Value of commercial property showing signs of recovery

The value of commercial property in Malta and Gozo is showing signs of recovery after its dip at the start of the pandemic, according to a new report.

The findings are part of a study by Djar, which tracks the price of property across the country, in collaboration with Ernst & Young.

According to the survey, the asking price per square metre of several commercial property types in Q3 of 2021 has increased compared to Q1 of 2020. These include shops (+3.3%), office space (+1.1%) and hotels (1.92%).

Meanwhile, the types of commercial property that registered a decrease were catering facilities (-0.94%), storage facilities (-2.56%) and showrooms (-1.79%).

In terms of location, the area with the cheapest commercial property is Gozo, where, for example, the cost of a shop is €2,034 per sqm, while that of office space is €1,354 per sqm.

Conversely, the Northern Harbour Region (Birkirkara, Gżira, Ħamrun, Msida, Pembroke, Pietà, Qormi, St Julian’s, San Ġwann, Santa Venera, Sliema, Swieqi and Ta’ Xbiex) is home to the most expensive commercial property in the country. A shop in this region costs €3,151 per sqm, while office space is €3,441 per sqm.

The commercial property rental market exhibits similar trends. For office spaces, which constitute the majority of commercial rent listings, annual asking rates per sqm range from a median of around €130/sqm in the Northern region to €240/sqm in the Northern Harbour region.

Turning to the residential market, the report states that property sales and rental prices have remained stable over the past two years. 

Average prices for all kinds of property in Gozo – including apartments. penthouses and maisonettes – increased in Q3 of this year, when compared to the same period in 2020. This was offset by a drop in prices in the Northern Harbour.

However, the same region saw an increase in residential rents. particularly for apartments and townhouses. Apartments there range from €850 monthly for one bedroom to €1,400 for three.