In a highly competitive marketplace for prime property, the distinction of carrying a brand has become a very valuable and unique selling point for local developers. The appeal of branded residences for property investors is obvious. Such residences offer prestige and recognition through association and offer investors the opportunity to buy into the quality, high levels of service and world-class amenities synonymous with high-end residential brands.
The concept of prime branded residences in Malta began properly in 1999, when the first phase of the award-winning and first truly upscale Portomaso marina development was completed. These residences offered an unprecedented and luxurious waterfront address covering an area of approximately 128,000 square metres, and since then this sector has gone from strength to strength with over 10 branded prime lifestyle residences carrying special designated area (SDA) status, scattered across Malta and Gozo to date. Another three very exciting addresses will open in the next five years.
The branded residence sector has come a long way since the first branded residences were offered on the market just over two decades ago. Growth in this sector is being driven by entrepreneurs continuously seeking to distinguish their offering in this prime market by striving to innovate in this sector. Developers are further encouraged by the fact that such branded residences are usually granted SDA status by the government, with all the important benefits that come with such a status.
Summarily, such status allows both EU and non-EU nationals to purchase property in Malta with the same acquisition rights as Maltese citizens. Purchasers are exempt from having to obtain an Acquisition of Immovable Property (AIP) permit regardless of their nationality. Therefore, expats are not limited by the number of investments they can make in such developments, giving investors great business opportunities in terms of being able to invest in these attractive residences while enjoying long-term capital growth and the potential to benefit from excellent rental yields that such branded developments are well known to benefit from.
The sought-after bustling towns of Sliema and St Julian’s could be said to be the birthplace of branded residences in Malta
The sought-after bustling towns of Sliema and St Julian’s, which together are known to make up the social capital of Malta, are home to Malta’s leading hotels, and which together offer a vast array of leading restaurants, shopping and entertainment options, could be said to be the birthplace of branded residences in Malta and home to almost 50 per cent of such residences today. As the sector matured, these residences have been developed in other coastal and resort regions, including in the northern and the southern regions of the island, and as the sector continues to mature, the range of brands continues to diversify.
Most of these cutting-edge developments have broken ground already and have become renowned mixed-use real estate landmarks, home to some of the most discerning residents. Some of the newer brands are on the verge of breaking new ground in the short term.
Portomaso Marina in St Julian’s is home to some of the most discerning residents.The newest residences are poised to elevate the standards further and change the landscape of real estate in Malta for good. Some of these forthcoming brands bear the signature of leading and internationally-renowned architects who continue to challenge the status quo with some of the most bold and inspirational designs to reach our shores.
A fine example is Mercury Towers, designed by the world-famous architect Zaha Hadid. Hadid was the first woman to receive the prestigious Pritzker Architecture Prize in 2004, and her major works include the London Aquatics Centre for the 2012 Olympics and the famous Daxing International Airport in Beijing.
Our records at Perry Estate Agents show that prospective purchasers are willing to pay a premium for branded residences of up to 20 to 30 per cent over an equivalent non-branded product nearby, and such premiums carry to resales too, making such residences sound investments. Price premiums are only one advantage of branded residences; vendors also benefit from greater visibility and greater marketing reach.
Purchasers, meanwhile, benefit from the assurance of quality and security that comes with investing with a known brand, with access to an unrivalled level of services and amenities. These usually include a communal swimming pool and landscaped areas, thus reducing the need to physically leave one’s home − a concept that has also proved to be hugely popular in the rental market during COVID-19.
We expect this trend to continue as Malta’s strong prime residential market continues to rise on the real estate global stage. Service, convenience and security will always be of great importance to the most discerning purchasers visiting our islands in search of upscale residences and branded residences are best positioned to offer such a lifestyle.
Robert Spiteri Paris, managing director, Perry Estate Agents