Property still remains the strongest asset… Even during a pandemic
In an economic downturn, there are very few safe investments that can put your mind at rest that they will actually make a solid return. In fact, with stocks and shares being volatile across several industries, many are finding it hard to find suitable avenues where to invest money.
In Malta, there has always been that one source of investment that keeps giving substantial returns and value, and that is property! Recent reports indicate that although the coronavirus pandemic has brought about economic havoc, the value of property in Malta has not diminished.
Although certain inflated property prices have been duly revised to reflect their realistic value, property as an asset remains strong. In a period with increased uncertainty, the Prime Minister of Malta Robert Abela, announced significant reductions in property transfer tax, in a bid to stimulate sales during a period of economic turbulence. These significant tax reductions have been well received by many, including first time buyers who view this as a unique opportunity to acquire a good property, paying a little amount of tax.
This manoeuvre highlights the commitment of the Maltese government to continue stimulating the property sector and ensure that the investment remains beneficial. Another strong signal that promotes the property industry is the fact that during Malta’s semi-lockdown, the construction industry was allowed to resume with its operations. This truly underscores the importance that is given to the property sector.
The strength of the value of property can be seen by the constant number of sites being developed on a daily basis. The demand for property seems unwaning and in such a small country where land is so limited, it does not take much to understand why. This is also coupled with the fact that high rise towers are slowly becoming the norm, attracting several people who reside out of Malta and local people interested in making a solid investment.
Many may argue that Malta is at risk of over-development and may lose certain aspects of its character but considering that it plays such a central role for the economy, we don’t see development stopping anytime soon.
What is your view about property as an asset? Would you still invest at this point in time? Let us know in the comments section below.