The property industry in Malta is flourishing as prices continue to rise all over Malta, whether properties are for sale or to let.
This increase in property prices is due to a relentless demand over the past couple of years that has consequently led to a lack of supply all over the island.
While this property predicament is most prevalent in the Malta’s touristic areas, such as Sliema and St Julian’s, it has also spread to other areas, including the south, where a number of developments and business ventures have led to a drastic increase in property sales and rentals.
Investing in property in the south has become an ideal solution for many buyers, whether they are looking for their first home or at a second property as a rental investment.
People who have lived their life in the south usually opt to purchase property in the area and those looking for a rental investment are likely to purchase property in seafront areas such as Birżebbuġa and Marsascala, both extremely popular locations with foreigners and locals alike.
The affordability of property in the south has led to a boom in the rental market, as people came to realise the exceptional quality of property available at great value.
The demand for rental in the south has doubled over the past few years, with foreigners working in large developments and industries such as SmartCity, Malta International Airport and others working in the aviation, financial, gaming and maritime industries.
The current prices reflect the increase in demand, usually starting from €400 for an apartment in locations such as Żabbar, Fgura or Żurrieq.
As to the quality of the property, standards have increased substantially and the south now offers property with the same finishing and specifications as those found in the central parts of Malta.
Foreigners are captivated by the unique and raw architecture properties in the Three Cities area have to offer
While in the past properties were usually sold in shell form, nowadays they are being offered in superior quality and in a fully-finished state. Moreover, properties include energy-saving measures outlined in the Energy Performance Certificate (EPC), which is now obligatory for every new property and must be presented by developers and sellers to prospective buyers prior to their purchase.
The south offers an array of property types, including modern apartments in certain areas and older houses of character and farmhouses in other historic cities in the area.
The Three Cities is one of those areas that has garnered plenty of interest from specific clientele, namely foreigners captivated by the unique and raw architecture properties in these areas offer, including the historical city layout, with features like narrow streets and alleyways, exquisite palazzos and stone staircases – structures that encapsulate the lifestyle of eons ago.
The ferry link between Valletta and the three cities also contributes towards an increase in demand for these areas.
Due to the growing popularity of the Three Cities, current owners may be hesitant to sell and properties that are on sale are of a high value due to their historic or structural significance. Consequently, many of these properties require a certain level of restoration or refurbishment. Hence, the demand remains high both for residential and commercial property. The Three Cities have become coveted areas for investors who wish to convert old townhouses into boutique hotels or small guest houses, which have become increasingly popular around the island.
There are plenty of vacant properties in the south that could be made available for rent by their owners, specifically these old townhouses and character properties. These properties are not yet fulfilling their role of becoming homes to foreigners searching for unique property in the area.
Similarly, while areas such as Fgura and Żabbar may not be considered as prime locations for rental and sales demand, they have nonetheless become areas of interest among buyers and renters.
The constant development in the south, with projects such as Dock 1 in Cospicua, SmartCity and the embellishment of the Senglea waterfront, has undoubtedly led to a thriving property market, with flourishing business opportunities and a growing interest to invest in the lucrative south.
Gordon Dalli is Dhalia Fgura branch manager and property specialist.