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Malta Real Estate Increase Highest In Europe




The Mediterranean island of Malta has experienced the strongest growth in property prices from European Union countries, and recent news could help see property inflation double digits for the next few years.

Data released by the European Mortgage Federation show that Malta’s increase of more than eighteen percent was higher than that of France and Spain.

Two EU countries, Germany and Austria, recorded a fall in house prices, while Portugal, Greece, and the Netherlands were just in positive territory.

And insiders on the island predict that strong growth could last for a few more years, giving Malta the potential to be seen by investors as a good place to buy.

Tribune Properties, a malta property agency that says property for sale in Malta, reports that the first quarter of 2006 saw a good level of activity, with the high end of the market posting particularly good levels of performance.

‘The first two weeks of January were slower than the same period last year’ comments Tribune chief executive Michael Johnson, ‘but since then the number of sales has matched last year – very good – but the villas with an asking price of one million euros and above has seen an increase in activity and a good number of sales.

Hotels and holidays in Malta

An independent information site for holidays and hotels in Malta also reports an increase in interest in their property pages since the first quarter of 2005, with the number of page views increasing by almost a third.

Property inflation sustained at the levels seen in Malta is rarely seen in other countries, but new economic activity on the island could see property demand at good levels for some years to come.

A new ‘smart city’ is planned which could see Malta competing with the rest of Europe as a commercial destination for the internet and other high-tech companies like long term rental malta. English is spoken fluently in Malta and, coupled with relatively low wages locally, inward investment and 5,000 new jobs are hoped to help the Maltese economy, which in turn will boost the property, hotel, and rental markets Vacation.

The tourism industry is vital to Malta’s economy and it is hoped that the arrival of low-cost airlines providing new flights to Malta will benefit the Maltese holiday industry as well as the many hotels in Malta.

If Malta can combine the attractions of a Mediterranean resort island with a modern infrastructure and high-tech business in a low-tax environment, today’s property prices could look like a bargain five years from now.

The introduction of low-cost flights to Malta from the UK will open up the possibility for more buyers to look for holiday homes on the island which could be used for long weekends and Malta’s hotel industry could reap the benefits of 3-year tourism and 4 days seeing the island as a viable place to visit.

Malta has traditionally seen most of its visitors from the UK, but this could change to a more diverse mix in future years.

Last year saw a record number of visitors from Italy and increased inquiries were received from estate agents across the island from Scandinavia, Holland, France, and Belgium, helping to increase the demand for properties in Malta.

After a few years of wondering how Malta’s long term rental malta would fit into the modern world, Maltese estate agents, hotel owners, and the holiday industry are starting to view the future with some optimism.