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By Matthew Vella
A total of 256 permits were issued to 386 foreign nationals to buy property in Malta in the first four months of the year.
The figure for the first quarter of the year far exceeds those of 1998 and 1999 when a total of 155 and 202 permits respectively were given to foreigners. The figure is expected to exceed previous years: in 2000 a total of 296 permits were issued. By 2002, a total of 464 permits were issued, with property in Gozo also registering a steady increase amongst foreign nationals.
Property purchases by foreign nationals have increased steadily since 1998, at an average of 32 per cent every year between 1998 and 2002.
With well-established foreign ownership in Malta, accession to the European Union has only made the island an easier place to buy property. Foreigners today no longer need a permit from the Ministry of Finance. Malta’s colonial past makes it a favourite with Britons, by far the highest proportion of foreign nationals, especially when it comes to retirement or holiday homes.
Frank Salt Real Estate Joseph Lupi Managing Director says the number of 256 permits is “very positive” for the first four months of the year.
“It is obviously very positive. We registered an increase of 35 per cent in sales to foreign nationals in this first quarter, with the overwhelming majority being Britons at 86 per cent. The difference is that whilst the majority are purchasing holiday homes, many are also looking to buy for investment purposes, looking for opportunities in the rental market.”
Britons in fact remain the largest group of overseas buyers in Europe. Between 1994 and 2004, the number of British property owners increased from 250,000 to 1.38 million for the whole of Europe.
EU accession has made the prospect of settling in one of the new Member States, a more attractive one. All the property markets in Hungary, Slovakia, Slovenia, Poland, the Czech Republic, Latvia, Estonia, Lithuania, Malta and Cyprus are now open to foreign buyers.
Malta and Cyprus have already been tipped as the main crowd-pullers of the new Union of 25, with warm Mediterranean climates beating the chillier East European weather.
According to Lupi, EU accession has aided the process but also pumped up the price of real estate: “Between 2003 and 2004, property prices increased somewhat within the region of 12 to 15 per cent. The 1 May factor was put into play and the EU hype naturally served to increase expectations. However we are expecting to see these prices stabilise as of this very moment.”
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