COVID-19 has sparked a boom in the national sales of luxury villas with private outdoor spaces despite the adverse economic effects that the pandemic has had on most industries and businesses.
“With the new health risks posed by COVID-19, people now put their mental and physical health higher on their new home wish list. The desire for a lifestyle that includes time spent relaxing in a private outdoor space has boosted the sale of villas with gardens and swimming pools,” said an article posted by RE/MAX analysing the current property market in Malta.
According to Clive Demicoli, the author of the article, around 90 percent of Europe has recorded optimal results in the property market.
Demicoli explained that due to the restrictions that have been imposed these past 18 months, the buyers’ requirements in a new home have shifted.
As people have been significantly increasing their time at home, they developed a newfound appreciation of it as an investment.
“Demand has grown for places with gardens, terraces, and sea or countryside views, as well as for those with extra space to create a study for remote work,” Demicoli explained.
However, there is a stark contrast when looking at the effects that the pandemic has had on the rental market.
This market generally caters for foreign clients and workers of iGaming and financial services sectors. And due to the significant reduction in tourism and the relocation of foreign business professionals, there has been a downturn in lettings across Malta and Gozo.
“Yet, as the health authorities gradually relax travel restrictions and visitors return, the rentals market could well surge once again,” Demicoli assured.
He even outlined the renewed government incentive schemes that form part of the 2021 Budget including the first-time buyers’ tax scheme that was extended and improved, giving them better subsequent tax rates when purchasing their first home.
The article concluded by stating that the ongoing success of Malta’s property market is an additional result of the island being a “nation of homeowners”.
“Maltese people generally prefer to invest in a home over leasing it.”
Will you be purchasing a villa anytime soon?