Malta’s Economic Growth Reaches an Impressive Scale
According to the Finance Minister of the Mediterranean island nation Malta, the country recorded an impressive €187 million growth in the first quarter of 2019. The economic growth of the country is spread across many sectors. These involve cultural, recreational and communications sectors. However, the real increase which have reached to double digits is in construction and real estate sectors.
Statistics about the Country’s Economic Growth
The positive figures reflect that Malta’s wholesale and retail trade sectors that grew 5% in the first quarter of 2019 along with a 3.5% growth in the gross value added increase in the manufacturing sector. The Finance Minister also explained that during this period, the economy was understood to be among Europe’s key performing economies, managing to hit 4.9%. The GDP managed to hit 7.4% in nominal terms. Along the same lines, the year on year average growth rate was registered at 1.2% in the Euro Area and 1.5% in the EU28.
Much of the main drivers of economic growth in this period were identified to come from domestic demand, while major projects like the infrastructure developments reflect high growth. The infrastructure developments are registering €100 million a year, the Ministry explains.
Real Estate Sector is Impressive in Malta
Over the past few years, Malta performed an amazing growth in its real estate sector. According to the Knight Frank Global House Price Index, in the second quarter of 2018, Malta’s real estate prices increased (16.9% on a 12-months basis, over the year before) by more than anywhere else in the world.
According to the same index of Knight Frank, Malta came in third at the end of 2016 and a respectable 20th at the end of 2015. This index clearly shows the positive consistent trend of Malta’s real estate market growth. Therefore, the index proves that Malta is one of the best places to invest in throughout Europe.
There are no particular storm clouds on Malta’s economic horizon. The economy will probably continue to grow, regulation will be steady and the stable banking sector will continue to provide property loans in Malta.
In terms of the real estate outlook that means:
- Malta’s real estate prices will continue to appreciate, even if they pull back from the world-leading 17% territory.
- If the real estate price index doesn’t cool, the government will probably have to act, at least to support the section of the population who will be priced out of the ownership market and see their rents increase.
- Companies registering in Malta are already showing a willingness to locate outside of Valletta and that might help spread the real estate price increases out to other areas of Malta.
Long story short, because of its politically and economically stable atmosphere, Malta always stands out as an important option for investments, and the country’s 2019 real estate outlook supports this outcome, too.