The real estate market may ebb and flow, but one thing is for sure: property in Malta remains a secure investment. RE/MAX Malta manager Roderick Cucciardi and RE/MAX Malta franchise owner and manager Andrew Gauci here provide insight into the latest trends in real estate in the north of Malta.
Towns in Malta’s north have always been associated with the greener and bluer facets of local life. From properties on Qawra’s seafront and coastal villas in Mellieħa to country houses in Mġarr and apartments with valley views in Manikata, the north brings variety to the Maltese real estate market.
“The northern part of Malta is home to properties for all sorts of buyers,” explains Andrew Gauci who, at just 31 years old, owns and runs the RE/MAX franchise office in Qawra.
“It’s a very special part of the country because we’ve got affordable properties – with good square meterage – that suit first-time buyers, as well as high-end villas for those after a luxurious base on the island. Just like property will remain valuable in Malta in general, it will continue being a worthwhile investment in the north.”
Roderick Cucciardi, who runs the RE/MAX branch in St Paul’s Bay, agrees that desirability for real estate in the north continues to be on the rise.
“Property prices in this area – excluding Mellieħa – are still very affordable,” he explains. “Mellieħa stands apart because the town offers its residents a unique lifestyle on the island. It’s one of the most attractive parts of Malta, right on the sea with some stunning views. It’s also got some of Malta’s most beautiful properties, but they come at a higher price point.”
Wherever you are in the north, Mediterranean seascapes and green-speckled garigue are never far away. Combine this with overall affordability and it is a win for first-time buyers.
“When it comes to properties of good value, there are many opportunities to be had because there’s something for everyone here,” Cucciardi continues.
Property prices in this area are still very affordable
“The biggest sellers right now are properties between €200,000-€230,000. They’re favourites among young, first-time buyers – especially those seeking to benefit from the state’s financial incentives.”
For instance, income tax on the sale of property will be reduced from eight per cent to five per cent, and stamp duty will be levied at one-and-a-half per cent instead of five per cent for the first €400,000 on contracts published by the end of March 2021. Then, through its Home Deposit Scheme launched on June 3, the Maltese government is offering interest-free loans repayable over 25 years to eligible first-time buyers, aged less than 40, to finance the 10 per cent deposit payable upon signing a promise of sale agreement. The property value must not exceed €175,000. This will help prospective homeowners to get a foot on the property ladder.
“The government’s financial support together with the region’s affordability form an attractive combination,” Cucciardi remarks, “and while people used to think that towns like Mellieħa or St Paul’s Bay are far away, they’re starting to realise that they’re actually not far at all. Rather, they offer appealing possibilities – especially since we’ve got far less traffic congestion (and pollution!) here than elsewhere on the island.”
The north’s rural character has served as a pull factor for visitors to Malta as well as locals over the decades. Many Maltese have invested in summer properties and foreigners have retired by the sea. This means, however, that the real estate market in Malta is intimately tied to tourism.
“When tourism is affected, so is real estate,” Gauci asserts.
“Before COVID-19, both property sales and tourism were doing well. During the pandemic, tourism ground to a halt and real estate slowed down. In particular, the purchasing of buy-to-let properties has decreased markedly. From an investment perspective, it has not been a good time to spend. That said though, we haven’t seen any drastic price reduction in for-sale properties. Prices have remained stable, so I believe that given the stable market, property in Malta continues to prove itself as the country’s safest investment.”
The real estate sector will never stop moving, but that’s the nature of the game. RE/MAX Malta has kept up with the latest goings-on by offering more services online and unrolling precautionary measures such as the use of thermometers, masks and hand sanitisers at property viewings.
“We can’t just sit still and let the world pass us by,” Gauci says.
“Our agents specialise in properties in the north and know the area well. RE/MAX Malta has got the biggest database of properties on the island and with that comes a responsibility to continue providing our clients with the expertise they have come to expect from RE/MAX. With us, you’re in safe hands.”