In the year-end, turnover for Malta’s real estate reached 3 billion euros by the end of 2022 , the same amount as 2021. The remaining 274 million euros will result from the real estate reservations agreements that were signed on January 20, 2022.
The data was released in The Malta Developers Association. The data show that the housing demand in Malta is similar to pre-crisis levels, and is increasing despite the pandemic as well as closing of border.
How much will a house cost in Malta in 2023?
The price of real estate is based on two variables which are: the type of home and the area. They were analyzed by the real market analyst Djar and Djar and the Ernst & Young consulting agency in their report of the outcomes of 2022.
The price of homes at 2022 end was compared to the rise in prices during the final quarter of 2021. Townhouses saw the biggest drop in cost. The price of apartments, maisonettes and penthouses have hardly changed in the past year. However, terraced houses went up.
The cost per square meter for buying an apartment also depends on the kind of property as well as the area where it is located.
Malta can be divided in six areas. The capital city, Valletta is situated located in Valletta, which is located in the South Harbour region and the popular resort town of Marsascala is located in the South East region. Other important cities within the North Harbour region include Sliema, Birkirkara and Gzira.
The most affordable real estate market Malta is located in islands like Gozo. The most expensive flats is found in Gozo’s North Harbour region and the most expensive price for terraced homes is located in Gozo’s Northern region.
Rentals for long-term leases are among the lowest rental options on Gozo. The most expensive rental options are located in regions such as the North as well as the South Harbour regions. The percentage index of the city was determined through the Central Bank of Malta. The cost average per contract of rental in Sliema was calculated to be 100 percent.
Additional expenses when purchasing an apartment in Malta
The purchaser of Maltese property is also required to pay fees and, if required it is necessary to obtain a purchase permit and an architect’s report. The following are the fees payable:
5.5% of the worth of the property, plus stamp duty;
0.25-1 percent of the total property’s value; notary fee
1.1% of the value of the property plus 18 percent VAT on fees / agency charges
EUR233 – purchase permit;
approximately EUR 300 in the architect’s report.
Stamp duty has been reduced temporarily. It will only be 1.5 percent of the worth of the property provided the value of the transaction doesn’t exceed EUR400,000. If the amount of the property’s value is higher than this threshold purchaser will be charged 1.5 percent of EUR400,000 and 5 percent of the remaining of the amount.
Rent or purchase of real estate property for permanent residency and citizenship
Properties in Malta is an asset that is liquid. The average annual growth in value of property prior to the crisis was between 5 and 10 percent in resort areas between 15 and 15 15%. Rent profitability averages between 5-10 percent per year.
The Maltese economy is expected to begin recovering from the effects of the pandemic by 2022. This is the prediction of the European Commission and international credit agencies. If the country is able to open the borders to visitors and buyers, the costs for purchasing and renting properties will skyrocket.
Experts in real estate Immigrant Invest recommend not to put off buying a house in Malta. It is much more efficient for those looking to invest to buy items now, as the prices are still affordable and there’s an offer on the cost of stamp duty.
Foreign buyers of property in Malta may also become citizens and residents of the country.
Permanent residence permits to Malta is granted when a number of conditions are met. The year 2021 is the date the applicant
Rents or purchases accommodations on the island;
Pays an administrative fee as well as the government fee.
Makes a donation to an Maltese non-governmental organization;
The evidence confirms the existence of assets starting at EUR500,000.
Maltese citizenship is only granted through direct investment. The applicant first gets the right to reside in Malta and then after a three or one year period is qualified to be considered for citizenship. In the event that the applicant’s application gets granted then the applicant can invest up to EUR690,000 into the Maltese economy and then becomes an Maltese citizen.
Direct investment can also involve purchasing or renting properties in the islands. The minimum investment is EUR700,000 for buying an investment property, and EUR16,000 per annum for renting.
Maltese residents are visa-free in Schengen countries. They also have the right to reside or work in the country without restriction. Additionally, having a Maltese passport grants access to all rights granted to citizens in any EU country member.
CEBI, Level 3, Dar Ġuzeppi Zahra, University of Malta, L-Imsida MSD 2080, Malta