South outperforms north in residential real estate

The residential property market of the towns and villages situated in Malta’s south-east continued to see brisk trade in April despite a slowdown registered in the south-west, while Gozo continued to register the highest levels of activity.

According to a new released issued by the National Statistics Office, the region consisting of Żabbar, Xgħajra, Żejtun, Birżebbuġa, Marsaskala and Marsaxlokk on Malta’s south-eastern coast saw 164 homes changes hands during April, up from 143 the previous month.

Moving westwards, Luqa, Gudja, Għaxaq, Kirkop, Imqabba, Qrendi, Safi, and Żurrieq registered only 75 final deeds of sale down, from 132 in March.

To the north, Mellieħa and St Paul’s Bay continued to be popular, with 122 residential properties being sold as compared to 111 a month prior, whereas Mosta and Naxxar registered only 63 sales, down from 81.

The area made up of Pembroke, St Julians, Sliema, Swieqi, and Għargħur saw the exact same number of properties sold during both months, at 117, while the Three Cities, plus Kalkara, had only 17 homes being sold in both March and April – the lowest level of activity in the country.

Gozo meanwhile registered 184 final deeds of sale in April (March: 185), continuing its reign as the hottest real market on the islands.

Nationally, the number of final deeds of sale relating to residential property amounted to 1,109 during April 2022, a decrease of 76 deeds, or 6.4 per cent, when compared to those registered a year earlier.

The value of these deeds totalled €233.0 million, 3.8 per cent lower than the corresponding value recorded in April 2021.

The local market continues to be dominated by individual buyers, as opposed to companies, with the former involved in 92.5 of all transactions accounting for 88.9 per cent of the total value.

Promise of sale agreements

In April 2022, 1,018 promise of sale agreements relating to residential property were registered, a decrease of 410 agreements (or 28.7 per cent) over the same period last year.

This decrease, Malta Developers Association president Michael Stivala said to BusinessNow.mt last week, was to be expected as the key incentives designed to prop up the property market during the COVID-19 pandemic came to an end last year.