Showing posts from 2015

The great rent revolution

One credit crunch, a low-tax regime, all served sunny-side up. How the property-proud Maltese went crazy for the rental market.

The property game used to mean pulling down townhouses and erecting five-storey apartment buildings. But things have changed at quite an unprecedented pace. From sites like AirBnB allowing hassle-free renting, to second properties being snapped up for rent by… “someone in the gaming business”, it’s no longer buy-to-sell any more: it’s buy-to-rent.

Just in August, the advertised property price index compiled by the Central Bank showed an increase of 6.7% in real house prices in 2014, the highest growth since 2005. It was the first time the property price index surpassed the pre-crisis peak reached in mid-2007.
But the big money-maker became the letting market. Home-owners climbing up the property ladder are holding on to their two-bedroom apartments, and their rental income pays the mortgage.

This is thanks to a combination of factors, driven partly by a sur…

House prices in Malta up 11% - Eurostat

House prices in Malta rose by 11 per cent in the fourth quarter last year compared to the same period the previous year, according to the House Price Index. It was the second highest annual increase among the EU states for which data is available, the highest being recorded in Ireland (+16.3 per cent). Malta was followed by Sweden (10.4 per cent), Estonia (10.1 per cent) and the United Kingdom (10 per cent), and the largest fall was in Slovenia (-4.4 per cent), followed by Cyprus (-3.3 per cent), Latvia (-3.2 per cent) and Italy (-2.9 per cent).

The highest quarterly increases were recorded in Malta (4.6 per cent), Ireland (3.8 per cent), Slovakia (2.1 per cent) and Luxembourg (2 per cent), and the largest falls in Latvia (-10.2 per cent), Lithuania (-4.3 per cent) and Cyprus (-3 per cent). Over all, house prices in the fourth quarter rose by 1.1 per cent in the euro area and by 2.6 per cent in the EU compared with the same period the previous year. Compared with the previous quarter…