Investment opportunities ‘abound’ in property market

Times may be challenging but there are “plenty” of opportunities in the property market for investors looking for a respectable return, according to Belair Property managing director Ian Casolani.

There is a potential for capital growth once the market recovers in a couple of years

“There has never been a better time to buy,” Mr Casolani told The Times Business. “It is a challenging time for corporate clients from sales and letting perspectives. But for investors, first-time buyers, and people looking to acquire a second property, there are plenty of opportunities where they can safely see a five per cent return. That is nearly impossible to earn with other asset classes. People who make clever decisions may also have potential for capital growth once the market recovers in a couple of years.”

Mr Casolani added location remains a key factor. Sliema, St Julian’s and the surrounding region have maintained their attractiveness on the rental and retail market. The number of Maltese rental and sales customers expressing interest in lifestyle developments has increased alongside the non-Maltese clientele as pricing becomes more attractive.

Clients looking to invest in properties normally tagged at €200,000 could secure a purchase at savings of up to €40,000 in the current climate, Mr Casolani said.

Belair’s managing director is as optimistic about the prospects of the market as most of his peers. The confidence in the sector recently spurred the real estate group to enter into a franchise agreement to expand the business’s presence.

After moving its head office to Gzira while retaining its original office in Sliema’s Bisazza Street, Belair had one more ambition to fulfil.

After lengthy negotiations, the company secured an elegant property complete with extensive garden in St Julian’s Spinola Bay – a rarity on the market – which allowed Mr Casolani to enter into a franchise agreement with an old business partner.

Mr Casolani said he and school friend David Aquilina – “a very like-minded person who brings a wealth of experience to the table” – had been developing and acquiring property for more than 10 years.

“We were never out to open a wide network of branches and we probably never will be,” Mr Casolani said. “But Spinola Bay was the one place an additional office would have been located. My brothers and I were born and bred there and our parents still live on the bay. Strategically, we believe it is a key location given the footfall of Maltese and visitors. David, who is an auditor, was the right person for the project, especially as I did not want to attempt to be in two places at once.”

The six-person team at the St Julian’s office belong to a separate company but share the Belair brand ethos and processes. Clients secured by the St Julian’s or Gzira offices are logged into a state-of-the-art central database. Mr Casolani stressed poaching between offices is avoided and the software diarises all contact with clients so processes are efficient.

Belair is now looking to recruit two more agents to join the St Julian’s team. The Gzira office currently numbers 17 and one person mans the Sliema office.

Established in 1967 by Mr Casolani’s father, Ian Casolani joined the business 18 years ago on what was meant to be a gap year after completing his university studies.

The business model at the time revolved around holiday rental and travel. The family business grew as Mr Casolani joined forces with Jean Camilleri and soon expanded the company’s property sales portfolio. His brother Niki was entrusted with expanding the rental portfolio. Their brother Marc has pursued a career in photography.

After years of recruiting experienced agents to fit the team, Belair sees negligible staff turnover and considerable client retention, Mr Casolani said. The team has also made a name for itself in relocation services for clients in the igaming and financial services sectors, and has successfully ventured into property management.

But Mr Casolani said similar franchise agreements to the one involving the St Julian’s office is not on the cards despite interest from potential partners.

“We have been approached to replicate the St Julian’s model but at this stage we have turned offers down,” Mr Casolani said. “You can never say ‘never’ in reality, but we are keen to preserve our boutique set-up. It is our differentiator and allows us to foster a very specific relationship with clients. That is an important part of the way we do business.”