With demand still high in Sliema for properties to buy and rent, Joseph Pullicino, the ReMax manager/co-franchise owner, estimates that there are currently around 2,000 vacant properties available.
“Sliema is without any doubt the most popular town in Malta – for locals and tourists alike. As a result property in Sliema is always in high demand,” he said.
“The number of properties for sale in Sliema is constantly changing, as new developments keep popping up at an incredible rate, but it is safe to say that there are currently around 2,000 vacant properties in this locality.”
Mr Pullicino believes that in spite of the high level of demand, this is still a buyers’ market thanks to the considerable mix of property being offered by developers as well as by individual owners.
“For those buyers who are only considering new properties, of course there are a good number of new developments/properties to choose from and we can easily accommodate everyone’s budget. The majority of these buyers are investors or first-time buyers.
“New properties constitute about 70 per cent of the market with price ranges of around €120,000 - €150,000. However, new properties which are basically ready to move into command a higher price of circa 15 per cent – 20 per cent compared with the second-hand market.
“The remaining 30 per cent of the real estate currently being sold in Sliema consists of individual owners selling their property. In most cases these properties will need modernisation or refurbishment. The prices of these properties are substantially lower than new builds,” he pointed out.
The Global Residence Scheme launched in June will provide a strong boost to the foreign market – especially for high-end properties.
“For non-EU foreigners it offers great advantages and favourable tax thresholds. Now, one may buy a property for €275,000 or rent a property for €9,600. The bond of €500,000 has been completely removed and the minimum tax threshold has been reduced to €15,000,” he explained.
“This new scheme puts us straight back on the map, where both Europeans and non-Europeans will find Malta or Gozo a very good option from a lifestyle, language and probably most importantly a fiscal point of view.”
There are at least five individuals for every available rental property
Of course, Sliema is not only a Mecca for buyers but also for those seeking to rent. Mr Pullicino confirmed that there was considerable demand for rentals – even more so than for sales.
“Without a doubt the demand is far greater than supply: There are at least five individuals for every available rental property. The constantly increasing number of i-Gaming offices who all seem to have Sliema as their first choice has brought with it a vast and continually increasing number of predominantly foreign agents contributing to this very fruitful property investment opportunity.
“This is great for investors who rather than keep their money safely in the bank, funds or other are investing in this market as we can almost guarantee a five per cent yield on your property through rental while having the comfort of obtaining almost back to back bookings or in other words, 100 per cent occupancy.
“In the wake of the recent announcement of property prices increasing in Malta by four per cent, this means your investment in this sector will grow by nine per cent annually. No other investment can offer more security and financially rewarding that purchasing an investment property in Sliema!”
Having said that, Sliema is a victim of its own success, and parking is considered to be the largest, if not, the only deterrent to the residents living or moving there.
“Without a doubt Sliema is the place to be – it is the main centre in Malta for shopping, restaurants, cafes, hotels and commercial enterprise – add to all this, the constant new construction/development sites with cranes in every corner of this once peaceful fishing village and the town becomes engorged with traffic without abate from 7am to 7pm. My concern is that there is no free land available to turn into large parking areas and without the possibility of widening streets, the situation can only get worse. The local council must obviously be aware of this but to date I have never seen any form of remedy or future planning to curb this problem either from the Sliema council or from Mepa. Unfortunately it seems that the revenue collected from construction permit fees, crane permits and wardens is more valuable for their respective agendas than the future or well-being of Sliema residents…” he said.