Maltese property prices rose 10.03% (8.53% inflation-adjusted) during the year to Q4 2015, according the Central Bank of Malta (CBM). During the latest quarter, property prices increased by 5.92% (8.86% inflation-adjusted) in Q4 2015.
The price hikes were felt across all property types:
- Apartments saw a 7.32% nominal price increase over the year to Q4 2015, or 5.85% when adjusted for inflation.
- Terrace houses had the highest price increase of 17.86% during the year to Q4 2015 (16.25% inflation-adjusted).
- Maisonettes also posted a double digit price rises of around 15.21% y-o-y in Q4 2015 (13.63% inflation-adjusted).
- "Other houses", consisting of townhouses, houses of character and villas, increased by 7.96% y-o-y in Q4 2015 (6.49% inflation-adjusted).
The central bank attributed the upward price trend partly to the government measures aiming to support property demand. This includes the Individual Investor Programme, introduced in the government’s November 2013 budget, which targets high net worth individuals.
Also, the stamp duty exemption for first-time buyers on the first €150,000 of a new property’s value has been extended again till December 31, 2016. The scheme saves first-time buyers up to €5,000 (US$ 5,606), and also applies to promise of sales signed from July 1, 2015. Buyers who have paid after July 1, 2015 (when the scheme was originally supposed to end) are still entitled to a full stamp duty refund.