Rental investments in Malta have been on an upward trend for a number of years. Statistics show a 15% – 20% Year-on-Year growth over the last three consecutive years. The truth is that supply is not keeping up with the major demand from an influx of expatriates moving to Malta due to company expansion and the relocation of new foreign companies. It is projected that this increase in demand will continue to organically grow whilst the BREXIT aftermath and initiatives laid down by the Government will pay huge dividends to the Maltese Economy.
A forecasted 300, 000 to 400, 000 square metres of office space in Malta is presently on plan to be developed over the next five to ten years to bridge the gap between demand and availability for first class office space. This means that the infrastructure in Malta will be able to accommodate from 30, 000 to 40, 000 employees over the next decade, of which forty percent will be expatriates.
In other words, over 18,000 new jobs for Maltese Nationals may be created over the next ten years whereas the demand for residential rental housing for expatriates will continue to increase substantially.
We must acknowledge that a hike in rental property prices may place an amount of pressure on the Maltese Government to further increase housing subsidies for low income earners that may not afford to rent a property but this may not be such a bad problem to have if everyone looks at the bigger picture.
In fact, the Government of Malta has already issued an initiative for income earners that earn less than the aggregate income €23,000 per annum where a maximum benefit is being offered of €2000 subsidy.
If we continue to look at the bigger picture and work together to resolve the social issue that may affect a small percentage of the population, a rental investment is still a valuable asset that may garner anything from 3.5% rental yield.
If you are interested in discussing rental investments opportunities with us, contact one of the branches or directly on +356 2015 6800 or call me directly on +356 9966 3322 and I will be able to guide you in the best way possible.