If you’ve been on the lookout lately for property to rent in Malta, you’ve probably noticed a drastic rise in the prices of rentals in Malta. In fact, they continue to rise each day. Whether you are moving to Malta from a different part of the world or you live in Malta, it’s good to have a comprehensive understanding of what is causing this rental price rise in Malta and whether it’s going to continue. This information will be especially helpful if you are taking your time and trying to time the market to get in.
It’s undoubtedly true that the Maltese rental market is doing exceptional, but what you need to know as a tenant is why this is happening and whether it’s a good idea to rent in Malta right now and lock down your rate or sit out for a bit while the market cools down.
Reasons for Rental Price Increases
One of the main reasons for the rent increase is the growing economy that Malta is experiencing. Malta has been flourishing for some time economically, even in the face of global downturns a decade ago. Even in slow economic times, Malta continues to thrive and grow their value as a country. As such, it is becoming more affluent and costs more to live there as property owners see their estates rise in value.
Real Estate Boom
It is true that Malta is seeing vast economic growth, but the area that is benefiting most from this growth is the real estate market in Malta. As landlords see their properties rise in value, they are going to naturally charge more rent. You can expect to pay much more now than 10 years ago for a similar property because that property is worth so much more on the open market now.
Rising Wages / Falling Unemployment
As the economy and real estate markets boom, so does the job market. Malta is now filled with high-paid executives and affluent families. This has given a massive jolt to the job market and also means that the average Maltese citizen makes a lot more money and doesn’t have trouble finding work. The effect is that there is more competition for good housing and that drives the prices up a lot. Having a general population that is stable financially has done wonders for the Maltese economy.
Will It Continue?
If you are trying to time the market, you probably want to know if the rental price increase is going to continue. While we won’t say that it will continue to rise at a rate like this, there are no indicators that the Maltese economy and rental prices are going to slow down significantly. It’s terrible that you may have missed the best prices that Malta will ever see, but you aren’t taking a huge risk by renting now. Rental prices are unlikely to go down and more likely to stabilize, so if you want to get in on the Maltese rental market, now is a fine time to do so.