Newspaper Malta Independent asked the heads of real estate companies about the prospects of the market.
The CEO of Zanzi Homes, Steve Mercieka, said that he does not foresee a drop in prices for "modern new buildings", but expects a correction for "old houses that were built 20-30 years ago and have not been qualitatively renovated". Mersieka explained that the cost of renting new and old housing is now at the same level due to a shortage of apartments for rent on the market. In his opinion, the correction of prices in relation to old objects is necessary. According to the expert, rental rates increased by 19% compared to 2022.
As for the assumptions about the impending "bubble explosion" in the real estate market, the CEO of Zanzi Homes said that he did not agree with this forecast. "So far, real estate has been growing, not falling, and I don't see any boom, definitely not there. I believe that we need to build more residential high-rise buildings, allocate territories for such construction. Apartments with one or two bedrooms are what the market needs right now.
Alliance Group CEO Michael Bonello also does not foresee a drop in real estate prices in the coming years. He said that a decline in prices is unlikely because they have stabilized and the market is still very strong. According to Bonello, the increase in rents over the past six months is due to a lack of supply. "As soon as the apartment is ready, it is rented out within a few hours." The expert also noted that the market situation is not like a bubble.
Douglas Salt, a member of the board of directors and a shareholder of Frank Salt Real Estate, said that, in his opinion, the fall in real estate prices is not expected, but rather stabilization will be "for some time they will remain at the same level". Regarding the increase in rent, the expert explained: "The cost of rent is growing, but this is not at the expense of local residents, but at the expense of foreign workers." Francis Spiteri Paris, founder and managing director of Perry Estate Agents, agrees with him. In his opinion, the rental market is a "foreign market", since mostly foreigners, not Maltese, rent.Experts interviewed by the publication agree that the Maltese housing market is not in danger of a burst bubble crisis, prices are more likely to stabilize, or there will be a slight correction. The acute problem of rising rental prices is associated with a shortage of supply, which needs to be eliminated through more active construction.
