Property is one of those ever-green investments that you can never go wrong with. However, there are certain regions that offer superior investment opportunities in the property market, and right now Malta is one of such regions. A recent report by internationally renowned property consultants and wealth advisory firm Knight Frank indicates that Malta’s property market is at the top of the rung, having experienced consistent growth of 17% for multiple years running.
In addition, Malta is a rather robust investment market overall, as the island recorded economic growth of 6.6% in 2017 and there are promising business opportunities ahead as well. Another added benefit of investing in Maltese property is that it comes with an opportunity to gain a second residency at a beautiful Mediterranean island. This enables you to travel freely within Europe while getting all the perks that come with being a Maltese “local.”
If you’re a South African investor that’s interested in investing in Malta (and perhaps getting a second residency in the process), read on for more information on how you can do just that.
Why Invest in Malta
Malta has a gorgeous year-round climate with warm sea water that’s perfect for diving and swimming. The country’s beautiful climate is largely responsible for the 2.3 million tourists that descend on its shores each year, as the tourism sector recorded annual revenue of 1.9 billion Euros in 2017 alone. Plus, having a Maltese passport will give you easy access to all of Europe, specifically the Schengen region and even the United States.
The Maltese Property Market
Malta has a lot of fantastic property investment prospects for South Africans and foreigners in general, with prices for decent units starting at around 350 000 Euro or R5.8 million. Investors are given an option to purchase property either as a rental investment or as a holiday home. This is in addition to the 30 000 Euro (R500 000) residency fee and a 150 000 Euro (R2.5 million) mandatory investment in government bonds that you have to keep for five years from the date of the initial investment.
There’s also a 12-month waiting period that applies where you are vetted through certain criteria so that it can be determined whether or not you qualify for citizenship, and this comes after you’ve invested in property and Maltese government bonds. .
Once you get your Maltese citizenship, you’ll be able to travel to over 170 EU and USA countries without needing a VISA, which will save you tons of time and money if you’re a frequent traveller or globetrotter. You’ll also be able to study, work and live anywhere in Europe without having to go through the restrictions and regulations that non-citizens have to go through.
You see, Malta is strategically positioned to enable easy access to the rest of Europe and is straddled by a majestic ocean and rugged cliffs that make it a hub of trade in the Mediterranean. Not only that, but Malta has a rich history and culture that dates back millennia with some of its monuments predating the Egyptian pyramids, and there are also a few UNESCO World Heritage sites to boot.
However what makes Malta such a feasible investment for South Africans is the fact that travelling there from South Africa is really easy and there are daily flights that travel to Malta from Cape Town International Airport at a reasonable price.
When it comes to property options, Malta offers you a wide variety to choose form. There are legacy properties like country houses that have been around for centuries and are either updated to modern standards or preserved to maintain an authentic and charming “rustic” aesthetic. These usually cost about 6.5 million Euros and feature multiple rooms which means you can rent the property out as a holiday villa when you’re not in the country.
If you’re into more modern architecture, there are plenty of newly built townhouses available for sale, that are centrally located so that it’s easy for you to access all different parts of the island. These are typically priced at 4 million Euros, while a smaller apartment can sell for as little as 1 million Euros.
Again, you can always rent out your property through Airbnb or a similar platform, as local and international tourists are always looking for affordable and well-situated properties to rent out during the holidays. This is a great way to earn money while making sure that your property is well maintained even when you’re not in the country.
There’s a rising demand for Maltese property right now from investors all over the world and it’s not hard to see why. Malta is a superb investment region that’s shown continued annual growth consistently, and it has an economy that’s resilient enough to weather times of global economic turmoil.
For a list of property for sale in Malta visit www.maltasothebysrealty.com and get in touch with an experienced real estate agent that will guide you through the whole process of acquiring property in Malta.
Header Image Credit: 77 Great Estates