The likelihood of picking up a bargain property in Malta increased this week with a new report showing that prices of homes on the island fell in the first quarter of 2011.
The Central Bank of Malta has found that its index of advertised residential property prices fell to the end of March 2011 for the second consecutive quarter, meaning property in the country is cheaper for overseas investors.
Villas, townhouses and terraces all fall in value
The Times of Malta reports that Ã¢â¬Ëthe All Property Price Index compiled by the NSO, based on contracted property prices also registered a decline during the quarter.Ã¢â¬â¢
According to the Central Bank\'s index, advertised property prices were 2.6 per cent lower year on year. The fall has been attributed to lower asking prices for terraced houses, the prices of which have fallen for three consecutive quarters, showing a 6.1 per cent year on year decline.
In addition, prices of townhouses, houses of character and villas, fell by an annual 12.8 per cent.
Apartment numbers and prices up in Malta
Conversely, the prices of apartments (which make up almost 60 per cent of the properties surveyed) showed a 1 per cent rise in values against a year earlier. The newspaper reports that Ã¢â¬Ëduring 2010, prices for apartments had risen in the first three quarters, before falling slightly in the final quarter.Ã¢â¬â¢
The number of building permits issued by the Malta Environment and Planning Authority Ã¢â¬â the majority of which are for apartments Ã¢â¬â also rose by a quarter over the last year.
The BankÃ¢â¬â¢s report also found that there are fewer properties for sale in Malta. The number of properties advertised for sale has fallen by almost 10 per cent between March 2010 and March 2011. In addition, the number of permits issued for the building of terraced houses and maisonettes also fell.