It could be a great time to buy a property in Malta after recent figures showed a fall in house prices brought about by an oversupply of property and a steep fall in demand for mortgages.
New figures from the European Central Bank (ECB) show that requests for home loans to Maltese banks fell sharply during the last quarter of 2011 and worse figures are expected for the coming year.
Oversupply of property in Malta
The ECB survey found that Malta is among six EU member states experiencing a ââ¬Ësignificant deteriorationââ¬Â in requests for new mortgages. The Times of Malta reports that ââ¬Ëthe other countries are Spain, Italy, Belgium, Finland and the Netherlands.ââ¬â¢
An ECB official said: ââ¬ÅMaltaââ¬â¢s results show the country is heading for some economic trouble if the trend reported by Maltese banks continues.ââ¬Â
The most recent Central Bank quarterly review found that property prices in Malta have fallen by 2.6 per cent in the last year while new building projects are also declining.
According to the most recent figures from the Maltese Central Bank and the NSO, the number of building permits issued for residential buildings fell by 24 per cent in the third quarter of 2011 compared with the same quarter of 2010.
The Times reports that ââ¬Ëthe Malta Developers Association last year said that permits for new dwellings had also plunged ââ¬â from 11,343 in 2007 to 4,444 last year.ââ¬â¢
ECB sources said: ââ¬ÅMaltaââ¬â¢s economy in general last year grew at a higher pace than the euro area. The significant drop in the building industry might also be a result of oversupply and a construction frenzy which took place in the past years. We have the same situation in Spain.ââ¬Â
Falls in property prices and a large stock of unsold property can offer excellent opportunities for buyers. Nick Marr from leading overseas property website Homes Go Fast said: ââ¬ÅThe situation in Malta is similar to other countries that experienced a ââ¬Ëbuilding boomââ¬â¢ over the last decade.
ââ¬ÅWith fewer buyers and a large stock of new homes, savvy Brits can snap up a real Maltese property bargain.ââ¬Â
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Author
Nick Marr
I am an internet entrepreneur with a passion for driving big audiences and a love for real estate. I have had plenty of ups and downs which has given me the experience to help others launch their own businesses. I enjoy projects that save consumers time and money, challenge convention and add real value to peoples lives.