Property market booming in Gozo

Gozo in all its natural beauty is a haven for the increasing number of foreigners who are taking up residence there and a second home to many Maltese who are buying property either for business or pleasure.

However, land in Gozo is becoming scarce and there is currently a big shortage of properties. Hopefully, with big developments like Chambray and, possibly, the application for villas at Ta' Cenc, and Qala Creek, there will eventually be more properties on the market.

Manager of the Frank Salt Real Estate Gozo branch Marie Grech told The Sunday Times last week that there was a big need for upmarket properties in Gozo, such as villas and stylish apartments with a view.

"Land needs to be found somewhere and we must utilise it. Gozo is crying out for more properties. The demand for property in Gozo, both from foreigners and Maltese, is greater than the supply and land availability for permits is urgently needed," Ms Grech said.

The Maltese are buying a lot of property and want to invest in Gozo. Ms Grech thinks this is a wise investment because "if you choose well you cannot go wrong with property in Gozo".

What is happening is that many Gozitans owning plots of land in the villages are either keeping them in the family for their children or other relatives, or are asking for high premiums because they're aware that land is limited.

On the other hand, in Gozo there are thousands of unconverted farmhouses abandoned by their owners who inherited these properties years ago and are now living mainly in America, Canada and the US. Efforts should be made by possibly creating incentives for these properties to be placed on the market.

"This is creating a high shortage of all kind of properties. Gozo needs to be protected and building areas need to be supervised as we cannot afford to waste and lose Gozo's charm. But I still believe there are places where development can take place without harming the environment," Ms Grech added.

The property market in Gozo has always been healthy.

"We have seen huge increases in property value, especially in the late Eighties and mid-Nineties and also over the past four years. I remember my father saying 'you can never go wrong with property'. Property in Gozo is always a healthy and secure investment," Ms Grech said.

Gozitans in general always hold on to property because they feel that it's the best investment they can have, better than money invested in a bank. So they clutch to it tightly.

Nowadays, properties belonging to Gozitans are also being converted. Gozitans have learnt that the old houses are worth even more than newer ones. Some, especially the authentic farmhouses, are even rented out.

"The market has changed a lot since we started. Our market was mostly foreign in the late Eighties. But in the early Nineties the Maltese started purchasing property in Gozo. At the time, it was mostly businessmen who bought holiday homes here. Soon the demand increased and every Maltese wanted to buy a property in Gozo.

"This soon became the trend and this trend created a niche in the property market for smaller, affordable houses and apartments. This is when properties started to become smaller and land became more and more expensive," Ms Grech explained.

Ms Grech has been in the property market for 16 years and manager of the Gozo branch for 14. Working with property is a job you either love or you cannot do. If you don't have your heart into it the job becomes impossible, she said.

Ms Grech is passionate about Gozo. There isn't a place which she doesn't like. All the villages have their own charm, character and lifestyle.

The first question people ask Ms Grech is which is the better part of Gozo. "That is a question I cannot answer. Some places are larger, some smaller, some have more restaurants than others. At the end of the day, Gozo is so small that in five minutes you're everywhere," she said.

Having been in business in Gozo before joining Frank Salt Ms Grech knew everyone and everyone knew her. But she always loved property although she'd never worked in property before.

Farmhouses remain a favourite with a lot of buyers, especially foreigners, and the Maltese as well. But authentic farmhouses, just like antiques, are becoming almost impossible to find. Failing that, apartments with a view are always in demand. So are rustic houses with a small pool. These have two purposes: people buy them to enjoy them as holiday homes and rent them out in the summer.

There's a very healthy rental market in Gozo. Foreigners prefer to stay in these rustic houses with their family because they are self-catering, they have their own little pool and it's a rustic home which they don't have abroad. This leaves a good income.

The majority of foreigners who buy property in Gozo are British. There is an American market which wasn't there before and increased over the past five years. The kind of property a foreigner wants depends on whether he's looking for a property to settle in Gozo, in which case he looks for a house with a garden or an apartment with a view.

If he is looking for a small base, a holiday home, then it depends what his price bracket is. Normally, its Lm40,000 to Lm50,000. Many foreigners live in Gozo. They love the lifestyle and integrate very well with the people.

The property market has been doing exceptionally well over the past five years. "When this happens, after three years you usually end up with a such a shortage of property that prices really inflate, which is what happened. And in places like Gozo this shows even more because of limited space," Ms Grech argued.

The big demand by the Maltese for apartments in Gozo has been catered for with smaller, good-priced apartments which many Maltese can afford to buy.

"We have a good selection of these type of properties in all price ranges, but I also believe there is still a niche for the upper end of the market which we almost cannot cater for - the foreign upmarket - people wanting to buy villas, which are almost non-existent. And the few there are are becoming extremely expensive," Ms Grech said.

"A villa costing Lm250,000 may not be to the expectations of the person wanting to come and live here. We have a good numbr of clients who want to purchase property within this price bracket but we don't have the right properties for them.

"These are mostly British, Swiss and German. Recently, we've been getting a lot of Northern Europeans, like Finns, Norwegians and Swiss, mostly interested in diving, who go mostly for apartments. The Irish tend to buy property for rentals. We also offer a management service. We get the necessary permits to rent out the property and also help with the rentals and management of the properties."

The Gozo branch gets to resell many properties.

"Clients who have bought property from us in the past have come back to us to sell their property. "There were instances where the same property was sold over and over again to different owners, both local and foreign. Foreign owners normally tend to sell their property after three to four years and this provides us with a good supply of affordable resale properties.

"A finished apartment in Nadur belonging to an English doctor is up for sale again. This bright and airy apartment on the second floor enjoys open country and distant sea views and is on the market for Lm60,000.

"The old properties were fantastic. We were spoilt for choice. When we first started, we had clients coming in on their last day and buying properties, such as this apartment, for Lm20,000. That was the market then. It has changed now. And there was also a big supply of properties.

"At the time we used to just go to one village and show clients seven or eight properties. Now you have to go all over Gozo to show clients eight properties," Ms Grech chuckled.

Simonne Pace was hosted at the Ta' Cenc Hotel.