The power of Malta’s rental market has caught the eye of investors big and small. Many are asking themselves “Is this the best time to invest in the buy to let market?” and “Should I buy an investment property?” As a real estate company with 35 years’ experience in the field we are extremely confident in the market right now, and we do suggest a letting property as an investment to clients. Once you’ve made the decision to go for it, the only thing left is to choose where to invest.
It wasn’t long ago that Malta’s letting market stood still – largely because most young people chose to live at home with their parents until they got married, so there was very little local demand for it.
However, 15-or-so years down the line that has changed completely. Malta’s rental market is now thriving due to the increased demand from two major markets: local and foreign. The number of foreigners living in Malta has increased, because of a number of factors including our healthy economy, high standard of living, and demand for labour in the finance and gaming sectors. Young Maltese people are choosing to move out on their own earlier, not necessarily because they are getting married but also for a sense of independence. Together, the local and foreign markets have drastically increased the demand for rental property in Malta.
In fact, today demand for rentals far outweighs supply in most parts of the country. The majority of rental properties entering the market get snapped up within just a few days. This has created ‘trending’ locations around the island – some of which are new on the radar, as well as others that have always been popular.
“Marsascala is definitely trending,” says Benji Psaila, who manages Dhalia’s letting branch. “The south as a whole has gained popularity because so many people now struggle to afford renting in Sliema and St Julian’s. Marsascala is booming and prices have shot up by 30-40% from a rental perspective in the last few years. But even with that rise it is still much more affordable than other spots.”
Benji explains that this increase in popularity is down to the number of companies that have shifted their business to the south of Malta, and to destinations like Smart City.
“There is also a lot of development planned for the area in the near future, so there is a buzz about the place,” he says. “Even gaming companies and other international businesses have been priced out of Sliema and St Julian’s, so spots like Marsascala provide many of the facilities their staff will want, including close proximity to the sea and the ability for them to walk to work.”
Other than Marsascala, Benji explains that the areas bordering St Julian’s and Sliema are also trending, namely Gzira, San Gwann and Birkirkara. “Renters in these areas find that they’re still close enough to Sliema and St Julian’s to make it feasible for them to cycle to work or take the bus, and rents are much cheaper here.”
Finally, Benji’s got his eye on a couple of places that are likely to gain popularity among renters in the years to come. “Pieta and Floriana, definitely,” he says. “If you’re looking for an investment, you’re still in time to bag a bargain in these parts,” he adds.
High budget – these areas are a firm favourite with locals and foreigners alike, and steady demand keeps their value high.
Moderate budget – these up-and-coming locations havent yet reached the values of their neighbours, so you’re still likely to find a great-value investment here.
Looking for the perfect buy-to-let investment property? Get in touch with Benji today by calling 21317613 or emailing him directly on email@example.com. Find the latest buy-to-let properties here.