The likelihood of picking up a
bargain property in Malta increased this week with a new report showing that
prices of homes on the island fell in the first quarter of 2011.
The Central Bank of Malta has
found that its index of advertised residential property prices fell to the end
of March 2011 for the second consecutive quarter, meaning property in the
country is cheaper for overseas investors.
Villas, townhouses and terraces all fall in value
The Times of Malta reports that ââ¬Ëthe All Property Price Index compiled
by the NSO, based on contracted property prices also registered a decline
during the quarter.ââ¬â¢
According to the Central Bank’s
index, advertised property prices were 2.6 per cent lower year on year. The fall has been attributed to lower
asking prices for terraced houses, the prices of which have fallen for three
consecutive quarters, showing a 6.1 per cent year on year decline.
In addition, prices of
townhouses, houses of character and villas, fell by an annual 12.8 per cent.
Apartment numbers and prices up in Malta
Conversely, the prices of
apartments (which make up almost 60 per cent of the properties surveyed) showed
a 1 per cent rise in values against a year earlier. The newspaper reports that ââ¬Ëduring 2010, prices for
apartments had risen in the first three quarters, before falling slightly in
the final quarter.ââ¬â¢
The number of building permits
issued by the Malta Environment and Planning Authority ââ¬â the majority of which are for
apartments ââ¬â also rose by a quarter over the last year.
The Bankââ¬â¢s report also found that
there are fewer properties for sale in Malta. The number of properties advertised for sale has fallen by
almost 10 per cent between March 2010 and March 2011. In addition, the number
of permits issued for the building of terraced houses and maisonettes also
fell.
