Are properties in Gozo still good value for money?
Are you browsing through the latest properties for sale in Gozo and wondering if it’s the right time to buy? Have to prices jumped too high? Is investing in real estate still worth the hassle?
Well, there is no easy way to answer all these questions, but here are a few things to consider before you make your mind. After all, buying a property is probably one of the most important financial decisions you will make in your life, so choose wisely.
It’s no secret that the property market in Malta and Gozo has been booming in the last 20 years. Some have gone even as far as saying the the island are over-build now. In reality, there is just not enough space and the strong demand from local people and foreigners, who are looking to invest or have immigrated to the islands for economic reasons, are pushing the prices higher and higher. They just don’t make any more land. In this part of the world anyway.
The strong rental market is an important factor which must be taken into consideration. If people were only buying properties to live in, the prices wouldn’t be as high as they are. Many people in Malta & Gozo own more than 2 properties and rental income makes up a substantial amount of their earnings. It has to be said that more and more young people are buying to rent. That leads us to another interesting point – Government initiatives.
In recent years, the Government has been creating different plans in order to aid first time and second time buyers. People purchasing their first home don’t have to pay stamp duty if the price is less than 150k. A similar scheme helps young, growing families and older people who are looking to up or downsize their properties depending on their current need.
The pro business measures taken by the Government, like tax cuts for iGaming companies, have had an effect on the property market too. With more and more young talent from European countries being attracted by the IT companies, there is more and more demand for rental properties. Of course, the price in places like Sliema and St Julians is affected a lot more, but the tide rises all boats and prices are on the up in Gozo too.
We can’t mention rising prices and not talk about the “cash-for-passport” scheme. With so many wealthy individuals, mainly from China, Russian and the Middle east investing in property as part of the scheme requirements which gives them easy access to an EU passport, it’s understandable why many expect a strong property market in the upcoming years.
There are even new designated areas and business projects like Smart City are scrapping plans for office buildings and converting them into residential ones instead in order to meet demand.
And Gozo is always going to be a place where Maltese people go for a long weekend. And rightly so! Why bother going to less hospitable and war torn places around the world when you can just jump on the ferry to your beautiful sister island and spend quality time with family and friends.
So in a nutshell, there is no sign of economic slow down and given all the factors above, property prices in both Malta and Gozo will most likely continue to go up. So don’t miss out. Regardless if you are looking for your first home, summer residence or real estate investment, there are properties on the island that will suit your requirements.