The number of people planning to buy or rent a residential property has declined since the beginning of the year.

A PricewaterhouseCoopers Malta survey carried out in June found that 45 per cent of those questioned had plans to buy, a drop from 58 per cent in January. 

As for those in the market for a rental property, the drop was from 16 per cent in January to 11 per cent in June. In January, 26 per cent of respondents said they had no plans to rent or buy in the near future but that figure went up to 44 per cent by June.

The audit firm’s Real Estate Survey sheds light on consumer sentiment and market trends in the property industry.

A total of 461 people aged 18 and over participated in its second online survey. 

To buy or rent? A drop in respondents wanting to buy a property from January to June. Source: PwC

What could the survey figures mean?

David Valenzia, Territory Senior Partner, said the results could suggest changes in traction in the industry when compared to the first survey, but the sector “resiliently” continues to fuel economic activity and push for market confidence.  

While fewer respondents are keen on buying a residential property, the June survey shows what seems to be a slight increase in the average budget.

Fifteen per cent – the largest share across the range of prices – are willing to spend between €151,000 to €170,000 on a property. In January, the biggest proportion, at just over 20 per cent, were looking for property valued at €100,000 to €150,000. That segment, which is the cheapest, is now down to below 15 per cent.

A total of 41 per cent of the survey participants in June fell into the €151,000 to €250,000 bracket.

In June, one-third of those questioned had a budget of over €300,000, while they made up only one-fifth in January. In both surveys, the most common buyers were people moving out of their parental home, at about a third of respondents.

Property as an investment? No thanks

The proportion purchasing property as an investment dropped by over half – from 23 per cent in January to only 10 per cent in June. 

While just over half of the respondents are seeking an apartment or penthouse, there was a sharp increase in the proportion looking for a townhouse, which rose from just nine per cent in January to 29 per cent in June. 

Where are people looking to rent? 

While the proportion of those seeking to rent has not changed a lot, the demand for rental properties in Gozo nearly doubled, from 10 per cent of respondents in January to 18 per cent in June. 

In January, St Paul’s Bay was the most popular locality to rent, followed by Ħamrun, Sliema, Mosta and Qormi. In June, the top localities were Sliema and Mtarfa. St Paul’s Bay came in third tied with San Ġwann, Mqabba, Balzan and Cospicua.