The Malta Developers Association has described May as “the best-ever month for real estate transactions in the country's history”, despite official figures showing residential property sales were down almost 14% that month.
The MDA based its enthusiastic proclamation on a rise in promise of sale agreements, which were up 16% in May. The total value of properties transacted in promise of sale agreements amounted to just under €450 million. The MDA said that was a 25% increase over the May 2022 equivalent figure.
Data released earlier this week by the National Office of Statistics showed a significant dip in residential property transactions throughout May.
Deeds of sale were down 13.7% and the total combined value of those deeds, €252.5 million, was 8% lower than in May 2022. It was the seventh consecutive month that residential property sales fell short of the total registered in the corresponding month in 2022.
But the MDA appears unperturbed by those figures, saying favourable market conditions, a strong economy and continued investments in the real estate sector were bearing fruit.
In a news release published this week, the lobby group emphasised that while final deeds of sale were down, promise of sale agreements were up. The value of promise of sale agreements was also up, it said.
In the first five months of the year, property with a combined value of €1.9 billion was subject to a promise of sale agreement. In the same period of 2022, property worth €1.6 billion was subject to promise of sale.
The MDA figures reflect promises of sale on all forms of property, not just residential ones, and are based on the lobby group's internal data. Its statement made no reference to the number or value of final deeds of sale throughout May.
"We are delighted to witness such an extraordinary milestone for the property market in Malta," said MDA president Michael Stivala. "The record-breaking sales figures in May are a testament to the strength and resilience of our industry. Despite the challenges posed by the global pandemic, the Maltese property market has demonstrated remarkable growth, solidifying its position as a prime investment destination."
The MDA hailed its members and other sectoral stakeholders for their work and urged them to uphold high standards of professionalism, transparency and integrity.
"The Malta Developers Association remains committed to fostering a conducive environment for sustainable growth in the property sector," Stivala added.
"We will continue working closely with the government, regulatory bodies, and our members to ensure the continued success and advancement of the real estate industry in Malta."