Property prices in Malta are likely to drop as a result of the COVID-19 crisis but it is still too early to predict how much the market will be impacted, CEO of RE/MAX Malta Kevin Buttigieg has said.
Asked on Lovin Malta’s talk show #CovidCalls whether he expects property prices to drop, Buttigieg responded:
“I’m sure there will be an adjustment in prices but if I say they’ll go down by 10, 15, 20%, I’d be a liar because I have to assess the situation and see what will happen after Covid.”
“No one since World War II has experienced something that has impacted the whole world so we don’t know how it will play out in Malta.”
“There’s some uncertainty, I believe we’ll have some reductions and I believe some people will think ‘I’m renting 6-7 properties, maybe I should rent two of them so I’ll reduce my risk and have some money in the bank’. This whole thing is going to change a lot of the way people think.”
If property prices do decrease, it will be a rare reversal for a country where property is widely considered the most stable investment possible, so much so that it largely withstood the impact of the 2008 financial crisis.
While not ruling out a potential decline in prices, Social Accommodation Minister Roderick Galdes said he is “positive” in the future of the property market.
“It is part of Maltese culture that property is considered to be the biggest investment,” he said. “I believe many Maltese people knew what they were doing when they invested and that they are still investing in property. However, we also need to see what will happen in the coming months to find out how the market will be impacted.”