Chesterton, the premier property consultancy and estate agent, has established a presence in Malta promising superior quality services in the higher end market.
Property is still offering some of the best returns
The boutique operation, led by Chesterton’s Malta associate Christopher Pace on The Strand opposite Manoel Island, will draw on the group’s international experience and knowledge.
Chesterton is keen to emulate its successful Gibraltar strategies in Malta. Gibraltar’s economy is growing by more than five per cent a year, partly on the back of the business friendliness and favourable tax regimes which have been similarly adopted by Malta.
“We have identified a few niches,” Mr Pace, who currently heads a team of five, told The Sunday Times. “A major market we are seeking to tap is relocation services for the igaming industry which we have identified with the Gibraltar office. There are many similarities between the countries. We plan to offer a one-stop-shop for relocation primarily, but the business will also deal in high end residential and commercial sales and letting, all for local and international clients.”
Mr Pace described the sales market to be soft but regards the rental market as having strong prospects. Developers seeking to liquidate property were contributing to increasing supply at a time when rental property in higher brackets had the potential to return yields of six or seven per cent.
High-end letting is a major strength at Chesterton where the sector represents almost 50 per cent of group revenues, according to group chief executive Robert Bartlett.
Outlining the decision to bring Chesterton to Malta, Mr Bartlett said the association with Mr Pace was a major factor.
“Wherever we decided to open, the decision is very much driven around the people involved in the office,” Mr Bartlett explained. “Pro-active professional people are the key element in our business. Also, Chesterton is usually attracted to locations which see a flow of inward and outward investment. Malta ticked all the right boxes.”
Chesterton’s business has grown more than 400 per cent over the past four years on top line revenue, with an average UK transaction hovering around €1 million.
Mr Bartlett said the group had taken advantage of the economic downturn to expand the brand through intensive marketing to capture market share and demonstrate that service levels remained unchanged.
He added that property values continued to rise in prime markets around the world – the most affluent buyers have preserved their spending power and saw the advantages in the investment opportunities of unsold stock available in major locations.
As they sought to preserve their capital or increase their income, demand had risen particularly for property investments in politically stable markets.
“Property is still offering some of the best returns compared to other asset classes,” Mr Bartlett emphasised. “Even in ‘super prime’ areas, owners will still see a return of 1.5 to two per cent which is higher than those offered in the money markets. Properties in the mid- and upper market areas in the world can offer returns of 3.5 to six per cent, and even higher.”
Mr Pace, meanwhile, is also keen to attract buying and letting customers beyond the igaming and financial services clientele.
The South African market had particular potential, thanks, in part, to the absence of language barriers and time zone difference, and Malta’s low crime rate.
The island’s proximity with Libya was viewed favourably by expatriates returning to work in North Africa who were seeking to settle their families in Malta.