Most people only think of residential property when considering becoming a landlord which indeed involves the least risk. Today’s Malta property rental market is buoyant due to the number of companies relocating to Malta from various industries such as internet gaming & finance just to mention a couple. This high demand created by a strong government infrastructure that accommodates the needs of these companies creates a natural demand for rental property in Malta from the company executives and staff that relocate to Malta to operate the respective businesses.
The type of employees that seek out employment overseas are usually highly educated or trained according to their job descriptions and therefore are able to afford an average to above average rent ranging from € 400 per month, which would accommodate them in a one bedroom apartment to € 700 per month which would able the employee to afford a luxury two bedroom apartment next to the seafront. Executives usually rent properties with prices ranging from € 1000 up to even € 3500. These budgets would afford them anything from a seafront apartment in Sliema to a condominium apartment in one of our luxury developments in Sliema (Tigne Point, Fort Cambridge) or St. Julian’s (Portomaso, Pender Gardens) that include pool facilities, parking facilities as well as security along with surroundng amenities.
Though the corporate executives are already training Maltese employees to take up these positions in order to save on costs, the rate of new companies setting foot down on our shores outweighs the rate that Maltese are being trained and therefore demand is continuous. There is also the facture that some highly skilled employees maybe headhunted or decide to move away from Malta and therefore a foreign replacement would be a necessity for that company.
The main areas of relocation are St. Julian’s, Sliema, Swieqi, Gzira, Msida as well as Ta’ L-Ibrag, High Ridge and Madliena. Some employees choose to live further afield however these are too few to even mention when we are considering company employees or executives.
The return on invest ranges from 3% to 5% and sometimes you may be able to get 6% if you invest wisely.
There is also a market in the South of Malta as well as in the North of Malta however we will touch those markets in a different article scheduled in the near future. We will also touch the commercial property in Malta market in the next issue.
It is recommended to contact a reputable Malta real estate agent in for further advice on how you can invest and achieve the best return on investment for your money.