Malta housing market stabilizes
After two unhappy years, house prices are stabilizing in Malta. Malta’s overall house price index actually dropped by 1.02% over the year to Q3 2010, when adjusted for inflation, but the nominal index rose 1.53%.
All the same, 2010 has been rough for some property owners in Malta:
* Terraced houses fell in value by 6.65% over the year to Q3 2010 (-8.99% in real terms).
* Maisonettes rose 2.18% in nominal terms during the year to Q3 2010, but their prices actually fell by 0.38% when adjusted for inflation.
* Apartments saw a 3.39% increase over the year to Q3 2010 (0.79% in real terms).
* “Other houses” unclassified as either apartments, maisonettes, or terraced houses were the star performers, with a 7.10% rise over the year to Q3 2010 (4.41% in real terms).
Malta’s housing situation looks a little troubling from the investor’s perspective – there’s been overbuilding, there are a lot of empty dwellings, and gross rental yields are low.
Source: Global Property Guide