Malta Property Could Be 2007 Mediterranean Hotspot
Touch down of a new low cost airline often means an increase in property prices within driving distance of a regional airport.
Investors are looking at the Malta property market to see if they should invest on the Mediterranean island. The news that low cost airlines are to fly to Malta has given the Mediterranean island's property industry hope that 2007 could be an exceptional year for price rises and sales.
In recent years the arrival of low cost - sometimes referred to as 'no frills' - airlines to a regional airport has seen property prices within a two hour drive escalate in popularity and price, especially among British buyers for France and Spain.
With the advent of these flights to Malta, there is a possibility that demand for property in Malta will increase.
Commenting on the news, Malta holidays guide say that a double digit property inflation figure for Malta is quite possible for 2007.
'Cheap airline destinations have proved to be a magnet for UK property investors, and if that trend continues then prices will go up in the next twelve to twenty four months', they say.
'Other than the local market, the UK provides most buyers for property in Malta, and with the British economy doing well it's quite possible that the island will be seen as a good investment opportunity'.
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Tribune Properties, a UK company specialising in property for sale in Malta, agree that property prices could rise in 2007.
'With lower fares, Malta becomes a destination viable for 3 and 4 days trips a few times a year from the UK, and that will attract buyers to look at Malta in the same way they do France and Spain when considering where to buy a holiday home abroad. The Malta weather and low fares could be a magnet for buyers.'
There is a warning however from YourMalta that property prices on the island might not necessarily escalate in the same way that regions of France have seen when low cost airlines have started flying to their region.
'The Malta government has allowed more land to be used for property, and we anticipate a lot more apartment blocks being built short and medium term. Supply might well meet demand. Unless the political map of Malta changes and with it a change of policy towards her environment, there is a danger of Malta becoming the Tower Hamlets of the Mediterranean, or 1970's Spain where development spoiled much of the coast.'
Concern has also been expressed on the island about the infrastructure, with some tourists and potential property investors berating the state of the roads and - compared to mainland European and UK standards - dangerous construction sites.
'The real winners from the low cost flights could be the Malta hotels rather than the property industry', conclude YourMalta. 'We envisage a lot more people taking short three and four day holidays to Malta, often booking their flights and hotels on the internet rather than via a traditional high street travel agent'.
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