“Hey wait, I have barely heard of Malta! What’s all this about the Malta property market being hot now? How can that be?” Yes, while this may seem incredulous to you, the Maltese property market is currently hot and properties there are being bought and sold faster than a popular pancake house would be able to sell pancakes off of its griddle Okay, so that was not a good analogy, but it does describe the current situation with Malta’s property market.
Why is Malta’s property market so hot now?
The answer to that question is simple: demand for property (especially houses and commercial buildings) is much greater than supply. This, in turn, drives up the selling prices of property and encourages sellers to flood the market hoping to make good money by selling their properties at higher-than-market prices. ‘But why is the demand for property so great in Malta right now?’ The answer to this question can be attributed to Malta’s impressive economic growth rates. Malta is a relatively safe country in the European Union. Crime rates are low, and women and kids can safely walk the streets at night (try like at midnight without worrying about being mugged, raped, or molested!) How many other nations, even those in the European Union, could make a similar claim?
Aside from this, the cost of living in Malta is relatively low (compared to the costs in other nations in the European Union. These nations have among the highest cost of living in the world!) This makes Malta very attractive to foreigners because they know that their money will go further in Malta. The same low cost of living makes the cost of doing business very low. This attracts multinational and domestic companies alike, all of which have management and executive teams eager to do business in Malta because they know that the cost of doing business is lower than in the rest of Europe. Their operating, fixed, and variable expenses will be lower. They will actually make more money because their expenses will be much lower in relation to their revenue streams, and businesses actually make money when this is the case.
Then the Maltese government offers businesses generous tax breaks and incentives
Well, all national governments around the world do this. It’s not just the Maltese government. However, what makes the Maltese government so special in this regard is that it goes out of its way to make the nation very attractive to foreign and domestic companies by offering generous tax breaks and other incentives. This means that companies who build factories and offices in Malta will actually pay less in domestic taxes. This is especially attractive for many small, medium, and large enterprises who are constantly being driven by the hyper-competitive global economy to cut costs without sacrificing quality whenever possible. The generous other incentives offered to businesses of all types by the Maltese government only makes Malta even more attractive as a business destination.
The economy is booming as a result
Malta’s economy is one of the few in Europe which is actually growing at breakneck speed. The rest of Europe is in economic decline as many national economies are actually contracting because they are experiencing negative growth rates. In fact, Malta’s economy is one of the fastest-growing in the world. This attracts young professionals (read people with money) to want to move to Malta in search of better-paying jobs. The low cost of living in Malta is also an attractive magnet for these people. These people need a place to stay, and their desire for property means new money is currently flooding the Maltese residential market.
Now that you know
If you have gotten an attractive job offer and are contemplating buying a house in Malta, please consider using the services of RE/MAX Malta. Our superior agents will work with you to guide you in buying the house of your dreams!