The Malta property market is currently in a state of flux. On the one hand, there is strong demand from both local and foreign buyers, which is driving up prices. On the other hand, there are concerns about the impact of rising inflation and interest rates on the market.
According to the Central Bank of Malta, the average price of a property in Malta increased by 5.2% in the year to December 2022. This was the highest annual increase since 2004. The rise in prices was driven by strong demand from both local and foreign buyers.
Local buyers are being attracted to the strong economic growth in Malta, which is creating new jobs and raising incomes. Foreign buyers are being attracted to Malta’s warm climate, its proximity to Europe, and its status as a tax haven.
However, there are concerns that the rising cost of living and interest rates could start to cool the property market. The Consumer Price Index (CPI) in Malta rose by 6.8% in July 2022, the highest rate of inflation since 2008. The European Central Bank is expected to raise interest rates in the coming months, which will also make it more expensive to borrow money.
Overall, the Malta property market is expected to remain strong in the short term. However, the long-term outlook is more uncertain, and it will depend on how the economy and the global financial markets perform.
Here are some of the key trends in the Malta property market:
- Strong demand from both local and foreign buyers
- Rising prices
- Concerns about the impact of rising inflation and interest rates
- The long-term outlook is uncertain
If you are considering buying or selling property in Malta, it is important to do your research and understand the risks involved.
Malta is an archipelago in the central Mediterranean between Sicily and the North African coast. It’s a nation known for historic sites related to a succession of rulers including the Romans, Moors, Knights of Saint John, French and British. It has numerous fortresses, megalithic temples and the Ħal Saflieni Hypogeum, a subterranean complex of halls and burial chambers dating to circa 4000 B.C
