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Postcard
Best spots in the Maltese vacation property market
Date: 03/19/2007
It’s not only the sun and the crystal-clear sea that attracts thousands of visitors to the Maltese islands—the friendliness of the local English-speaking inhabitants, their rich history and culture, the relaxed lifestyle, and leisure facilities all contribute to Malta’s charm. With Europe's biggest budget airline Ryanair now running daily flights between the UK and Malta, and three weekly flights to and from Pisa and Dublin, demand for vacation property—already on the increase since Malta joined the EU in 2004—looks set to boom.
Property in Malta and Gozo has always been sought after as an investment opportunity: Malta’s property has appreciated an average of 10% to 12% for the past four years. It is important, however, to choose the right place, as values vary considerably between one location and another. Properties in areas further away from the sea, or far from main tourist sites (excluding village centers where farmhouses are sought after by people wishing to retire), have not seen much growth in value, but new marina developments–– such as
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Maltese “houses of character" When searching Maltese property, you’ll often come across the term “house of character.” This classification applies to old farmhouses in the countryside or in Maltese villages. Houses of character are traditional in style, made out of Maltese natural stone, and retain all their original features such as mangers, flagstone floors, arched ceilings, wooden beams and apertures, wine cellars, and mill rooms. |
Portomaso, St. Angelo Mansions, and Tigne Point––are a good place to start looking. Most of these new developments are in "Special Designated Areas" in upmarket districts, where foreigners can purchase as many units as they wish. Because they are so much in demand by both local and foreign nationals, they are constantly appreciating in value, and are popular as “buy to let” options. Rental return on the islands’ apartments is on the rise, presently at 3% to 4% every year, with higher rates commanded by apartments in the "Special Designated Areas."
For vacation rentals, the best spots in which to buy are the harbor areas. Sliema’s seafront apartments along the promenade are popular, and the northern part of the island––namely Bugibba, St. Paul’s Bay, Qawra, and Mellieha––is much in demand with summer vacationers.
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Where are the "Special Designated Areas?" Right now, there are six Special Designated Areas in Malta. They are: Madliena village in Madliena, overlooking the countryside with seaviews; Portomaso St. Julians, in a yacht marina with seaviews, close to the Hilton Hotel and in the trendiest part of town; Sellum village, Mellieha, situated in the north of the island a few minutes from Malta's largest sandy beach; Fort Chambray, Gozo, perched high on a historic fort overlooking Mgarr Harbor with views over to Comino and Malta; St. Angelo Mansions, Vittoriosa, situated in the south also overlooking a yacht marina with sea views to Valletta and St. Angelo Bastions; and Tigne Point, Sliema, in the heart of Sliema overlooking Valletta Creek and the Bastions. More Special Designated Areas are earmarked for later this year. |
A two-bedroom apartment in one of the most sought-after areas of Sliema or St. Julians, near the seafront and close to all amenities, starts at around 146,000 euro ($193,000). For 186,350 euro ($246,110), you can find a one-bedroom apartment in the new development at Portomaso in St. Julians. Apartments in Bugibba, for example, would start at 104,822 euro ($138,600).
[Editor’s note. Vanessa Lupi works for Frank Salt Real Estate Ltd, and will be happy to help you source property on the islands. She can be contacted by phone at +356 2138-1400; e-mail: vlupi@franksalt.com.mt; website: www.franksalt.com.mt ]
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