2007 expected to be good year for the property market

Economic growth, excess liquidity in the monetary markets, increased government spending, low-cost flights and increasing buyer confidence are some of the factors which are expected to make this year very good for the property market, according to Joseph Lupi, managing director of Frank Salt Real Estate.

Mr Lupi was addressing the company's annual general conference, which took place on Tuesday at Palazzo Capua, adjacent to The Victoria hotel in Sliema.

Mr Lupi gave an overview of the general market conditions that prevailed last year and the company's operations.

The company registered growth throughout all its operations, particularly in the sale and letting of residential and commercial property in all its branch networks. It also increased its market share in sales to first-time buyers and second-time buyers, while retaining its share of sales to foreign buyers.

Sales to foreign buyers registered an increase when compared to the previous year, especially during the last quarter of the year. "We are pleased to note that Government has finally opened its doors to low-cost carriers," said Mr Lupi. "This already led to an increase in interest in Malta properties and more is expected this year."

Mr Lupi also gave a brief analysis of the properties available on the market for sale, emphasising the fact that there is a good mix of properties currently on the market and others which should be coming on the market this year to meet prevailing demands.

He totally disagreed with the general conception of having a "glut" of unsold properties on our hands. "As long as we build properties that buyers want, buyers' expectations are realistic. In addition, we should also try to attract foreign buyers, both as permanent residents and holiday home owners. These factors should guarantee a sustainable and healthy property market," he said.

With regard to recent claims that there are no properties for first-time buyers because prices have risen too high, Mr Lupi said: "Property, like any other asset, appreciates every year and this will continue to happen in a free market. The problem lies in the expectations of today's first-time buyers. These need to be in line with today's realities. On our database we have over 1,500 properties which could be suitable for first-time buyers and others are expected to come on the market this year."

Last year the company received the five-star International Property Award for Best Estate Agent 2006. Mr Lupi thanked all the staff for their contribution towards this prestigious award, which the company has received for the second consecutive year in recognition of its commitment to a high level of quality services and customer care.

Mr Lupi also outlined the company's business plan and objectives for this year, which includes the setting up of new specialised divisions, new services which will be made available to clients and developers, appointments of new overseas associates, an extensive local and overseas marketing plan and the opening of two new branch offices. Frank Salt Real Estate is currently carrying out a recruitment and training exercise to fill vacancies created by these initiatives.

At the end of the conference, Mr Lupi handed out the annual awards to the Best Sales Persons and Best Performing Branch of the year, as well as presented performance bonuses to various employees.

The conference was opened by company chairman Frank Salt who also thanked his staff for their continuous support in ensuring the growth of the company year after year, while reminding them to always look after their clients.

"The reason why our company has always been in the forefront of the real estate market for the past 37 years is because we have always sought to give a professional and honest service to our clients who come first before anything else," said Mr Salt.