It was March 7 when the calls stopped coming.

That was the day the first case of coronavirus in Malta was detected.

Since then, real estate agency Owners Best has been operating at a mere 10 to 15 per cent capacity.

“Our whole business is based on face-to-face contact. No-one wants to have strangers coming into their home for a viewing at a time like this,” says CEO Vincent Baldacchino.

Baldacchino has so far managed to retain all his 50 employees but he is not sure for how long. He’s disappointed that government measures have not included real estate agents, who are classed as self-employed and, therefore, not eligible.

It’s the same thing over at Quick Lets. CEO Steve Mercieca has shut the company’s 28 offices, leaving his over 400 employees sitting at home idle, waiting to hear what their future holds.

No-one wants to have strangers coming into their home for a viewing at a time like this

“We are hopeful there will be another phase of government funding that will include our industry,” he said.

“We’re doing our best to figure something out. We’ve been looking at what other countries are doing and if there is any way we can sell properties online or remotely.”

The problem here, he says, is that the banking or notary side of a sale cannot be done online.

“We’d need a total overhaul of the industry to continue operating if things stay like this long-term.”

Frank Salt, which has thousands of properties on its books, stopped operating a month ago.

“People were flying into the country and walking straight into our offices, so we couldn’t take the risk of infection,” says director Douglas Salt.

“Basically, everything is frozen. So far we’ve been able to retain the employees we have, but if it goes on for much longer, I’m not sure what we will do.”  

Rent prices starting to fall

NSI Short Lets dropped the rental price of a four-bedroomed apartment on Tower Road in Sliema from €2,700 monthly to €1,600.

Not one person was interested, says managing director Neville Arpa.

His company takes care of 50 to 60 properties, as well as a boutique hotel in Sliema. His Facebook page is advertising reduced rates, which include 50 per cent off deposits and 50 per cent off agency fees.

“As soon as the flights were cancelled, we knew we were in trouble,” he continues.

“I employ five people full-time and one person part-time, so it’s actually worse than if we just closed the business down, as we have to keep going to pay them.”

Lucky for Arpa, his company is eligible for government assistance.

“Because I now get €800 a month per employee, I can keep staff in jobs. While I still have to subsidise their wages, if I spread this out over three months, I should be able to muddle through.”

However, adding pressure to the rental market are holiday home-owners.

A study conducted by the Central Bank of Malta last May estimated there were 8,761 properties listed on Airbnb alone.

A lot of them are now taking the decision to switch their short-term rentals to long-term at a reduced rate, to try to recoup some losses from tourist cancellations.

“I’m lucky because I only have one property,” said one Airbnb host who did not want to be named.

“But I know about others who manage or own multiple properties.”

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