Frank Salt Real Estate registers 12 per cent increase in sales

Frank Salt Real Estate saw an overall increase of 12 per cent in sales and an equal increase in letting last year, while experiencing growth across most operations, the company’s annual general meeting heard on March 8.

The High Net Worth Residency Scheme has failed to lure any interest

Activity in the commercial property sector has also been very promising with increasing interest in office space, particularly from overseas.

Managing director Joseph Lupi told sales consultants and stakeholders the results had not all been positive, with a considerable drop in interest and sales to foreign nationals. The company saw an unusual number of sales falling through during the year. This was attributed mainly to the global recession, as well as the major blow handed to the real estate industry with the suspension of the previous Permanent Residency Scheme, which for the last four decades had served as a constant source of attraction to this lucrative market.

“The new High Net Worth Residency Scheme, introduced by the authorities in September, has failed to lure any interest whatsoever, and we seriously hope that this is adjusted to reflect what is happening throughout the world,” Mr Lupi said.

He explained the situation had seen a number of direct competitors like Spain and Portugal improving on their residency offering.

“We, on the other hand, have taken a step in the wrong direction and all but purged this window of opportunity for the Maltese economy and real estate market,” he warned.

The local market marginally improved throughout 2011, particularly given the excellent properties deals that were available, catering for all potential buyers, be it first-time buyers, second-time buyers and other interests. Apartments, maisonettes and terraced houses are considered to be the most attractive, followed by houses of characters and townhouses.

The property investments market is also growing rapidly. Mr Lupi said property has always been an excellent investment option in Malta. Regardless of the international economic slowdown, prices in Malta have maintained a stable level, having registered an overwhelming average of 6.9 per cent capital appreciation over the last decade, according to Central Bank official figures published early in 2011.

“With the current global financial turmoil, the instability of the dollar and the euro, and other international doom and gloom, property has become an even safer and stronger investment,” he added. “The growth in the letting market and the demand for buy-to-let properties is the cherry on the cake, with rental returns averaging between three to 5.5 per cent, depending on the type and location of the property. This ensures that an investor buyer gets a safe investment with an ongoing rental return.”

Last year, Frank Salt Real Estate gained international recognition and was awarded Best Real Estate Agency in Malta, as well as Best Real Estate Marketing and Best Real Estate Website in Malta, at the International Property Awards. The company also scooped the title of Best Real Estate in Europe – a first for a local real estate company.

In a brief overview of the company’s expectations for 2012, Mr Lupi confirmed that Frank Salt Real Estate is expected to grow further both in terms of operations and business activity, following investment in marketing and new business initiatives, backed by a stronger staff complement and an improvement in buyers’ confidence.’

This year, the company will embark on a number of initiatives targeting the local market. It has also launched a new company promise: ‘Best for choice, value and service’.

Specific activities will also be undertaken aimed at investors, foreign nationals and commercial property.

The company aims to invest heavily in its overseas agencies and marketing on an international level, notwithstanding the investment it has already made in markets such as Russia, South Africa, Scandinavia and the UK.

Company chairman Frank Salt told the annual general meeting: “Over the years, there have been many ups and downs in the property market but Frank Salt Real Estate’s philosophy was always to work hard and turn any difficulty into an opportunity. 2012 should be no different.”

Awards were presented to the best letting and commercial consultants and to the St Julian’s branch for top branch.

Director Grahame Salt an­nounced a forthcoming villa development in the L-Ibraġ area.