risks associated with such lending have grown as a result of cyclical and structural factors,” the CBM observes. These include both an increase in the mismatch between the supply and the demand for property, and the high concentration of bank exposures to this sector.”

Malta's 'slow burn' boom

Jaimie Kanwar — 07/07/2008 10:20:00

Malta continues to be an excellent investment destination.

Malta has been both a desirable lifestyle and investment destination for many years now, and whilst the package holiday market appears to have slowed slightly, the opening of newer, more stylish hotels and more incoming budget flights seem to have kept tourism increasing at a steady rate.

It also helps that Malta is an island, meaning that the amount of property available is restricted purely due to the physical size and infrastructure limits of the island. You are certainly not likely to see the ‘super-resorts’ here that are popping up all over the world.

This fact continues to drive up property prices as buyers are not choosing from a huge amount of new property and everyone is competing for the same resale properties.

Combine this with a steady internal housing market as well as a safe and steady economy and increasing tourism figures, and I see the price of Malta property continuing to rise steadily over the coming years.

Some of the key points for Malta’s steady economic growth include:

Low unemployment
Relatively high GDP (and one that will continue to grow due to membership in the EU)
Likely improvements to infrastructure from EU financial aid
A lack of land (especially close to the sea) for development
Agreement to explore the commercial exploitation of petroleum on the continental shelf between Malta and Tunisia
Recent reductions in personal taxation (giving more disposable income to the islands inhabitants
Adopted the Euro in January 2008

In a recent EC review of Malta, The EC stated that it expects to see strong economic growth continuing throughout 2008 and 2009, along with a reduction in unemployment, an improvement in public finances, and a continuing growth in domestic demand.

The review went on to say also that the adoption of the Euro had provided 'a major stimulus to the economy' and that 'further advantages are expected to come from reductions in personal taxation and pressure for a reduction in interest rates'.

The future prospects for the Malta property market from an investor’s point of view are therefore very positive indeed. Malta offers a very safe environment for a real estate buyer looking to achieve solid rental yields and gain steady capital growth in their property.

As Malta is not an emerging economy, exorbitant price increases are unlikely to occur. Instead, the appeal of the island will undoubtedly continue and, as a result, income, yields and growth all look set to rise steadily, making Malta an attractive “slow burn” investment prospect.

Malta: The Med’s best kept secret?

Jaimie Kanwar — 12/06/2008 00:00:00

Foreign investors are finally waking up to the delights of Malta, it has been claimed…

‘Magical Malta’ has always held a place in the heart of the British, however its popularity until now, has never being overstretched because thankfully it missed out on the ‘party brigade’ who chose other unsuspecting Mediterranean hotspots. Malta therefore is the Mediterranean’s best kept secret; rich in history and culture it is now actively bridging the gap between old and new.

Malta is nestled in the Mediterranean just 96 km from the shores of Italy. An island of natural beauty, it is blessed with a warm dry climate and dotted with tranquil bays and natural harbours. Once part of the Roman Empire, Malta has, over the years, been inhabited by Phoenicians, Arabs, and The Knights of the Order of St John.

According to James Vassallo Senior Sales Manager for Tigne Point Marketing Ltd, there are considerable benefits to living and owning a property in Malta:

- Properties that are competitively priced with comparable other European resorts

- Numerous flights – many low cost airlines

- Superb year round Mediterranean climate

- English as an official language alongside Maltese

- High ranking European medical care under agreement with National Health Service.

- Expats can pay only 15% on any income brought into Malta with no local inheritance or capital gains tax = - - after three years permanent residence.

- Tradition of close affiliation with the British

- Relatively low cost of living

Mr Vassallo commented: “Foreign investors are starting to realise the true benefits of living or working in Malta. With a population of just 400,000 Malta is regularly used to welcoming 1.2 million tourists per year and is regarded as a year round destination.

”With a temperate climate, archaeological wonders and boasting attractive permanent residency schemes for expats, it is no surprise that Malta has stepped up a gear and is now regarded as a major player on the international stage. Malta is certainly coming of age.”

ECB hails Eurozone's 'shining light'

Jaimie Kanwar — 14/05/2008 00:00:00

The European Central Bank has lavished praise on the Eurozone's newest member...

According to the ECB, Malta was the Eurozone’s best performer in terms of price stability over the one-year period between April 2007 and March 2008, with a harmonised index of consumer prices (HICP) inflation rate of 1.5 per cent.

Malta saw the Eurozone’s lowest rate of inflation over the period, followed closely by the Netherlands with a rate of 1.7 per cent and Denmark’s two per cent. The country was, in fact, used as a price stability benchmark by the ECB and the European Commission as they deliberated on the Eurozone eligibility of 10 member states, for which only Slovakia made the grade.

For the price stability criterion, the three best performing Eurozone countries in terms of price stability are averaged and an additional 1.5 per cent is added on to the average – culminating in a reference value of 3.2 per cent.

Turning the tables

The situation represents a significant turning of the tables for Malta, which this time last year had hoped to meet the reference value so as to gain entry into the Eurozone, and this year being placed as the Eurozone’s best performer and used for the very same benchmark.

The achievement of the Eurozone’s best price stability performance is even more salient for Malta considering that the April 2007-March 2008 timeframe encompasses the country’s euro changeover period and accompanying inflationary concerns.

Malta was also used as a yardstick for long-term interest rates over the same one-year period. The reference value for long-term interest rates was set at 6.5 per cent and was reached by averaging the long-term interest rates of the three best performers in price stability, and adding an additional two per cent to the average.

Of the three, Malta had the highest long-term rate at 4.8 per cent, compared with the 4.3 per cent rate registered by both Holland and Denmark.

Malta’s ‘undiscovered haven’

Jaimie Kanwar — 08/05/2008 00:00:00

Most people have heard of Malta, but how many people have heard of Gozo…?

Residents are known as Gozitans rather than Maltese - and are regarded as a rather strange bunch by the mainland residents of Malta itself, due in part due to the much more rural nature of Gozo. If quiet is what you crave, then Gozo is the place to head.

The rental market on Gozo is strong as the island is a magnet for both the Maltese and overseas visitors alike – and tourism in both Malta and Gozo has seen strong growth in the last 12-18 months.

Cheap flights available

Ray Woods from www.maltabuyproperty.co.uk commented: “Gozo remains an undiscovered haven for many potential investors and those looking for a retirement or holiday home. Its quiet rural location does not appeal to everyone, but for those who seek privacy and relaxation, it is well worth a visit.

”Finance is readily available on Malta and Gozo – subject to status and the banks are in good shape. HSBC itself has opened a new financial centre on Gozo. The Bank of Valetta also offers competitive finance.

”The islands are is politically stable and the economy is enjoying a sustainable level of growth that is being reflected in property prices. Their proximity to Italy and the North African Coast makes them an ideal base.

”Low cost carrier Ryanair has daily flights from Luton whilst Easyjet flies from Manchester. Air Malta and the Charter lines also provide flights from most major airports.

ECB: Eurozone prices ‘normalising’

Jaimie Kanwar — 21/02/2008 00:00:00

Residential house prices in the eurozone are cooling off, according to the monthly bulletin of the European Central Bank...

The annual growth rate of residential property prices in the euro zone as a whole was five per cent in the first half of 2007, down from 6.1 per cent in the second half of 2006. In general, available estimates suggest that house prices continue to be on a gradual path towards normalisation following the acceleration observed between the mid-1990s and 2005.

Country data suggests that the moderation in euro zone house price inflation was particularly pronounced in those countries that recorded relatively high residential property price rises in recent years, such as Belgium, Ireland, Spain, France and Malta. By contrast, in the cases of the Netherlands and Austria, available data suggests that house price increases in 2007 were roughly unchanged compared with those recorded in 2006.

Slowdown in demand

In general, recent developments in the euro zone's residential property prices primarily reflect a slowdown in the demand for housing. Although household income showed sustained growth, a “crude” index of housing affordability, that is the ratio of households’ nominal disposable income to the residential property price index, remained relatively low, stabilising in the first half of 2007 after declining continuously since 2002.

This decline reflects the strong rise in house prices witnessed over the past few years and the increase in bank lending rates for house purchases observed during 2007. A moderation in housing demand can also be seen in the development of mortgage loans, the annual growth rates of which started to decline in early 2006. These indications of a softening in the demand for housing coincided with a fall in the growth of building permits granted over the same period.

Available demand and supply indicators suggest that a further moderation in residential investment growth can be expected in 2008.

Bright future ahead for 'Magic Malta'

Jaimie Kanwar — 07/02/2008 00:00:00

Malta remains an excellent place to invest in property and the country may be the success story of 2008…

Property investment site MaltaBuyProperty.co.uk has welcomed recent press reports highlighting an EC review of Malta - that sees strong economic growth continuing through 2008 and 2009, a reduction in unemployment, an improvement in public finances, and a continuing growth in domestic demand.

Malta's decision to join the EU and to adopt the Euro has provided a major stimulus to the economy. And according to Ray Woods, managing director of MaltaBuyProperty.co.uk, reductions in personal taxation and downward pressure on interest rates are likely to provide further stimulus to an economy that has struggled in recent years.

Meanwhile in the UK, instability in the financial services market shows no sign of deterring investment in foreign property, Mr Woods claims. Malta is generally regarded as a safe place to invest. Its property market has always been primarily driven by domestic demand - so improvements in the Maltese economy are also likely to feed into the property market.

Increase in inward investment

Despite it dependence on imports, Malta has largely weathered the increase in fuel costs, while reductions in personal taxation are likely to lead to an increase in disposable income. Its location and strong language skills when combined with membership of the Euro are also likely to lead to an increase in inward investment, the website continued reporting.

These improvements in the economy follow on from increases in investment in the infrastructure largely financed by the EU, an increase in air flights to the islands and a reduction in flight costs.

Whilst the traditional package holiday market has declined, the reduction in flight costs has led to an increase in tourism - with increased interest in second homes and in short breaks fuelling overseas interest in property investment.

'Fragile' Eurozone hammered by inflation

Jaimie Kanwar — 07/02/2008 00:00:00

Inflation in the Eurozone soared to record levels in January...

The inflation rate hit 3.2%, and consumer prices are now growing at their quickest rate in the 15-nations eurozone since records began in 1997. The rate is much higher than the European Central Bank's target of 2%. The ECB faces the tough challenge of controlling inflation, which can be done by raising interest rates, at a time when the economy is slowing.

The inflation numbers come as confidence in the euro bloc's economy among businesses and consumers slumps to a two-year low. A European Commission index of sentiment fell to 101.7 this month, the lowest since January 2006.

Fragile position

There are increasing signs of a slowdown in the region amid fears that financial market turmoil - and a possible recession in the US - could further destabilise the engines of growth in the bloc, such as Germany. But some analysts predicted that slowing job growth would dampen the risk of inflation from spiralling further, and allow the ECB to lower interest rates from their current level of 4%.

"We believe that eurozone growth will slow markedly over the coming months," said Howard Archer, an economist at Global Insight. This will dilute underlying inflationary pressures and eventually compel the ECB to cut interest rates rather than raise them."

IMF: World economy in 'turmoil'

Jaimie Kanwar — 04/02/2008 00:00:00

The International Monetary Fund (IMF) has warned of impending ‘global economic slowdown’…

But the revised predictions are still well short of being a global recession. The IMF's chief economist calls it a significant global slowdown. For the major developed economies, the IMF predicts continued, but much weaker, growth this year.

The new forecast for global economic growth this year is 4.1%, after nearly 5% last year. There is a very sluggish period ahead for the main rich countries. By the final quarter of this year, annual growth in the US will be below 1%, according to the IMF.

Developing economies are predicted to grow more slowly than last year, though still quite robustly in many cases. The report also warns of risks from financial market turmoil, which could mean 2008 turns out worse than its main forecast.

Those problems could affect spending in the rich countries and make for more significant spillovers to developing countries. In any event, the IMF's economists said that talk of de-coupling - the idea that the world is independent of what happens in the US - was "greatly exaggerated".

One exception to the pattern of slowing growth in the forecast is Africa. IMF economists say that reflects high prices for many of the commodities exported by African countries, improved economic polices and the fact that the continent is less exposed than Asia, for example, to problems in international financial markets.

Malta: The success story of 2008?

Jaimie Kanwar — 18/01/2008 00:00:00

Malta remains an excellent place to invest in property and the country may be the success story of 2008, says a property specialist….

Increased tourism

Malta is generally regarded as a safe place to invest. Its property market has always been primarily driven by domestic demand - so improvements in the Maltese economy are also likely to feed into the property market.

These improvements in the economy follow on from increases in investment in the infrastructure largely financed by the EU, an increase in air flights to the islands and a reduction in flight costs. Whilst the traditional package holiday market has declined, the reduction in flight costs has led to an increase in tourism - with increased interest in second homes and in short breaks fuelling overseas interest in property investment.

Investors hit the Eurozone jackpot

Jaimie Kanwar — 08/01/2008 00:00:00

Being part of the Eurozone makes countries more attractive to property investors, claim Blevin Franks…

Matthew Weston, Overseas mortgages manager, commented: ‘Being part of the single currency meant being part of a monetary system in which the European Central Bank (ECB) prioritised stability and low inflation, plus growth and job creation”.

"As economies prosper and redundancy figures fall, housing and letting markets will usually soar."

Describing the market as "very attractive", Mr Weston warned that despite the beneficial effects of joining the Eurozone, some markets were "saturated", but added that some also ‘hold a lot of potential".

The euro was launched in 1999. 13 European Union (EU) countries are currently members of the eurozone, as well as Andorra which is not in the EU but is jointly run by France and Spain.

Cyprus and Malta join the euro-party

Jaimie Kanwar — 02/01/2008 00:00:00

Cyprus and Malta have joined the Euro Zone, which is great news for property investors…

In the first major currency shift since the introduction of the Cyprus pound by former British colonial rulers in 1878, Cyprus joined the euro zone an hour before Malta, the other Mediterranean island which joined the European Union in 2004.

Officials hope admission to the euro zone can help bring together the economies of the divided island, split along ethnic lines since a Turkish invasion in 1974 triggered by a brief Greek-inspired coup.

"The foundation is laid for a unified economy with a common currency," President Tassos Papadopoulos said in a state address.

Use of the euro applies only to the southern part of Cyprus controlled by the island's internationally recognised Greek Cypriot government. The north, a breakaway Turkish Cypriot state recognised only by Ankara, will continue to use Turkish lira.

A new dawn

Les Calvert of Property Abroad commented: "When the euro comes in it will make the property market a lot more open and I expect the market to rise quite healthily”

The island of just under one million inhabitants represents 0.2 percent of the euro zone's GDP. To qualify for euro zone admission, Papadopoulos's administration successfully wrestled down budget deficits and tackled burgeoning public debt.

The island is slated to return a surplus - the first time since 1971 - of 1.5 percent of GDP in 2007 and a debt of 60 percent of GDP. In 2008, the surplus is expected to be 0.5 percent and public debt is forecast to fall to 48 percent.

"This is the dawn of a new era and a change to our way of life," said Papadopoulos.

The pound will cease to be legal tender in cash transactions at the end of January. From midnight Monday, businesses are obliged to use euros.

Authorities hope that within the first 15 days of January most Cyprus notes will be withdrawn from circulation. About 50 percent of coins will also be returned.

Investment boost

Cyprus is joining the euro zone with one euro trading for 0.585274 pounds. Adoption of the euro will boost investment, authorities said, although the primary market for its important tourism sector, Britain, is not in the euro zone.

Even though Britain has remained out of the euro mechanism, Tuesday's changeover is applicable to two pockets of sovereign territory London has retained on the island since granting Cyprus independence in 1960.

Inhabitants of the British-administered Sovereign Base Areas (SBA), including some 4,000 troops and 7,000 dependents, will use the euro in transactions
The Mediterranean island of Malta became the smallest member of the euro zone at the stroke of midnight on Tuesday.

The former British colony of some 400,000 people qualified for euro adoption after cutting its budget deficit from almost 10% of gross domestic product in 2003 to just over 2%.

It successfully overcame a last-minute struggle to rein in inflation caused by galloping oil prices, and in November Malta's annual inflation rate, at 2.9%, was running slightly below the euro zone average of 3.1%.

A Euro Changeover Committee has successfully allayed fears of inflation caused by euro adoption by reaching price-freeze agreements with most importers and retailers.

Historic day

Prime Minister Lawrence Gonzi and Malta Central Bank Governor Michael Bonello crowned the moment by withdrawing euro banknotes from an ATM.

"This is a historic day in the life of the country and if we face up to the challenge and exploit the new opportunities which monetary union offers, the step we are taking today should lead to stronger, more sustainable economic growth," said Bonello.

Malta and fellow Mediterranean island Cyprus became the 14th and 15th countries to enter the euro zone, having joined the European Union in 2004 with eight other countries.

Malta's exchange rate has been fixed at 0.43 lira to the euro since it joined the European exchange rate mechanism in May 2005.

Euro zone states are Malta's most important trading partners and euro adoption is seen benefiting its large tourism sector.

The opposition Labour Party, which had opposed EU membership for Malta, backed euro adoption and a public information campaign has been a widely acknowledged success.