Rental rates have increased (on average) more than 17% in the monthly inflation breakdown. The assessment is the aftereffect of an analysis of how rental rates are determined in the Retail Price Index, combined with input from some of Malta’s top real estate stakeholders.
It has been perceived that inflation information doesn’t capture soaring rent costs for some time. Changes in rental prices like this affect public proportions of inflation, making sense of why inflation remained so low for such a long time, even as the rental rates of Malta multiplied.
Key Reasons Responsible for the High Rents
Malta is a destination hub for tourist and expats. Below are three of the main reasons why Malta has high rental rates.
Property rental costs
Although Malta’s high quality of life is globally famous, rental prices are still less expensive than in the rest of Europe. Notwithstanding, this agreeable way of life, when joined with better caliber, bigger, and unbelievably located properties, is now mainly available across Malta.
It is likewise contributing to a progressive ascent in rental costs to reflect demand. As of now, the typical rental cost for a comfortable two-room loft in a well-known central region is €800 to €900 each month. Meanwhile, property management is a big business in Malta.
Rise in the business sector
There is no compelling reason to deny that the impact of the gaming market on the Malta has been gigantic. As a prominent worldwide gaming center, Malta has invited various big-name gaming organizations to set up on the island. This is super-supporting the local economy and the reputation of Malta businesses on a worldwide scale.
Meanwhile, this new business blast influences the local rental market as the incoming foreign workers search for properties for lease/rent in Malta. This downpour of expats for the iGaming business continues to represent around 40% of the local rental market.
In 2019, the gaming sector’s ceaseless advancement in Malta will be matched by the upward direction of the financial services sector. This indicates a further expansion in the demand for rental properties for a more foreign talents.
Local people versus outsiders
Malta’s local populace has tended to buy property in Malta or Gozo rather than renting/leasing it. However, this trend is currently shown to change. As love birds today start their property search for their initial family home, for instance, their favored property might be out of their monetary reach in the short term; they will select to lease in the meantime.
While the number of locals choosing to start a property tenancy is rising, they are still far dwarfed by the number of renting/leasing foreign nationals representing about 90% of the local property investment market.
Conclusion
Malta is gradually becoming one of the most frequent islands in the Europe, attracting more expats. Several factors have been contributing to the recent high cost of rentals in the country. The business sector is a key factor. Finally, companies engaged in property management has increased. You can reach out to reputable property management company like Shortzzz.
