Euro Set To Spur 2008 Malta Property Prices

When it comes to property and islands, there is a finite amount of land to build on, and property prices should be fairly safe even when other areas look likely to dip into recession.

Official figures just released have shown that the Mediterranean island of Malta enjoyed a rise in property prices of over 7 per cent compared to 2006.

Their was some disparity between different types of property, with maisonettes rising highest and apartments lowest, reflecting perhaps the amount of availability, especially with new builds, across the island.

Property investors have done well on the Mediterranean island in recent years, with good annual increases in prices over the last ten years.

But with EU membership now nearly three years old, and questions last year about Malta staying as a mainstream holiday destination, future property price rises are open to question.

While some analysts believe that entering the Euro will spur prices on further, it's possible that this will be offset by recession elsewhere in Europe, especially if the key UK economy slows down in the next twelve months.

The good news though is that tourist numbers are rising, and tourists often turn into holiday home buyers, with others liking Malta enough to move to the island full time.

Estate agents on the island though seem fairly confident that the rises will continue for a while yet. At the beginning of the year two leading international estate agents predicted ten per cent inflation for 2007.

One factor that investors could be taking into account when looking at the possibility of buying a property in Malta is that Malta is joining the Euro in January - something that has caused other countries real estate market to gather pace in the past.

Malta's low taxes are also inceasingly attracting new residents this year. With tax at less than half of many other EU countries, buying real estate in Malta often makes economic sense, as well as being a home in the Mediterranean for many. Buyers from the UK in particular often cite Malta's low tax regime as one of their primary motives for moving to the island.

Ryanair's new routes from London and Dublin to Malta have proved a success both for the airline and for the island since the launch in November 2006 of their Luton flights. Initial estimates of an extra 80,000 tourists due to Ryanair might be much higher than the true figure when results are published. Reports suggest that Ryanair might be considering further flights to Malta from different destinations. Whether this will be from the UK or elsewhere isn't clear yet.

But hopes that popular low cost airline easyJet would provide further impetus for the Malta property and holiday trade seems to have been dashed with reports in the island's press that talks have stalled, and a proposed London Gatwick route has been shelved.

A new low cost London Gatwick route would have provided competition for the island's national airline, Air Malta, and possibly have reduced the cost of flying to Malta further.

Air Malta, the island's national airline, has run a successful campaign to sell seats, and has opened up a new route from the North-West of England, flying from Liverpool's John Lennon Airport.

The advantage Malta has for UK and Irish visitors is that they drive on the same side of the road and English is spoken, and for non British Isles visitors Malta has well known language schools where they can learn English.

Seed Newsvine

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