Malta Heads For 2007 Real Estate Hot Spot

Recently announced news that low cost airlinesfrom the UK, and that will attract buyers to look
are to fly to Malta has given the Mediterraneanat Malta in the same way they do France and
island's property industry hope that 2007 could beSpain when considering where to buy a holiday
an exceptional year for price rises and sales.home abroad. The Malta weather and low fares
In recent years the arrival of low cost -could be a magnet for buyers.'
sometimes referred to as 'no frills' - airlines to aThere is a warning however from the travel guide
regional airport has seen property prices within athat property prices on the island might not
two hour drive escalate in popularity and price,necessarily escalate in the same way that regions
especially among British buyers for France andof France have seen when low cost airlines have
Spain.started flying to their region.
With the advent of these flights to Malta, there is'The Malta government has allowed more land to
a possibility that demand for property in Malta willbe used for property, and we anticipate a lot
increase.more apartment blocks being built short and
Commenting on the news, a Malta holidays guidemedium term. Supply might well meet demand.
suggest that a double digit property inflation figureUnless the political map of Malta changes and with
for Malta is quite possible for 2007.it a change of policy towards her environment,
'Cheap airline destinations have proved to be athere is a danger of Malta becoming the Tower
magnet for UK property investors, and if thatHamlets of the Mediterranean, or 1970's Spain
trend continues then prices will go up in the nextwhere development spoiled much of the coast.'
twelve to twenty four months', they say.Concern has also been expressed on the island
'Other than the local market, the UK providesabout the infrastructure, with some tourists and
most buyers for property in Malta, and with thepotential property investors berating the state of
British economy doing well it's quite possible thatthe roads and - compared to mainland European
the island will be seen as a good investmentand UK standards - dangerous construction sites.
opportunity'.'The real winners from the low cost flights could
Malta Holidaysbe the Malta hotels rather than the property
One UK company specialising in property for saleindustry', conclude the guide. 'We envisage a lot
in Malta, agree that property prices could rise inmore people taking short three and four day
2007.holidays to Malta, often booking their flights and
'With lower fares, Malta becomes a destinationhotels on the internet rather than via a traditional
viable for 3 and 4 days trips a few times a yearhigh street travel agent'.