Photo of the Sliema skyline (Instagram: bangher)
Property prices in Malta have shot up by the highest rate in the world over the past year, according to the latest global house price index published by real estate consultants Knight Frank.
The research, carried out among 57 countries, tracked price movements in the property market between the second quarter of 2017 and the respective period this year.
Malta came out on top, with home prices shooting up by an eye-watering 17% in the past 12 months. This growth was attributed to the island’s booming economy, a dearth of property supply and an emerging tech industry sparked by the country’s decision to regulate blockchain technology.
Hong Kong came second, with a growth of 15.9%, while Latvia came third, with a growth of 13.7%. At the other end of the rankings are Ukraine, Peru and Saudi Arabia, where house prices sunk by 4.5%, 1.6% and 1.3% respectively.
Malta beats out Hong Kong for worlds top home price gains. Good economic policies = strong economy = strong real estate market. Well done. @JosephMuscat_JM @edward_scicluna https://t.co/cRKGFbQiMm
— Malta Stock Exchange (@MaltaStockExch) September 14, 2018
The announcement was welcomed by the Malta Stock Exchange, which tweeted that good economic policies have created a strong economy and, in turn, a strong real estate market.
Yet it will raise concern among people at the lower end of the wage spectrum, who are finding it increasingly difficult to raise enough money to acquire a loan for a decent house.
Independently-compiled research shows the average Maltese wage remained static at €1,379 pre-tax between 2017 and 2018, making Maltese wages the 16th highest out of the 28 EU countries.