Investment Growth In Malta

Capital growth predictions

Property in Malta typically appreciates at an average rate of 8-10% per annum, except during 2009 when the global financial crisis had an impact on the market.

Rental yield predictions

Rental return averages at 4-5% p.a

Malta economy

In Q2 2010 Malta's GDP growth was predicted to be 3.9% up from 2009 owing largely to the following economic activities: financial intermediation, other community services, hotels and restaurants, utilities supply, construction, manufacturing, education, health, real estate, public administration and wholesale and retail trade.

The economy was boosted by growth in the financial sector in 2009 and despite the global financial crisis it grew by an estimated 22% during this time. Banks in Malta are well regulated - there were no bailouts and no liquidity problems during the global financial crisis.

Malta was late into the recession and quick to emerge and the government did not require the same austerity measures that other EU countries had to adopt.

The property market

The market coped well during the downturn thanks to a limited supply of properties, with the middle and upper segments of the market showing particularly good performance.

Medium to long-term capital appreciation is generally the most attractive investment strategy and there is a wide variety of property available in Malta within all price ranges.

Residential property prices did fall in 2009, however the market did not experience a burst bubble as some EU countries did prior to the recession so the affect was less severe.

There are some restrictions on foreign property ownership on the islands - a factor that has controlled the market somewhat.

Property is the most preferable investment asset, particularly amongst domestic investors due to a limited stocks and shares market.

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