Madliena, Swieqi and Tal-Ibraġ remain highly-sought-after residential localities in Malta. RE/MAX Malta co-franchise owner and branch manager for the region, Joe Caruana Curran, shares his thoughts on why this area continues to attract property buyers.
The average first-time buyer looking to get a foot on the property ladder in Malta has an inflexible budget. Affordability tops their list of criteria and it quickly dictates their search parameters. For this reason, towns like Sliema and St Julian’s in Malta’s commercial centre often fail to make the cut.
Within a stone’s throw, however, are Madliena, Swieqi, Tal-Ibraġ, Għargħur and Baħar iċ-Ċagħaq. While not renowned for their low-cost properties, these are prime locations for prospective homeowners who are searching for real estate at the higher end of affordability.
“There’s no sugar-coating that, in this area, we’re not talking about very low-budget apartments or houses,” explains Joe Caruana Curran, who manages the RE/MAX Malta office for this region.
“The real estate market in well-located towns such as Ibraġ and Swieqi is characterised by properties that start at about €250,000. The price bracket reflects what this area has to offer its residents and prospective investors.
“Firstly, there is a high return on investment in real estate in this area. While this nudges prices upwards, it also serves as a strong pull factor for buy-to-let investors as the rent they will receive from their investment property reflects the purchase price.
“Secondly, the location of these towns is magnetic for Maltese and foreigners alike. We’ve had a very high number of foreign workers moving to Malta and they’ve sought out homes that are close to their workplace and yet away from the hustle and bustle of Malta’s commercial side. This all translates into an upmarket area that promises sound investment opportunities and convenience for its residents.”
While first-time buyers may be tempted to dismiss towns like Madliena, Swieqi and Tal-Ibraġ at first glance, doing so would mean overlooking unmatched opportunities in Malta’s real estate sector.
This is particularly in light of fiscal incentives offered by the Maltese state. Recently, the government lowered stamp duty from five per cent to 1.5 per cent for buyers of properties reaching a maximum value of €400,000.
Triggered by this latest bid to boost the country’s real estate sector, buyers are re-evaluating their options and managing to stretch their budgets beyond their initial limitations.
“While the pandemic has knocked the purchasing of buy-to let properties,” Caruana Curran continues, “it hasn’t deterred people from buying residential real estate. It may have impacted their budget or preferred location, but it hasn’t stopped them from pressing ahead. The government’s post-COVID-19 scheme to support buyers certainly helps because it’s saving people money that they can put towards covering other costs.”
While reflecting on how these latest trends have impacted his office’s catchment area, Caruana Curran asserts that the region has always been, and will continue to be, Malta’s prime residential zone for all kinds of buyers.
“Thinking beyond first-time buyers or buy-to-rent investors, this is a part of Malta that’s ideal for those looking for a change. I have many second- and third-time buyers moving into the area, seeking an upgrade.
And I also have clients who have always lived here and want to stay but, perhaps due to age or other life circumstances, now want to downsize to an apartment. Opportunities in the region are growing all the time and it’s a spot I’d advise all prospective homeowners to keep an eye on.”
Visit www.remax-malta.com for more information on how RE/MAX Malta can help you buy, sell and let property in Malta and Gozo.