Maltese property prices surged by 13.8% (12.95% inflation-adjusted) during the year to Q4 2016, based on the figures from the Central Bank of Malta (CBM). During the last quarter of 2016 property prices rose by 7.24% (10.44% inflation-adjusted).
The Maltese economy remains one of Europe’s fastest growing. After amazing economic growth in 2014 and 2015 of around 7.9% annually, growth slowed to 5% in 2016.
House price rises were experienced by all property types:
Apartments had a double digit price increase of 15.86% during the year to Q4 2016. When adjusted for inflation, prices were up by 14.99%.
Terrace houses saw a 13.33% y-o-y (12.48 inflation-adjusted) price hike in Q4 2016.
Maisonettes experienced the highest price surge, rising by 20.42% (19.51% inflation-adjusted) over the year to Q4 2016.
“Other houses”, consisting of townhouses, houses of character and villas, however, had a relatively low growth of around 1.96% y-o-y (1.20% inflation-adjusted) in Q4 2016.
Whatever your reason for buying a property in Malta, whether it’s your first home or as a rental investment, we can all agree that making a final purchase decision is never an easy ride, and one that requires much thought and contemplation.
When purchasing such a large and expensive asset, it is always a great idea to contact the experts, professionals who dedicate most of their time towards helping their clients find the Malta property that best suits their need, as well as their budget.
Flats for sale in Malta , working out your budget:
Buying any property is usually a long term investment which will require an equally lengthy financial commitment and is one step most of us will have to take in our lives. You will have to work out your income and expenses to see what you have left at the end of each month.
It’s important that you are realistic about what you can afford so you don’t go over budget leaving yourself short every month. There is no point in living in a house that you can’t afford to enjoy.
The following expenses should be included when you are planning to purchase a property:
- Minimum deposit of 10% of the value of the property
- 1% towards the stamp duty with remaining % to be paid on day of contract
- Architect fee to inspect property
- Notary fee
- Home Insurance
- Life Insurance
Once you have worked out these approximate costs, the next step would be to go to your local bank and discuss taking out a Home Loan (if required).