2014 was yet again another record year for RE/MAX Malta. The company closed the year with circa 28% increase in promise of sales, the most significant increase in transactions that we have experienced in the last five years.
This can be attributed to a number of reasons including but not limited to the first time buyer scheme, further gain in market share as well as increase in growth of sales associates operating within the RE/MAX Malta team, not to mention the continuous effort in training of their associates. RE/MAX Malta boasts of being the largest real estate company in Malta with over 17 offices open and over 200 sales and letting associates.
According to reports in 2014, Malta hit a high in property sales as well. Over 3000 buyers out of the estimated 10, 500 benefited from the first time buyer scheme, whereas there was a significant increase in up market sales to foreigners taking advantage of the Global Residence Programme (Non-EU Citizens), The Residence Programme (EU Citizens) and the Citizenship by Investment Schemes. The popularity of the first time buyer’s scheme, which exempts those that are eligible from stamp duty on their first €150, 000 spend, prompted the authorities to extend the scheme till the end of June 2015.
Regardless of the distraction of the festive season, January 2015 started where 2014 left off, with a consistent growth in property sales. The outlook of 2015 is that this trend will carry on throughout the year.
Continuous effort by the Government of Malta to market the country as an Island of excellence has further enhanced the chances of Malta having another record year, not only in real estate, but also for the economy. On the 17th of January, ratings agency Standards and Poor’s affirmed Malta’s rating at BBB+/A-2′ with a stable outlook. The foreign investment of €320 million in Enemalta (Malta’s Energy company), 25% increase iGaming Licenses as well as other major enhancements to the general infrastructure of Malta in 2014 are indications that 2015 will have sustained growth throughout the new calendar year.
The increase in investment in the country has a multiple affect on the economy, in particular, to the real estate industry but also to those that service the industry. The iGaming industry, for example employs over 10, 000 people, of which an estimated 4000 are foreigners that require accommodation in the form of rental apartments. An increase of 25% in iGaming licenses will definitely follow an increase in foreigners requiring finding a place to live. The development of the new power plant, which has been tied into the investment of Enemalta, will also create an increase in the demand for property to let in Malta to cater for the foreign staff, engineers and executives that will most definitely be working together with the locals.
It is envisaged that besides the organic growth, growth created by various schemes to increase foreign investment, there will also be a considerable growth in property sales in 2015 directly attributed from the rental investment market in order to cater for that demand.
If you are looking to purchase an investment in Malta or Gozo, it is important that you choose your estate agent wisely. A qualified estate agent that is specialised in your specific type of investment is pertinent to buying the property that suits your needs and avoiding making the wrong investment.