Prices for Malta property are at historical highs after the last few years of increases .
Real Estate agents often allow sellers to 'name their price' rather than give them a professional evaluation of the true market price. There are various reasons why a property in Malta might be overpriced. Vendors sometimes set an unrealistically high asking price in the hope that a) someone might actually pay it and b) that it will give them a stronger negotiating position at the start and ensure that final transaction price is higher than it would have been had they started with a lower asking price.
However that doesn't justify all 'high' prices, and the asking price of any Malta property should be evaluated in terms of its market context and in comparison to other similar properties in the area (referred to as 'comparables').
Many properties in Malta for sale to foreigners are actually overpriced in terms of their market context and comparables. This is especially true of the resale market where individual sellers largely decide the asking price, but can also be true of new developments.
Another reason is because some sellers have unrealistic expectations as to what their property is actually worth. A further reason is because agents in Malta and / or developers in Malta sometimes increase the price if they think that foreign buyers are and will remain 'ignorant' of market values. This is more likely in those cases when the agent 'controls' the entire visit of the buyer thus preventing them from finding out what comparable properties are worth.
To say that a property is overpriced is not the same as saying that it won't sell at that price. The great tragedy is that people do actually buy overpriced properties on a regular basis. This is bad for the overall market as word often gets around, driving up the expectations of sellers and reinforcing the suspicion that foreign buyers will pay any price.
Experts are suggesting that if you invest in Malta property today you will expect to get your best return after 2010 meaning that in just a couple of years your malta property portfolio would have increased significantly.
Malta is also a popular choice for those looking for a low tax haven in which to establish their business which means that there is also a strong demand for commercial property in Malta – opening up the range of market opportunities available to a potential real estate investor.
In terms of the range of properties available to purchase in Malta they range from stunning villa properties complete with private pools that are ideal for letting out to the busy tourism market for at least 9 months of the year.
There are also a range of town properties from apartments and town houses that can be rented out short term and then sold on for maximum gains in the medium to long term. Of course, as mentioned there are also a lot of commercial property prospects available to an investor in Malta as well from buying and leasing office space to buying into warehouses and retail properties.
The key to successfully profiting from any property market is the appeal of that market and the appeal of the real estate sector in Malta is not only at an all time high it is intensifying creating an ideal environment for an investor looking for an overseas real estate investment opportunity.