The Guide to Property 2017

The Guide to Property 2017 residence | investment | lifestyle

www.dhalia.com

The Guide to Property 2017 is a property magazine published by Dhalia Real Estate Services. It is published annually and distributed through Dhalia’s local branches and collaborator network.

Coordination and Design Chris Bonett Francelle Camilleri Camille Felice

Editorial Consultants Jo Caruana Iggy Fenech writemeanything

Photography Tonio Lombardi Articles appearing in this publication do not necessarily reflect the views of Dhalia Real Estate Services. All rights reserved. Reproduction in whole or in part without written permission of the publishers is strictly prohibited.

For further information please contact

Dhalia Real Estate Services Cobalt House, First Floor, Notabile Road, Mriehel, BKR 3000, Malta.

Tel. +356 21490681 Email: info@dhalia.com

www.dhalia.com All reasonable care has been taken to ensure the truth and accuracy of the articles within this publication. The publisher cannot be held responsible for errors or omissions in articles, photographs and illustrations.

inside

The Guide to Property | 2017

aboutdhalia

letting

4.

6.

7.

8.

10.

14.

16.

18.

42.

44.

45.

46.

A Few Words from the Executive Chairman Malta’s Property Market 2016 Analysis and the Year Ahead Recruiting the Best Consultants

The Renting process Renting: Dos and Don’ts Trending Locations

The Role of the Property Consultant Consultant Spotlight

investment

What’s the Value of my Property?

48. Investing in Property 49. Investing in the Rental Market

Dhalia Through the Years

buyingproperty 22. Buying your First Property 24. Purchasing Property: Dos and Don’ts 25. Property Investment: Passing on Wealth

Letting out your property

to your Children

26. Trending Locations 28. Buying on Plan: Risks & Rewards 29. On Trend Locations for Family Living

casestudy 50. The First-Time Buyer’s Experience 52. The Buy-For-Rent Investor’s Experience

facts&figures 54. Number Crunching: The Maltese Property Market 56. Malta in Figures

foreignbuyers

glossary

30.

32.

34.

36.

38.

40.

57. Real Estate Vocabulary Explained

Buying a Holiday Home in Malta Why do Foreigners Buy in Malta?

Residency Schemes Prime Locations for Foreign Buyers Luxury Property Luxury Living

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aboutdhalia

4

A few words from the Executive Chairman When Dhalia Real Estate Services began, 35 years ago, the property market was a completely different world. The rental market - which today is so strong - was almost non-existent. Shell properties and plots were far more common than finished homes. Today, properties are often sold finished, shell-form properties are less common, and the rental market is massive. Foreign buyers are ever more keen on making our beautiful islands their home, as Malta remains a desirable location for those looking to purchase international property.

Dhalia itself has changed - we have grown and adapted to the needs of a changing property market. This year we are integrating new technology that will make our processes more efficient, and also giving the company a fresh, modernised logo to reflect our status as a company that has moved with the times.

Our state of the art training programme is a testament to our continued investment and dedication to training our consultants. We also continue to invest in technology such as virtual reality and software to enhance efficiency because we believe that this kind of innovation is the future of our business.

We are presenting this annual publication as part of our commitment to continually bring innovation to the local market, while adding value to the professional service we offer our clients. We believe in providing valuable quality content that answers our clients’ questions. Although some may say that print is dead, we believe that it is very much alive.

Dhalia has regularly taken on the challenge of producing quality content in the form of an information-rich publication as we have done consistently over the past 3 decades.

I would like to leave you with a little gem extracted from one of the first editions of the Property Pages. Published 27 years ago, this unbelievably accurate prediction was made:

“Dhalia believes it can sustain its momentum by continuing to emphasise the traditional qualities of professionalism and customer care by combining such attributes with creativity and the courage to pursue new market opportunities. Given its track record, the Dhalia Group of Companies will remain a strong and impressive force in the real estate industry for decades to come.�

Christopher Grech

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aboutdhalia

Malta’s Property Market There has never been a better time to invest in a property in Malta.

When the financial crisis of 2007-2008 hit the global market, Malta’s economy remained surprisingly stable; as did its property market. This, indubitably, has helped pave the way for the unprecedented boom the market is experiencing today. Fueled by an ever-increasing demand from both locals and foreigners – and particularly from investors, developers and iGaming executives – the letting, development and sales markets have flourished over the past five years, with certain areas seeing an increase in price of almost 30 per cent.

Property is also selling faster than ever before, and the country has seen a rise in the number of properties being rented out. Indeed, with more units being built than ever before, and some of the island’s biggest property projects ever now in the pipeline, there has never been a better time to invest in property on the sunny island of Malta.

Nevertheless, although the market is incredibly strong, it would probably be unhealthy for it to continue growing at this rate, as it is becoming increasingly harder for first time-buyers to get on the property ladder. This has mostly been due to the fact that the market’s focus has shifted from first time-buyers to investors; yet the rise Alan Grima Chief Executive Officer Dhalia Corporate

in prices has recently led the Government to state that should the market not regularise itself, it would have to step in to keep the prices of property – and particularly the letting of property – in check.

algri@dhalia.com

Even so, the projections for the next few years are still incredibly good. With the letting market being so strong, many people are buying property to let, rather than keeping their money in the bank. And, while the Government stepping in would change the game completely, that would probably boost the sales market, as Malta’s size restricts development zones, meaning that property on the island is highly unlikely to ever outstrip demand.

As things stand, Malta’s property market remains a very safe investment for both local and foreign investors, with property prices still being affordable to most. Moreover, as Malta continues to expand its business portfolio with big names in iGaming, pharmaceuticals and aviation choosing to be based here, it is relatively safe to assume that the property market’s boom will not slow down anytime soon.

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2016 Analysis

& the Year Ahead Having boomed in 2016, the property market is set for another stellar year!

The Maltese property market has gone from strength

at a much slower pace up to seven years ago, the

to strength for the past couple of years, with 2016

market here has grown by an average of 6 per cent.

being one of its best. In fact, from an estate agency perspective, Dhalia experienced an increase in the

“Also, areas like Gwardamanga, which are often

number of sales and enquiries it received each

overlooked, have now benefitted from the renovation of

and every month, when compared to 2015.

the old St Luke’s Hospital into a rehabilitation centre, with particular developments built in the area managing to

In 2016 strong sales increases were registered

sell-out in practically no time at all,” Mr Grima continues.

across the board when compared to the previous year, and the number of people the company

At the time of writing, returns on property across

employed increased by almost 50 per cent, which

Malta are in the region of 7-9 per cent on buying and

shows the rate at which the property market is

selling; while rent prices have continued to go up too,

growing. Moreover, while most of those employees

as demand is currently only just about meeting supply.

currently focus on sales, even the rental market has

These patterns are set to continue well into 2017, and

experienced one of its biggest growths in years.

the first quarter of the year has already seen growth akin or, in certain cases, higher, than that of 2016.

“This exponential rate of increase in the size of the market is down to the good vibe within the

On the other side of the channel, Gozo is also

country as a whole and within the market,” says

experiencing an increase both in sales as well

Alan Grima, Dhalia’s CEO. “First-time buyers were

as the number of enquires for property when

enticed by the government’s incentive to pay

compared to two years ago. In fact, 2017 will

less tax upon the final contract, and buy-to-rent

definitely be a great time for locals looking to buy

investors could see a definite improvement in the

a summer home or for foreigners looking to retire

quality of the property delivered by developers and

on Malta’s greener and more rural sister island.

in the number of enquiries for their property.”

As it stands, the property market in Malta is set With numerous rehabilitation and construction

to continue growing at a fast-yet-stable rate, so

projects taking place at the moment, certain areas

there’s never really been a better time to invest

that had previously been ignored by buyers, such

in property in Europe’s sunniest country!

as Marsascala and Fgura in the south, have also experienced increases. Whereas property here shifted

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aboutdhalia

Recruiting the best consultants Dhalia is one of the leading Real Estate companies in Malta that is actively investing in its dynamic and growing team.

Having opened 3 new offices in 2016 with plans for more in 2017, recruitment is a big deal. To find out more about Dhalia’s recruitment strategy we spoke to David Dingli, Human Resources Executive, to get the details on how to recruit the right people for another 35 years of success.

“Everything about our recruitment process demonstrates a genuine David Dingli Human Resources Executive Dhalia Corporate hr@dhalia.com

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interest in each and every candidate we meet - as a real person, not just an applicant. We are interested in our potential agents’ hobbies and interests. We don’t want them to look at work as separate from their lives; it’s got to be a very big part of what makes life worth living.”

Dhalia’s selection process Some may think that absolutely anyone can become an estate agent, but this is not the case. Dhalia is selective at its recruitment stage – we are looking for people who have the right characteristics to represent the brand with integrity, even if they have never done this work before. The selection process tests for sales motivation, teamwork, and likelihood to get along with others.

Dhalia believes in character first and skills as a secondary factor, because skills can be taught, but an individual’s personality can’t be changed.

At the heart of Dhalia’s recruitment strategy is a culture of support and individual attention. While monitoring recruits’ progress closely for their first 8 weeks of work, the human resources department and the management team offers all the support they may need.

What should you know beforehand?

Those considering the real estate business must understand that it is not just a job but a business. Venturing into real estate is one of the most cost effective businesses that one can enter - with low overhead, no inventory costs, and no debt accumulation if done correctly.

Starting any business is hard work and that is why very few agents globally have developed truly successful and thriving businesses.

Retaining talent The recruitment process doesn’t

Taking the leap

stop once a new person joins the

There’s no denying it, it takes great courage to move from a fixed salary to a

team. Retention is a huge part

‘no-salary’ situation with a potentially high income. When thinking about joining

of Dhalia’s ongoing relationship

the world of real estate, a person must ask him or herself one question. Will I

with their consultants.

succumb to the fear of the unknown, or take the entrepreneurial leap? Those who take the chance can find the rewards are greater than they imagined.

These days, people no longer expect to stay in one position for the

What do potential recruits look for in a real estate agency?

duration of their lifetime, so Dhalia

It is easy to assume that the most important factor is money - how much

devotes substantial resources to

money can be made in commission. What may come as a surprise is that other

constantly improving conditions,

work satisfaction factors are ranked much higher by Dhalia’s agents - these

making processes more efficient

being reputation, culture, leadership, training, and technology. The more

to provide the best workplace

discerning potential recruit will recognise that the infrastructure in place to

possible.The primary reason

help them market their properties and close on deals is of utmost importance.

behind the loss of an agent is a

When joining Dhalia, a recruit will enjoy coaching, the latest technology,

feeling of being unappreciated or

advertising budgets, corporate marketing and a very well-known and trusted

abandoned. Dhalia doesn’t fall into

brand name. “Compensation is only part of the equation,” says David Dingli.

these traps. The human resources

“We emphasise the excellent team spirit and great work environment when

department remains involved by

recruiting new talent. Before we mention tools or commissions to a candidate,

providing training and guidance.

we describe the philosophies that drive us. We all know that this in an industry

“We keep asking ourselves,”

rich with options, so what’s special about working with Dhalia? We believe

says David Dingli, “‘how can we

that the package we offer is highly competitive, however it’s only when you

improve the lives of our agents?’

focus on your company’s unique environment and opportunities that you can have productive conversations — even when it comes to money.”

We share ideas through our award program, training, coaching and

Regulation

one-on-one appraisals. We involve

As it stands, we work in a highly competitive industry in Malta. Due to the

our agents in community activities,

fact that it is still unregulated it is easy for anyone to call themselves a real

team-building, mentorship,

estate agent. Upcoming legislation should regulate the industry making it

and engage in regular

a safe place for everyone, especially inexperienced buyers and sellers.

communication with them.”

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aboutdhalia

The Role of the Property Consultant The role of the property agent may seem straightforward at first, but there is more to it than meets the eye.

Those who are outside the industry may wonder what it’s like to be a real estate consultant. Some may harbour the misconception that it’s not a difficult job and that anyone can do it, however this is a deep misunderstanding of the responsibilities and duties of a property agent.

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A broad definition of the role is that a sales or letting agent helps clients buy, sell, and rent properties. Representing either the buyer or the seller, or the landlord or tenant in a transaction, the property agent’s responsibilities are divided between client time, marketing activities, and keeping up to date with the market.

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aboutdhalia

Top skills of a property consultant Business skills

Interpersonal skills

Organisational skills

Communication

Client Time The relationship between a consultant and his client is at the

familiar with the needs and

how to present their property for

heart of the business. Through

limitations of the client in order to

sale or lease, the agent must also

good communication, trust, and a

match them with the right property.

provide feedback after each and

thorough understanding of what the

Many clients are unfamiliar with the

every viewing. Property agents

client requires, an agent can form

property market, so they need to

keep owners informed of the

a long-lasting client relationship.

be informed on what the process

result of viewings and find new

This kind of relationship often

involves, whether they are buying,

ways to market the property.

goes beyond the transaction, for

selling, or renting property.

Negotiation is another key task

a lifelong link between agent and

While accompanying buyers and

performed by the consultant,

client. Dhalia’s top consultants

tenants on viewings, the agent

whether on the behalf of the buyer,

think fondly of their clients, many of

must advise them of the suitability

seller, landlord, or tenant. Dhalia

whom have returned time and time

and value of the property. Buyers

consultants are given extensive

again to receive top quality services

and tenants will need guidance

training on negotiation skills as well

at different stages of their lives.

to compare a property with

as hands-on experience with their

Client-facing work will test the

similar properties in terms of

managers. While assisting the parties

agent’s communication skills.

price, size, and other details.

in coming to an agreement, Dhalia

To start with, the agent becomes

Apart from advising sellers on

agents will always behave ethically.

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Characteristics of successful agents Confidence Multitasking

Ambition Use of technology

Market knowledge Property consultants must be knowledgeable about the real estate market in their area, which means knowing about the latest developments and government initiatives. To match properties with the client’s needs, they must be familiar with local communities, including knowledge about proximity to schools and shopping, parking, noise levels and similar details.

Agents must also remain current on financing options, government programmes, types of mortgage, and housing and zoning laws.

Buyers and sellers who are entering the market for the first time undoubtedly require the most guidance. There are several important details that many are not aware of, for example that the seller must provide an Energy Performance Certificate (EPC) to the buyer. Other fine points include what permits are valid on the property, and whether the property is located in an

Marketing yourself

Urban Conservation Area (UCA) or not. Although these specifications may

As a self-employed person, the

seem complicated, the property consultant deals with them on a daily basis,

real estate agent must develop

so there is nobody better suited to explaining them to clients. Successful

their own network of contacts.

property consultants will be able to bring together their technical knowledge

Developers, architects, notaries and

about the property market and their customer service skills. The property

contractors are useful contacts who

consultant occupies a broad role with many specialist services included, and

can refer clients and also to whom

when performed with passion and dedication can yield incredible rewards.

clients canbe referred.

Knowledge of sales and marketing techniques are indispensable when it comes to showing, promoting and selling property. Experience in sales strategy and tactics, prospecting for new clients, and familiarity with sales techniques are all highly useful in the real estate business.

Those who come to Dhalia with these skills often pick up the trade quickly, however experience is not paramount to becoming a successful property consultant.

In fact, many individuals join our team with no prior experience in the business and develop their skills through our extensive training programme and hands-on coaching from our managers.

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aboutdhalia

Consultant Spotlight Louiselle Briffa What made you decide to work in real estate?

I was originally looking for a position in marketing as I was reading for my higher diploma in Sales and Marketing at the time. I wanted a job that had direct contact with the customers, and I was always passionate about homes and interior design so this job fit perfectly with what I enjoy doing most.

What was your best sales experience so far?

I’ve had so many good experiences because every transaction helps you build more knowledge and experience. My absolute best experience was my first sale - a plot of land which I managed to close on my own. That was the start of my career in real estate.

What’s the biggest misconception about property consultants?

People think that our job is easy since we are our own boss and have a flexible schedule. In truth, the life of a dedicated property consultant is not an easy one, especially when you are a parent and have a family.

The work doesn’t stop when we go home, it’s not an 8 hour job but a BIO/ Louiselle Briffa Property Consultant, Dhalia Marsaskala lobri@dhalia.com

24/7 commitment, be it a weekday, a weekend or a public holiday.

What are the characteristics that a good property consultant should possess?

A good property consultant should keep updated, be professional, and be a

33 years old

good listener. It is important to get to know what type of client you have in

Loves to spend time with family

front of you, since all our customers have different characteristics. Having

Working with Dhalia for 4 years

good listening skills encourages your customer to speak more deliberately, sharing more information and making the buying process simpler.

What do you listen to in the car on the way to an appointment?

Nothing! If the client is not with me in my car, I don’t want to be disturbed by music or anything else. I want to be fully concentrated and focused.

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Consultant Spotlight Fabien Debono What made you decide to work in real estate?

I was taking a gap year when a family friend suggested I try the field of real estate. I was hesitant, at just 18 years of age who would take me seriously? However Dhalia must have seen the potential to develop my natural charisma into a flair for real estate, and I’ve never looked back.

Where do you see yourself in 5 years?

Exactly where I am! I’m lucky enough to have found a job that I love with a passion. I can see myself in a managerial position with Dhalia, but

that’s a thought for the future - right now I still have tons of energy to buzz around the place.

What was your best sales experience so far?

At the age of 20 I had just closed my biggest sale ever - it was a plot of land worth LM1.5 million. The buyer was a modest looking man, a farmer by trade; the sellers were doubtful that he could afford to pay the deposit on the property. This man surprised us all by paying not only the deposit BIO/ Fabien Debono Property Consultant,

but the whole sum there and then, in cash! That day I spent a good few

Dhalia St Julian’s fadeb@dhalia.com

What’s the biggest misconception about property consultants?

hours sorting wads of crumpled banknotes into piles to count it all out.

29 years old

People sometimes think that by avoiding property consultants

Loves to travel and keep fit

they can end up saving money, but this is not often the case!

Working with Dhalia for 10 years

If you weren’t in the property business, what would you be doing?

I doubt that I would be working in a different field, but I would love to study architecture.

What do you listen to in the car on the way to an appointment?

Sometimes I listen to my music playlist which includes Kings of Leon, Oasis and Bob Dylan, but other times I tend to switch off the radio and take advantage of the silence to clear my head and focus on the task ahead.

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aboutdhalia

What’s the value of my property?

This question is asked by all property owners at different stages of their lives.

We spoke to Dhalia manager Michael Mifsud who has been providing valuations for 25 years to get his advice on the topic.

An accurate valuation takes time Clients sometimes expect the property consultant to give then a valuation there and then. However, there are cases where this is not possible: for example a property in a new street, or a property subject to strict zoning regulation. A good consultant will not rush to provide a valuation if they feel they need more time.

Market research Dhalia consultants have the resources at their disposal to conduct a Michael Mifsud Branch Manager Dhalia St Julian’s mimif@dhalia.com

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thorough analysis of the market. They will analyse the value of similar properties in the area, looking at the size and potential use of the property, as well as the level of demand for such properties in

order to come to a market value.

Teamwork Valuation In some cases, Dhalia consultants prefer to take a little time and discuss a valuation with a senior property consultant or a manager. This teamwork mentality allows consultants to benefit from the experience property experts with decades of hands-on practice in the field.

The customer is always right… right?

All property agents find themselves in a position once in a while where the client insists on a particular price, even if the market research suggests a lower price. In these cases the agent will always act on behalf of their client when searching for buyers, but often the buyer is aware of what should be the right price. This usually leads to a longer time on the market, and will eventually result in an equilibrium where the price is lowered towards the market value.

A true market value In certain areas the value of a property can be determined exactly, for example an apartment in a major development within a prominent location is presently valued at €6000-7000 per square metre. Such an accurate valuation can be determined because there is a very detailed record of selling prices for that area. This valuation will of course depend on the interior finishing, total square meters, the location within the project, and the floor.

Exceptional properties Unique upmarket properties are the most difficult to value. This is because their unusual features put them in a league of their own where comparison with similar properties is not possible. However owners of upmarket properties shouldn’t worry - Dhalia’s Luxury Living team is composed of luxury property specialists who have been trained to provide valuations for exceptional properties.

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aboutdhalia

Dhalia through the years

1986

1990

Dhalia Group pursued a wide range of development activities including farmhouse conversions, commercial premises and larger multi-unit turnkey projects.

In what must have been one of their major ambitions from the beginning, Chris and Mark acquired the estate agency business of Grech Alexander from their father in 1990.

1995 A negotiator’s handbook was introduced to guide Dhalia’s agents in how to conduct business and inform them of the values of the company.

1987 Dhalia Group opened 6 regional offices (in Gozo, Marsaskala, St Julian’s, Balzan, and Northern Malta) employing a total of 40 specialist support staff

1982 Christopher and Mark Grech established Dhalia Investments Limited, a small estate agency, employing two staff.

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1991 Dhalia launched the Property Pages, a property magazine showcasing the very best of the company’s portfolio in terms of residential, commercial and letting properties.

REAL ESTATE AGENTS

1997 Dhalia’s logo changed from dark blue to black and gold

Dhalia made its first appearance on the World Wide Web in 1997, located at www.digigate.com/ dhalia. The web page contained information on the company and its services, as well as how to buy property in Malta. Malta’s first online property database was created with a few hundred property listings displaying penthouses, bungalows, farmhouses and maisonettes.

2000 Dhalia launched its biggest project to date: the Bay Street Complex in St George’s Bay, St. Julian’s.

As the first development of its kind in Malta, the complex was set up as a venue for family entertainment and centre for culture and the arts

2003

www.dhalia.com

1998

2002

www.dhalia.com was officially launched allowing early web users to access real estate services online.

Dhalia celebrated its 20th Anniversary

Dhalia website revamped to include a database of 15,000 properties and a fully integrated search engine, as well as links to local banks and Dhalia’s overseas partners.

Dhalia extended its overseas network through strategic partners in the UK and Ireland, as well as Central Europe.

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aboutdhalia

2005 Dhalia Real Estate was given a five-star award and voted Best Real Estate Agency in Malta at the 2005 edition of the Bentley International Property Awards. In the International property world these annual awards are equivalent to film Oscars.

2009 2009 saw the completion of the Balkan Jewel after 2 years of work. The project consisted of 160 spacious apartments finished and furnished to high standards and complemented by all other amenities expected of a holiday complex.

Features include a restaurant, mini-market, lobby bar, fitness centre and spa, outdoor heated swimming pool and conference facilities.

Luxury Living

by Dhalia

2004

2008

2011

Dhalia started its luxury property brand Luxury Living, with the tag line “Good enough is not enough”. Luxury Living was based in Portomaso and provided independent advice to buyers and sellers of upmarket property within the Maltese Islands.

Dhalia’s magazine, the Property Pages, was renamed Places - a quarterly magazine distributed with the Sunday Times of Malta.

Dhalia launched the first iPhone property app to help its customers quickly find property within their immediate location, through a geolocated search. The app provided customers with a new interface to access the company’s extensive database of properties in a simple, interactive way.

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Rabat

Over 150 employees in 20 Offices all over the Maltese Islands

Xemxija St Paul’s Bay St Julian’s

2012 Dhalia’s TV series for home buyers, D House, was produced by Dhalia Real Estate Services, and presented by TV personality Clare Agius, D House aired on One TV and followed couples and individuals as they searched for a new home.

Mosta

The Strand Naxxar San Gwann

Sliema Tignè Valletta Cospicua

2016

Gwardamanga

Attard Mriehel

In April of 2015, Dhalia LED began as a part of the company’s commitment to sustainability, and to bring energy efficient lighting to the Maltese mark

Fgura

Marsaskala

celebrating

2015 In 2015, Dhalia became a major sponsor of V18, promoting Valletta as the European Capital of Culture in 2018

3D technology became a part of Dhalia’s marketing tools in May 2015, providing an immersive digital model of home interiors, together with detailed measurements of the property as well as an automatically generated floor-plan, for a complete understanding of the property’s layout.

years

2017 The history of Dhalia is completed up to this very moment, as look back on what has brought us here together at this very moment. Dhalia celebrated its 35th birthday in the best company it could wish for.

Congratulations for making Dhalia successful, and here’s to another 35 years!

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buyingproperty

Buying your First Property If you’re a first time buyer, then you’re likely to have all sorts of questions about jumping on the property ladder.

Here, Konrad Sultana, manager of our Marsascala branch, answers a few of them.

How do I figure out what I want or need from my first property?

As a first time buyer you may have all sorts of ideas about the property that you’d like to buy – but you have to understand that they might not be realistic. Start by listing down all the things that are most important to you, including ideal locations, number of bedrooms and other facilities, and then head to the bank to see how much money you can borrow.

How much money will the bank lend me?

That completely depends on your income and the size of the deposit you Konrad Sultana Branch Manager Dhalia Marsaskala kosul@dhalia.com

have managed to save – but it’s very important to know this information before you get started! Book an appointment with your bank and take along all the necessary paper work, including past tax statements or payslips, and your work contract. The bank will be able to guide you as to how much money you can realistically borrow.

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What is the buying process really like?

Understanding what you’re getting yourself into is an important step, and it really starts with finding the property you want to buy. Once you have done that, you can commit to buying it by signing the konvenju (or promise of sale) and paying your deposit to the current owner.

Part of that contract will stipulate the length of your promise of sale – which usually varies between three months and a year. Within that time both you and the owner will have responsibilities – you will have to secure the money needed in full, while the owner will need to finish the property according to the specifications in the agreement.

Once the promise of sale comes to an end and both parties have fulfilled their obligations, the money will be paid and the keys handed over. The property is then yours!

How can an estate agent help me get the best deal?

Will I need to hire any other professionals?

When you’re buying a property, your

the process. The notary will help you to carry out searches on the

estate agent can help to negotiate

property and to ensure that it is rightfully owned by the seller.

various elements, and that isn’t just

The architect, meanwhile, will check the structure of the property

about price. He or she will discuss

to ensure there are no problems with it.

Yes, a notary and an architect, both of whom will help you through

the conditions of the purchase, the in the purchase, the timeframes

What is the most important piece of advice you would give a first time buyer?

involved, and what happens if one

Don’t feel pushed into anything. Ensure that you’re working with people

of the parties defaults on the works

you can trust, and that you feel safe and secure in your decisions at

or payment. Essentially, the estate

every stage. Buying your first property will be one of the most important

agent will help to ensure everything

decisions you make, and you should know exactly what you’re getting into

is clear upfront so that both you and

and feel comfortable with it. Speak to family and trusted friends about

the seller agree on all the terms.

your options as you go along.

deposit amount, what’s included

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buyingproperty

Purchasing Property: Dos & Don’ts Here’s a quick run down of the things to do – and not do – when buying a property, courtesy of our Marsascala branch manager Konrad Sultana.

Do share information. The more we know about what you’re looking for, the better we can help you find it.

When you’re looking at properties, do respect the fact that this is someone’s home. Understand that they are likely to be house-proud, so do ask permission before

Don’t leave anything unsaid. If you need something to be

taking a second tour or asking to see a particular space

part of your contract, then it needs to be agreed upon

again. If you want more details, it’s best to ask your estate

and stipulated upfront, otherwise it may not be possible.

agent rather than to speak to the homeowner directly.

Do go to a reputable estate agent. It’s vital to work with people you know you can trust and who will give you information that is realistic.

If you’re buying from a developer, do visit one of their previous projects to check the standard and

Selling your home and expecting viewers?

Here are some top tips!

quality of their work, including the common parts, lift and finishes. This will give you an idea of what to

It can be challenging having viewers traipse

expect from your own property in the future.

through your home, but remember this is all part of the process if you want to sell your property!

Do get advice from your bank well in advance.

Don’t take risks with regards to what MEPA will and won’t

it does need to feel welcoming, so open all

allow you to do – check with your architect in advance.

the curtains to make the space brighter and

The place doesn’t need to be spotless, but

remove as much clutter as you can to make it

Do speak to your notary when it comes to legal issues.

feel larger. This will also make it easier for the viewer to imagine themselves living there.

Do trust your estate agent when it comes to their evaluation of a property and its value. This is where their

Keep noise to a minimum (so turn off the TV or

knowledge can really help you to make the right decision.

radio) and, if you have pets, we suggest keeping the out of the way until you can ask whether the

Do follow your heart when it comes to choosing

viewer is comfortable around animals or not.

the property you fall in love with. Yes, advice from family and friends is important, but you

If possible, we recommend that you leave the estate

have to be happy with it first and foremost.

agent and viewers to it, so that they can explore at their will and get a real feel for the place. If they have any questions, the estate agent will be able to pass them onto you at the end of the visit.

24

Property Investment: Passing On Wealth to Your Children What are the advantages of passing your wealth on to your children in the form of property?

Meanwhile, if you choose invest in a development

Passing on wealth to our children is quite a bitter-sweet

piece of property. Returns on development are

concept. On the one hand, it is important to think of our

considerable, and can be used to reinvest or serve

children’s future and to know they will have something

as a crucial cash-injection for other projects.

project, say a piece of land, then the returns could be even more substantial than those from a single

to help boost their standard of living even when we are no longer here. On the other, that also means having

What’s important to keep in mind is that when you

to make sacrifices during our own lifetime in order to

purchase a property as an investment, that investment

make the right investment.

must be made with the return on the capital in mind.

So a one-bedroom, sea-view apartment in Gzira may be

Why is property a good way to pass on wealth?

more lucrative than a villa in the countryside. This is, of

With that in mind, property can provide a great way

and an estate agent is the best person to help you

of ensuring you reap the benefits of your investment

make the right decision.

course, worked out on a property-by-property basis,

during your lifetime too. For starters, while gold (as an although its price rarely goes down, gold is something

Are there any taxes my heirs will have to pay?

that cannot be rented out. Property is, and experts

In Malta, when someone inherits a property, he or she

estimate that you get five-to-six per cent of your

will have to pay succession tax based on its value. That

initial investment back per annum.

value is determined by the heir(s), so it makes sense to

alternative investment) may be seen as a worthwhile, and

give the proper market value of the property at the time Moreover, unlike art, which has a market value that

of inheritance (guided by an architect and an estate

depends on trends, fashions and how much someone

agent). If it is discovered that the heirs have not given

is willing to pay for it, property is almost always sure

the correct market value at the time of inheritance,

to appreciate in value. In Malta, in fact, over the past 15

an additional 12 per cent is added to the difference in

years, the price of property has gone up by roughly five

price. People who inherit a property they live in, and

per cent per annum, with property in Sliema, St Julian’s

which is their sole property, are exempt from paying

and the surrounding regions going up by 10 per cent.

any tax upon inheritance. Ultimately, property helps broaden your investment portfolio, gives you tangible

Why is property a worthwhile investment for me?

returns from the start, and has the potential to

While property requires a considerable investment

information on the latest available investments.

appreciate in value. Speak to us for up-to-the-minute

upfront, it is a foolproof way of ensuring that your investment is returned to you regularly and, more often than not, at a premium. On the flipside, money in itself actually tends to depreciate in value due to inflation and higher standards-of-living.

25

buyingproperty

Trending Locations With property in Malta at its most in-demand state ever, local buyers are more likely to be driven by the type of property they want and getting the most for their money, rather than choosing a trending location.

“In fact, when it comes to trends among Maltese buyers, I’d say the most prevalent is the request for small houses with lots of outdoor space,” explains our St Julian’s manager Michael Mifsud.

“People have realised that they no longer want a large dining room or separate sitting room just for entertaining, but would prefer to have more space outside instead.”

26

Nevertheless, some locations do stand

The South The Three Cities have been trending for a while now, although it has become almost impossible to secure anywhere on the seafront here. Internally,

out and are on the

on the other hand, there are lovely properties up for sale, which can be

rise – largely because

a good option because there are many beautiful properties in the area –

they provide good

Ghaxaq, Qrendi and Mqabba – all of which have shed the stigma they may

options when it comes to getting a goodsized property at a reasonable price.

converted into welcoming one-or-two bedroomed homes. Zejtun is also many with large gardens or adjacent fields. Other similar locations include have had in the past, and which have become very popular places to live with good connections to other parts of the south and the centre.

The Centre It’s definitely getting harder to find bargains in the centre, but certain spots do have potential. As a result of rising costs, Birkirkara and Qormi are two of the trending locations in the region, and you can definitely get more for your money here than, say, in Naxxar or the Three Villages. Other spots worth considering include Sta Venera, Hamrun and Rabat in-land, and the

Msida and Pieta seafront.

The North Mellieha has been popular for some time now and is still holding its own among Maltese buyers. Nearby Manikata has also been cast into the spotlight as there’s room for development here and MEPA is issuing permits in the area.

Gozo The Government recently introduced a reduced 2.5% stamp duty for purchases in Gozo, which has helped to make them more affordable.

As a result, some Maltese are considering properties here, although the connection difficulties still make it very hard for Maltese to commute daily from the island for work on the mainland.

27

buyingproperty

Buying on Plan: Risks & Rewards Of course, buying on plan isn’t ideal if you need to move in urgently but, if time is on your side, then you could end up with much more for your money – and even get a property that is customised during the building and finishing stages to perfectly suit your requirements.

Risks When Buying on Plan: When you’re buying on plan you obviously can’t see how things will be finished, so you will have to trust the developer’s portfolio and past record. It’s vital to look into who they are and their past work, so that you can get a good idea of the sort of properties they produce and what to expect from yours. Similarly, there could be hold ups in the process – perhaps due to delays from MEPA or issues in the building process . This is something you will have to bear in mind and prepare for.

Right now, across Malta and Gozo, an

Aside from that, there’s also a risk that things could

unprecedented number of properties

the property anymore by the time it’s done. That said,

are being sold on plan. This is largely because demand outweighs supply,

change from your end and that you won’t want or need you will have the opportunity to sell it – possibly for a profit! – if you decide to opt for something else.

Rewards When Buying on Plan:

so developers can’t keep up with

When you’re buying on plan you can finish your home

the number of properties that are

options when it comes to wall colours, floor tiles and

being requested each month.

to your tastes, as developers will usually give you even the design of your bathroom. You could even make small alternations to the plan of the property at no extra cost, perhaps by turning one bedroom into a

“Buying on plan certainly has its benefits,” says our

walk-in wardrobe, for instance.

Marsascala branch manager Konrad Sultana. “In the past, it was a way to secure a property cheaper

Price, of course, is another reward. Although you won’t

than you would if you bought it when it was ready.

technically be getting a lower price when buying an

But, these days, it’s simply an opportunity to get it

on-plan property, you can be safe in the knowledge

at a good price – a price that would doubtlessly go

that your home is already accruing value, even while

up if you waited until it was complete. In fact, just six

it’s being built. Some of our clients who have bought

months after buying on plan, you can now expect a

on plan have sold their property when it was ready,

property to have gained an incredible increase!”

and made a profit without ever having moved in!

28

On Trend Locations for Family Living If you’re choosing a home for your growing family, then location will prove very important. Here we make our pick of the locations that are trending when it comes to bringing up little ones.

The South

The North

“In my opinion – and I’m not biased! – Marsascal is

“Mellieha is my favourite pick for the north and

the best up-and-coming town in the region for raising

has been for a while,” Konrad continues. “It has

a family,” says Marsascala branch manager Konrad

open spaces and green areas that are fun for

Sultana. “It’s a lovely place to live, with a beautiful

children to play in, and is also close to a number

promenade to enjoy, good road infrastructure, just

of beaches which is ideal in the summertime.”

enough tourists in the summer, and no nearby industries polluting it. It’s also well connected, and easy to get

Gozo

to from other parts of the south and the east.

There are challenges for families buying in Gozo as, currently, connections are limited to just

“One disadvantage here is that you won’t find any old

the ferry. “I see Gozo more as an option for

properties to make your home, but there are a number

investors or those after a second home rather

of apartments, terraced houses and villas. It is also one

than for families, although some have

of the best-planned parts of the island, with bungalows

relocated here very happily. If you do opt for

by the seafront leading to taller properties further back.

Gozo, then there are opportunities to buy

This means it tends to feel more open and spacious,

beautiful country houses or apartments

which is also a nice feature for families to enjoy.”

by the sea, both of which could suit growing families,” Konrad concludes.

The Centre The Three Villages (Balzan, Lija and Attard) are

Moreover, unlike art, which has a market value that

always popular and there are a number of good

depends on trends, fashions and how much someone

properties available here with outside space,

is willing to pay for it, property is almost always sure

which can be an important factor for a family.

to appreciate in value. In Malta, in fact, over the past 15 years, the price of property has gone up by roughly five

Siggiewi is also very up-and-coming, as it’s close to the

per cent per annum, with property in Sliema,

countryside and has a lovely village square. “There is a mix

St Julian’s and the surrounding regions

of properties available here, including new apartments

going up by 10 per cent.

on the outskirts and more traditional homes in

the village core,” Konrad explains.

29

foreignbuyers

Buying a Holiday Home in Malta Gorgeous weather and a vibrant lifestyle make Malta the ultimate holiday-home destination!

With 300 days of sunshine on average per year, Malta is one of Europe’s top summer destinations. In fact, its 400,000 population welcomes almost two million tourists on a yearly basis.

Many choose to stay in hotels or to rent out an apartment for the duration of their stay, but what if you could own your very own piece of property in this sunny haven?

30

Where to Buy

What to Buy

Seaside towns all across the

Apartments are by far the most

perimeter of Malta are incredibly

popular type of property with

popular for holiday homes. The

holidaymakers, particularly due to

most in-demand remain the towns

the price tag (you’ll be looking at an

of Ta’ Xbiex, Gzira, Sliema and St

average of €200,000 for a two-

What to Ask

Julian’s, all of which are a stone’s

bedroom apartment; or €250,000

Asking an estate agency for help

throw away from Malta’s party mile

in the Sliema-St Julian’s area).

when looking for your ideal holiday

(Paceville), some of the island’s best

Even so, seafront villas and

home will make your life easier in

shopping centres, and a myriad

bungalows with private pools

more ways than one, particularly

of restaurants, bars and cafes.

are, of course, also available.

when purchasing a property outside

Nevertheless, Marsascala in the

Whatever you purchase, however,

of your home country. From knowing

southern part of the island and

location should remain the most

about the latest government

St Paul’s Bay and Mellieha in the

important factor in your decision.

incentives that you may be able to

north remain firm favourites.

While Malta only measures 316km2,

benefit from, to knowing exactly

Each having distinct personality

you still want to ensure that your

whether the property you are

and charm, these towns

property is close to all amenities,

looking at is in a good area or not,

command breath-taking views

including supermarkets, pharmacies

can make all the difference. Either

of the Mediterranean

and post offices. It’s also ideal if

way, always ensure that you seek

Gozo, of course, should

your property is within walking

the advice of a qualified architect

also not be overlooked.

distance of the nearest beach.

before signing any contracts!

31

foreignbuyers

Why do Foreigners buy in Malta?

While it may be the smallest nation in the European Union, Malta still exceeds all expectations.

32

Measuring just 316km2, Malta is often referred to as ‘tiny’, but that doesn’t seem to put many people off, and more and more are choosing to relocate here year on year! We’ve listed the most important reasons why foreigners move to Malta.

Lifestyle

Language

Whether you’re a fan

While Maltese is the

Tax & Citizenship Schemes

of coffee culture,

national language,

When you decide to

late-night clubbing,

English is also an official

move to Malta there

dining out, history, sunbathing or

language of the Maltese Islands and

are a number of citizenship schemes

adventure, Malta lends itself well to

pretty much everyone speaks it.

you can apply for, including the

all lifestyles. The Maltese, in fact, are

This is very helpful when it comes

Global Residents Scheme, the Malta

renowned for their joie de vivre, and

to settling in and making the island

Retirement Programme and the

they’re always more than happy

your home, as well as for

Citizenship and

to share it with.

doing business here.

Individual Investment.

Size

Melting Pot of Cultures

Retirement Haven

Nothing is ever too far away in Malta, be it the

Malta’s geographical

a great idea and,

local post office or the

location and history

whether you’re

Retiring in Malta is

country’s main shopping area. This

that spans over 7,000 years have

going to make your base a luxury

makes it ideal for those who want a

both contributed to its development

apartment overlooking one of the

quiet retreat in the countryside but

into a place where cultures meet and

yacht marinas, a penthouse within

still want all the amenities of a city,

merge. Influences by the British, the

a purpose-built retirement village,

or those who want to live within the

Italians, the French, the Arabs and

a historic townhouse in a quaint

hustle and bustle of a town without

even the Phoenicians can still

village or a villa with a pool in the

giving up on the relaxation of a stroll

be felt on the island, whether it’s in

countryside, you can rest assured

in the wilderness or a quick

the language, the architecture

that you’ll never get bored or be

walk to the beach.

or the food.

too far away from anything.

Safety

Weather

Property

With one of the lowest

On average, Malta

From historic palazzos

crime-rates in Europe

enjoys 300 days of

to luxury apartments,

and the wider world,

sunshine per year, so

and from villas to

Malta remains a wonderful place

it should come as no surprise that,

period townhouses, you’ll be sure to

to raise children, to explore, and to

for many years, Malta was known as

find a stunning property to turn into

grow old. Close communities where

the land of sun, sea and sand. The

your home. The choices are endless,

neighbours know neighbours also

summer months are characterised

and be it seafront, rural or urban,

add to that feeling of safety.

by 30+°C-temperatures, while it

there is something for every taste

never goes below 0°C in the winter.

and every pocket.

So, what are you waiting for?

Why not make Malta your home?

33

foreignbuyers

Residency Schemes Over the years, as Malta opened its doors to people of different nationalities who wanted to live on the Islands, the Maltese Government has introduced numerous residency schemes.

The one that best suits you depends mainly on your circumstances, including where you come from and what your plan is while you’re in Malta.

We list the most important and popular residency schemes available. Nevertheless, seeking the guidance of audit firms is definitely advisable.

34

EU, EEA and Swiss Nationals In 2004 Malta became a full member state of the European Union, meaning

Malta Residence & Visa Programme.

that any nationals from the 27 other member states, the European

This allows individuals who are

Economic Area and Swiss Nationals could now be free to work and live in

over 18 years of age, and who

Malta and enjoy the same tax rates and benefits of Maltese Nationals.

meet the requirements imposed by the programme, to be granted

EU, EEA and Swiss Nationals are also able to apply for the Malta

residence in Malta. The criteria

Retirement Residency Scheme, where candidates will enjoy a tax rate

here include having international

of 15 per cent on any income accrued outside of Malta but which is

health insurance and an annual

received by the beneficiary or his or her dependents in the country.

income of not less than €100,000 or capital of not less than €500,000.

Third-Party Nationals Candidates seeking residence in Malta and who are non-EU, -EEA or –

Each candidate will be requested to

Swiss Nationals, can still opt for a number of residency programmes.

give a non-refundable contribution of €30,000 to Identity Malta, an

Ordinary Residence can be granted to those seeking employment, as

initial investment of €250,000,

long as they satisfy a number of criteria, with those qualified and looking for

and to hold title to property on

work in the IT and financial services being highly sought-after. Self-employed

the island, be it a long-term lease

status, however, requires an investment of not less than €500,000, which

(minimum €12,000 per annum in

can be in fixed assets, capital to be used for business, or a mixture of both.

the north or €10,000 per annum in the south or Gozo) or purchased

Long-Term Residence is granted to individuals who live in Malta for a continuous period of five years, given that they are not away from the

(minimum €320,000 in the north, or €270,000 in the south or Gozo).

country for more than six consecutive months in any given year of those five years, and not more than 10 months in total over the five years.

The Global Residence Programme gives third-party nationals recognition as tax residents, with a remittance basis of 15 per cent flat rate.

There is no minimum presence required through this programme, however the candidate must own property on the island worth at least €270,000

Other residency schemes, including

in the north, €220,000 in the south or €250,000 in Gozo; or else rent for a

ones for students, are also

minimum of €9,600 per annum in the north or €8,750 in the south or Gozo.

available. Once again, an audit

This programme also entitles the candidate, as well as his or her family

firm would be able to explain the

members and domestic staff, work permits and access to the Schengen

exact criteria and steps needed to

Area. Applications are normally processed within three months.

secure any if the above schemes.

35

foreignbuyers

Prime Locations for Foreign Buyers While Malta may be small, many areas stand out for their unique charm.

If you’re thinking of making Malta your home, here are some of the areas you should consider.

The Sliema-St Julian’s Area often refers to the stretch between Ta’ Xbiex and Madliena, and encapsulates a number of villages and towns in the vicinity, including Swieqi, Tal-Ibragg, Sliema and St Julian’s. This is by far the most popular area in Malta with shopping, eating-and-drinking and nightlife all playing a prominent role.

The kind of property available here is varied, although it tends to be more expensive than in the rest of the islands. Ta’ Xbiex, Sliema and St Julian’s are renowned for having some of Malta’s most luxurious apartments; while Sliema and Gzira also have a number of turn-of-the-century townhouses that are both spacious and gorgeous. Madliena and Tal-Ibragg, on the other hand, are great for those looking for a detached villa or bungalow, complete with country views, pools and even tennis courts. Six of Malta’s Special Designated Areas, namely the Portomaso Development, Portomaso Extension I, Tigné Point, Fort Cambridge, Pender Place and Metropolis Plaza are situated within the Sliema-St Julian’s area.

36

Valletta & Floriana Famous for their history, these five localities are rich in unique properties, whether spacious apartments overlooking the sea, townhouses with distinctive

The Three Villages & Mellieha

Gozo Quaint and largely unspoilt,

features, or palazzos. The country’s

The Three Villages of Lija, Attard

Gozo has a vast array of property

capital, Valletta – which is a 2018

and Balzan are considered to

on offer for anyone looking for the

European Capital of Culture – has

have some of the best prime real

ultimate holiday home or a quiet

become one of the most sought-

estate in Malta, with centuries-old

retreat. Property here includes turn-

after areas on the island, and

farmhouses, spacious townhouses

of-the-century townhouses in the

property is now in short supply.

and detached villas all available.

capital, Victoria, or even hundred-

Many developers (local and foreign)

Meanwhile, the seaside town of

are turning properties here into

Mellieha is renowned for its Santa

luxury boutique hotels, and the ever

Maria Estate, where tens of holiday

Gozo is home to Malta’s most

re-awakening atmosphere of the city

villas and bungalows sit next to

spectacular Special Designated

has also given rise to an increased

each other and enjoy the stunning

Areas, the Kempinski Residences

number of entertainment and

views of the surrounding areas.

and Fort Chambray.

year-old farmhouses scattered in the countryside.

eating-and-drinking establishments.

Floriana, once a suburb of Valletta

Marsascala & The South

and today a bustling town in its own

Seafront villas and properties with

right, offers great property at

extensive land are all available in

a lower price tag .

the south of Malta, particularly in Marsascala. Property in Marsascala

The Three Cities (Bormla, Birgu and Isla), which are

tends to be relatively modern as

located across the Grand Harbour,

living memory, and it is also home

are probably one of the biggest

to the Ta’ Monita Residence,

real estate success stories of all

another Special Designated Area.

most of it has been built within

time on the islands, with areas that had laid derelict for decades

The SmartCity Special Designated

being turned into some of the most

Area is located 20-minutes away

desirable on the island. The Three

by car near Kalkara.

Cities are also home to the Special Designated Cottonera Development.

37

foreignbuyers

Luxury Property With a booming property market, it’s good to know the basics of finding the right luxury property in Malta.

While there are a number of factors that affect the price of property, luxury doesn’t always have to mean the most expensive. As in any other country, location, the type of property, and the finish all make a huge difference to the price.

38

Location, Location, Location It’s the biggest cliché in real-estate, but it’s true nonetheless. Where the property you are eyeing is situated makes a huge difference to its price, and on an island that is considerably small, even apartments in the same block can have incredibly different price tags and finishes.

Some of Malta’s most up-market locations include Ta’ Xbiex, Sliema, St Julian’s, Madliena, the Three Villages (Lija, Balzan and Attard), the Three Cities (Bormla, Birgu and Isla), Valletta and Mdina. The first three are where most luxury apartments and penthouses can be found, while the others have various houses of character, townhouses, period homes, palazzos and palazzinos.

Even so, you will find grand houses in almost each and every village in Malta and Gozo, so if your ultimate goal is a luxurious property rather a property in a luxurious area, don’t be afraid to venture beyond the towns and villages mentioned above.

Finishing When it comes to luxury property, its finishings are as important as its location and living space. Over the past couple of years, the average finishing for property – particularly

Special Designated Areas

in the luxury department – has

Certain areas in Malta, including Portomaso in St Julian’s and Tigné

improved manifold, with things

Point and Fort Cambridge in Sliema, are Special Designated Areas

like underfloor heating and double

with luxury apartments to boot. There is no restriction on the

glazing becoming standard. What

number of properties non-citizens can buy in these areas.

you need to look out for when sourcing a truly luxurious property

Historical Buildings

is the use of finer materials (like

Malta is dotted with historically-important buildings, both in the heart of its rural

marble and solid wood), made-to-

villages and in its many official cities, like Valletta, Mdina, Birgu and Qormi. These

measure furniture, and an over-all

can often be found unconverted, and, as Grade I- or Grade II-listed buildings,

designer finish. This is what truly

the process of buying and owning a unique piece of Maltese history is slightly

sets a luxury property apart from

more laborious than getting your hands on a designer-finished penthouse.

an expensive one, and determines

The government, however, has recently released a scheme where owners of

why a one-bedroom apartment

historically-important property or property in urban conservation areas can

could cost more than a villa.

claim up to €100,000 back on the cost of restoration and refurbishment.

39

aboutdhalia

LUXURY LIVING

BY DHALIA

www.luxurylivingmalta.com

40

Luxury Living is Dhalia’s newest department, set up to focus on upmarket residential property exclusively. Buyers and sellers of luxury properties have very specific needs and, understandably, very high standards when it comes to their property. For this reason we have set up Dhalia Luxury Living to provide upmarket clients with the specialised services they deserve - covering everything from photography and styling to a tailor-made marketing plan.

What defines Luxury Living?

Luxury Living homes encompass style, impeccable design, and infallible comfort. The brand is a vision of the ultimate homes in the Maltese Islands - you won’t settle for anything less.

Our focus is on the quality of a property and the essence of what distinguishes it from the rest, not the price tag. Through precise analysis we match the unique needs of an individual client with the right home.

Our team is composed of senior property consultants and managers who have the experience necessary to prepare and implement a completely

Introducing Luxury Living by Dhalia

customised plan of action to match luxury buyers with the right upmarket property. Our specialists are discrete, dynamic, and above all professional.

a collection of

Luxury Living by Dhalia is an exclusive handpicked portfolio of sublime

sublime homes for

excel on all levels - seamlessly combining form and function in immaculate

unique clients.

finishes and unparalleled comfort throughout for a true luxury living space.

properties. Selected by experts with decades of experience, these homes design. These unequivocally stunning properties incorporate top of the line

41

letting

Letting Out Your Property Thinking of buying property to let? Here’s what the situation is like in Malta.

Property in Malta is experiencing an unprecedented boom: in 2015, advertised property prices went up by 10 per cent, while in the first quarter of 2016 they went up by a further 9.9 per cent. That increase has continued to grow, both with regards to selling and letting prices. Indubitably, these increases have been spurred by the ever-increasing demand for property by locals, as well as by foreigners looking to make Malta their home.

In fact, if you play your cards right, your property could be let within weeks, days or even hours of you putting it on the market.

42

Get Advice from an Estate Agent Through experience, estate agents have invaluable knowledge and contacts that could help you let your property. They are also able to advise you on any laws governing the letting process, and answer any tax-related questions you may have.For example, when buying property to let, you must indicate this to the government, as it will then be considered a business venture.

Don’t Underestimate the Competition While the demand and supply of property in Malta is at an all-time high, it is still important to remember that quality sells – or, in this case, leases – faster.

Our estate agents recommend that you opt for a minimal but high-finish décor that allows tenants to see themselves in the property. In fact, while decorating, you should always ask yourself: Would I want to live here?

Prices Rent prices on an inland studio apartments are going for €600+ seafront for €1,200 and over. Villas and bungalows, meanwhile (and particularly those with pools and stunning views) can even go for as much as €4,000-4,500 per month. Prices obviously depend on

an array of factors, including the location, the finishing and whether it’s a short - or long - term lease.

Other Information When you lease out your property through an estate agency, you can expect to pay 50 per cent of a month’s rent to the estate agency.

Your tenant will also pay 50 per cent plus VAT (which is set at 18 per cent) of a month’s rent to the agency.

Tenants in Malta are usually asked to give a month’s rent as a deposit but, if pets will also be staying in the property, two months is the standard.

Commercial leases are different.

Estate agencies normally charge

10 per cent of a year’s rent from both sides, plus VAT. If you have any questions about letting in Malta, why not give us a call?

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letting

The Renting Process Why is renting in Malta so expensive?

How is rent paid?

There is no denying that rental prices in Malta have gone

Rents are usually paid in advance. It is up to the

up. With one-bedroom properties in the most desirable

tenant or landlord to agree how that payment is made,

spots on the island fetching around €1,000 per month,

whether as cash, a cheque or via bank transfer.

this has priced some people out of the market. Our recommendation is to look to areas beyond Sliema,

What is included in the rental agreement?

St Julian’s and Valletta, to places including Gzira, San Gwann and Pieta. Malta is small enough to ensure

Most places in Malta are furnished – usually down to the

it’s easy enough to get around wherever you are.

crockery, cutlery and linen. Utility bills will, generally, be added as extras, as well as internet and TV services.

How do I find a property to rent?

How quickly can I expect to rent?

The first step is to figure out exactly what you want from your rental property – for instance, is this a home

Renting in Malta follows a very simply procedure.

for a family, a couple or a single person? What sort of

You can often rent within the hour if you want to! It

location would you like? How much can you afford to

all comes down to how quickly you can decide.

spend? Once you have that information, it’s best to take it to a reputable estate agent with a strong database,

You can expect to visit a number of properties within 24

who will be able to match properties to your criteria.

hours and, once you pick one, to have signed the contract within an hour or so. Depending on the availability of

How do deposits work?

the property, you could even move in the same day.

Your deposit will normally be calculated as equivalent to one month’s rent, and this amount will be held by the landlord for the duration of your contract.

Got questions about

Once the rental period is over, and if the terms

renting in Malta?

have been respected, then it will be returned.

We answer them!

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Renting: Dos & Donts When it comes to renting a property, specific rules apply Here we present our suggestions of what to do (and not do!) when moving into your new rental home.

DO

DON’T

Research the area. It can be surprising to learn how

Skim through the contract. There’s a lot of detail to take in

different each part of Malta can be, even though they’re so

when you’re signing a rental agreement but it’s all important

close together. Try to get to know the surrounding location

stuff. Read through it in detail and don’t skip anything.

before you move in by walking around and exploring.

Be un-neighbourly. Whether you’re moving into a block

Check out the property. From the shower pressure

of apartments or onto a street of houses, remember to

to the way the washing machine works, you will need

respect those living nearby. It’s worth it to introduce

to ask questions about your new home. Don’t rush

yourself to neighbours and get to know them.

through, as you may miss something important.

Disrespect the property. Remember that while this

Conduct an inventory. Your landlord will probably

may not be your permanent home, the landlord has

give you an inventory of the property, but it’s

likely invested a lot into getting it ready for you.

important for you to double-check it and ensure

Treat it as though it were your own, and remember

it tallies with what really is in the property.

you will need to return it in the same condition it was received if you want to keep your deposit.

Get things in writing. If you’ve discussed additional elements with your landlord and they’re not

Be unhappy. If something isn’t right about the

included in your contract, then try to get them

property, then do let your landlord know. If they

in writing in another way, such as on email.

don’t resolve the problem speak to us and we will do our best to get the message across. We want you to

Try to build a relationship with your landlord. They’re

feel happy and comfortable in your new home!

likely to become an important person in your life for the foreseeable future, so it makes sense to try to get along and to come to clear agreements about the property.

Speak up. If you’re unsure about anything or have any worries, let us know – we’re happy to help iron them out so as to ensure both you and the landlord are happy to proceed.

45

letting

Trending Locations It wasn’t long ago that Malta’s letting market stood still – largely because most young people chose to live at home with their parents until they got married, so there was very little demand for it.

However, 15-or-so years down the line that has changed completely and Malta’s rental market is now thriving thanks to the number of foreigners living here, as well as the fact that young people often choose to move out earlier now.

Benji Psaila Branch Manager Dhalia The Strand

In fact, today, demand for rentals outweighs supply in most parts

bepsa@dhalia.com

of the country and the majority of properties get snapped up within a few days of coming onto the market. This has created ‘trending’ locations around the island – some of which are new on the radar, as well as others that have always been popular.

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Trending rental locations

San Gwann Birkirkara

Gzira Pieta Floriana

Marsascala

“Marsascala is definitely trending,” says Benji Psaila, who manages our Gzira branch. “The south as a whole has gained popularity because so many people now struggle to afford Sliema and St Julian’s. Marsascala is booming and prices have shot up by 3040% from a rental perspective in the last few years.”

Benji explains that this increase in popularity is down to the number of companies that have shifted their business to the south of Malta, and to destinations like Smart City. “There is also a lot of development planned for the area in the months to come, so there is a buzz about the place,” he says.

“Even gaming companies and other international businesses have been priced out of Sliema and St Julian’s, so spots like Marsascala provide many of the facilities their staff will want, including close proximity to the sea and the ability for them to walk to work.”

Finally, Benji’s got his eye on a couple of places that are likely to gain popularity among renters in the years to come. “Pieta and Floriana, definitely,” he says. “In fact, Pieta

Other than Marsascala, Benji explains that the areas around St

is already thriving thanks to one

Julian’s and Sliema are also trending, namely Gzira, San Gwann

developer that took the risk to invest

and Birkirkara. “Renters in these areas find that they’re still close

here. He sold out completely in a

enough to Sliema and St Julian’s to make it feasible for them to

matter of weeks! You’re still in time to

cycle to work or take the bus, and rents are much cheaper here.”

bag a bargain in these parts,” he adds.

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investment

Investing in Property Buying property in Malta has become one of the most popular – and lucrative – investments out there in recent years. In fact, the number of people looking for properties to rent out has been steadily on the rise, especially as Malta’s rental sector has boomed as a result of the many foreign companies now investing here.

Because of this, Malta’s banks have introduced a special buy-to-let product that helps potential investors to take the plunge, with a rate that’s currently set at 3.9% interest.

While prices in the buy-to-let apartment sector have gone up making it harder for people to make the investment, there are other options out there – including purchasing offices to let, as well as street-level garages.

Regardless of the type of property you invest in, you can still expect to enjoy a 6% return at the moment.

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Investing in the Rental Market With the average price of rent on the rise and property in very high demand, there has never been a better time to invest in a buy-to-rent property in Malta.

But where should you buy? How much should you expect to yield? And is there a catch to all this?

What do I need to know?

Where should I buy?

Much like buying property anywhere else in the world,

Sliema, St Julian’s and Swieqi remain the most popular

what you need to keep in mind is that the property is

localities on the island, and they’re set to stay that way

close to all amenities. With Malta being so small,

as most foreigners choose to live here. Prices here are

that is rarely a problem.

known to be higher than in other parts of the island, but the demand for rent still means that it is worth the

The second thing you need to be sure of is that,

investment. Nevertheless, places that are a stone’s throw

when you’re purchasing a property to rent out,

away, such as Gzira, offer similar properties for up to 15

you should be making five per cent back on the

per cent less – and, because they are so close, the rent

property’s value per year.

is very often the same. As the market in the Ta’ Xbiex to Swieqi stretch (which incorporates Gzira, Sliema, St

So, what kind of property should I invest in?

Julian’s and Swieqi) becomes ever-more saturated and

It is safe to say that, when it comes to rental

pricey, many are looking to buy property in nearby places

investments, it’s often more worthwhile to buy a studio

like San Gwann, Kappara, Swatar, Pietà, Guardamangia,

or a one- or two-bedroom apartment rather than a

Santa Venera, Birkirkara and Msida, which can still bring

house or a three-bedroom apartment. For starters, most

in €600-800 a month.

locals still look to buy their own property so the rental market is made up of foreigners who move to Malta

What are the taxes like?

for work, and who tend to either live alone or with their

The Final Withholding Tax in Malta is 15 per cent of the

partner. Secondly, the more expensive the property, the

income earned from the rent itself. Before purchasing

more unlikely you are to earn back five per cent of the

a property, in fact, you should always ask your estate

property’s price per annum.

agent to explain exactly how much you’ll be earning after you pay this tax, as well as any fees, to ensure that your investment is worthwhile. At Dhalia, we always give you the final, net amount.

Need more advice on rent-to-buy property?

Then why not get in touch with us?

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casestudy

The First-Time Buyer’s Experience When copywriter and online marketing specialist Mark Debono came to Dhalia, he was looking for his first residential property.

With a budget in mind and a realistic approach to what he could get with it, we helped him find the right property for his needs.

As a first-time buyer, what were you looking for from an estate agency?

Someone patient and knowledgeable enough to help me find a property that matched what I was looking for. They also needed to know the market with respect to my budget. I did not want to be shown a bunch of subpar or over-budget properties, and to waste time

.

How did Dhalia provide that?

I found Dhalia and my agent in particular, Marco Audino, to be excellent in all respects. They understood my busy schedule and worked around it, and only showed me properties I could realistically afford. My focus shifted from one area of the island to another during my property hunt, and they were super helpful there, too, collaborating between regional offices on their own part so I didn’t have to bother with any of the logistics or behind-the-scenes issues.

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How long did you spend looking for property and what kind of property did you end up buying?

I looked for about two-and-a-half months and, in the end, bought a three-bedroom apartment in the much sought-after central area. I’m still living in it, so that must be a ringing endorsement of itself!

Did anything surprise you about the market while looking for property?

It is full of surprises: buying a property isn’t cheap, and there are hidden costs everywhere. Nevertheless, before our hunt, Marco sat me down with a clean sheet of paper and worked out the costs for me, so I knew beforehand what I should expect.

What advice would you give other first-time buyers?

Patience, trust and realism are all very important. Patience because, in my case, one of the first properties I saw was the one I ended up buying, but I’m glad I didn’t make an offer earlier as I wouldn’t have realised that the deal was a perfect fit for me… Not without seeing what else was out there first, definitely! Trust because, although agents work for money, the reputable ones know that commissions come second to getting a lifelong client. And realism because it can help keep you in check: we all want a detached bungalow with a pool, but perhaps that will be property number three as opposed to the first one you’ll ever buy. At the end of the day, buying a house is one of the most intensely personal things you’ll ever do, so go with your gut feeling and make sure that what you make an offer on is something you can truly see yourself living happily in for the next few years!

51

casestudy

The Buy-For-Rent Investor’s Experience Sportsbook software development manager Jonathan Cassar came to Dhalia looking for a property he could rent out as part of his investment portfolio.

Why did you decide to buy a property to rent out?

I was looking for something I could invest in that would also give me some extra cash in hand per month. I think buying a property to rent out is a great way of investing in the future while also getting something back in the here and now.

What can you tell us about the property you got?

I settled for a small studio apartment close to the main University of Malta campus. As far as renting it out goes, the property is in a great location as potential tenants include Gozitan and foreign students, as well as those who want to live near or work in the Sliema-St Julian’s area. My particular apartment came at a good price and with a tenant included!

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Why did you consider buying a property to rent out to be a worthwhile investment?

On top of having the property in itself, which can be sold anytime in the future if and when necessary, renting it out means that there is a steady income coming through on a monthly basis. Once the property is done up and rented out, the work is very minimal, too, so it’s great.

How did Dhalia help in this process?

My idea was always to buy a cheap and simple place that I could rent out without too much hassle. Dhalia found exactly what I was looking for in a very short span of time and, what was even better, was the fact that it was already being rented out when I bought it.

Did anything surprise you about the market while looking for property to rent out?

Not really! The process was very short-lived and, in less than two weeks, I went from looking for a property to the promise of sale. It was all quite smooth, really.

?

What advice would you give other people who’d like to buy a property to rent out?

When renting out a property, you always need to make sure that you have time to spare, particularly as different tenants have different needs and requirements… Sometimes at strange times of the day. Having said that, it’s proven to be very worth it so far!

53

facts&figures

Number Crunching: the Maltese Property Market Property in Malta is a numbers game – and a busy one at that. To help you get to grips with all the data currently out there, we sat down with Grant Thornton’s Senior Manager for Transaction Advisory Services to pick the stats we thought you’d want to know!

Malta’s construction and real estate sectors account for around 10% of the GDP.

The Property Price Index (PPI) grew by 2.6% in 2016, driven by the strong growth in the price of apartments.

The highest percentage of properties sold in 2016 was in St Paul’s Bay, making up 9.8 per cent of purchases. Following behind on 7.1% and 5.5% respectively were Sliema, Marsascala and St Julian’s.

Despite the decline experienced in the sales volumes, the real estate GVA grew once again in the first quarter of 2016 to €112.6 million.

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In the last four years, 941 properties (worth around €400 million) were sold to foreigners. This was mainly due to the Acquisition of Immovable Property Permit (AIP) issued by the Maltese tax authorities.

During that time, 482 of the purchased properties were located in the Northern harbour district, which includes St Julian’s and Sliema.

The average price of properties sold to foreigners across Malta and Gozo was €363,881. Properties in the Northern harbour district garnered the highest price-tag – an average of €765,745 per property.

Gozo ranked as the third most popular region for foreign buyers, with a total of 115 properties worth €25 million sold since 2012.

The Central Bank of Malta’s (CBM) property price index, which tracks movements in advertised residential property prices, shows that house prices increased at an annual rate of 6.3% during 2015, (2014: 7.0%).

The gross value added from real estate activities stood at €112.6 million (seasonally adjusted data) in the first quarter of 2016. This roughly corresponds to 5.7% of Malta’s Gross Value Added.

* The data used in this report was the most up-to-date data available from Grant Thornton at the time of going to print.

55

facts&figures

Malta in Figures Will any of it surprise you?

Size & Population

General

Malta enjoys 300 days of sunshine a year.

Between January and December 2015, 1,791,422

Malta is the smallest country in the European Union, making up around 0.01 per cent of the whole size of the EU with an area of 316km2. Worldwide, it is the ninth smallest independent nation.

tourists visited Malta, spending a total of 14.2 million nights on the island and injecting

around €1,643.9 million into the economy.

While Malta’s population also only makes up 0.1 per cent of the total percentage of the European Union, with around 434,000 residents, it still remains

Out of the 14 public holidays enjoyed by the Maltese,

the most densely populated country in it and 10th

two are public holidays (New Year’s Day and Workers’

in the world with around 1,352 people/km2.

Day), five are national holidays (Freedom Day, Sette Giugno, Feast of Our Lady of Victories, Independence

Life expectancy in Malta is 84.2 years for

Day, and Republic Day), and seven are religious (the

women and 79.8 years for men.

Feast of St Paul’s Shipwreck, St Joseph’s Day, Good Friday, Saint Peter and Saint Paul, Assumption Day,

Immaculate Conception Day and Christmas Day).

81.4 per cent of men in Malta aged between 20 and 64 years are employed (as opposed to the 75.9 per cent average in the rest of the EU); meanwhile only 53.6 per

The Feast of Our Lady of Victories, which is celebrated

cent of women aged between 20 and 64 are employed

on 8 September, commemorates the end of the Great

(as opposed to the 64.3 per cent average in the EU).

Siege of 1565 and the surrender of the Italian forces in 1943 at the end of World War II. Between 1923 and

Malta has the smallest number of traffic victims in the EU with 2.6 people per 100,000 people.

GDP & Commerce

Malta’s GDP is €9.17 billion, which makes up roughly 0.1 per cent of the EU’s GDP.

The GDP per capita in Malta is €21,400, as opposed to the €28,900 EU average.

54.9 per cent of all exports from Malta go to places outside of the European Union. Meanwhile, 65.3 per cent of all imports into the country come from member states.

In 2015, Malta shipped 37 per cent of all paper money exportations within the EU.

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1974, this was considered to be Malta’s national day.

Real Estate Vocabulary Explained With so many complicated technical and legal terms used in real estate, we’re not surprised that many people find themselves feeling confused. To bring some light to the issue of property vocabulary, we’ve included a glossary of terms.

Abbreviations

Real Estate Terminology

AIP Acquisition of Immovable Property - this

Agency Agreement this is the arrangement

permit is required in order to allow a foreign

with an estate agency which determines whether

national to purchase property in Malta

a property will be listed with only one agency (sole agency, at 3.5% commission), or with many

EPC Energy Performance Certificate - required by

agencies (open agency, at 5% commission)

law, this document is presented by the seller to inform the buyer about the energy performance of a building

Airspace the surface of the land or the top of the building (roof)

ROI Return on Investment - usually a percentage per annum, this number informs an investor on what kind

Appraisal a professional opinion of the

of return to expect

value and/or potential use of a property

SDA Special Designated Areas - These are locations

Bridge loan a bank loan to cover an interval

where both EU and non-EU individuals can purchase

between two transactions, usually the purchase of one

property in Malta without the need for a permit.

property and the sale of another

SQM square metres - the area of a space measured

Contract once all conditions of the promise of sale

in square metres

agreement are completed, all parties get together to sign the final contract

UCA Urban Conservation Areas - these are important areas within the towns and villages of the Maltese Islands

Deposit a portion of the agreed selling price (usually 10%) that is due at the signing of the promise of sale

Easement the right to use private land for a specific purpose

Equity the amount of a property’s value that belongs to the owner, after removing what is owed to the bank from the mortgage

57

glossary

Final Withholding Tax this tax is charged

Property Types

on the sale on immovable property

Apartments are modern, often open-plan spaces Freehold the complete ownership of a property

with a set of rooms on one floor within a block or larger house. Common areas are shared.

Ground rent is a charge imposed by the owner of the land upon which property is

Penthouse the top-floor unit/s in an apartment

built. This can be temporary or perpetual

block, offering panoramic views and outdoor space.

Lessee the party that pays for the use

Maisonettes are laid out on one floor and enjoy

of a property in a rental agreement

their own independent entrance.

Lessor the landlord who rents out property

Houses of Character are usually between

in return for a fee in a rental agreement

100-400 years old, found within typical Maltese villages. They are built out of local stone and

Mortgage a loan arranged with a bank which

offer many traditional features such as wooden

allows a buyer to purchase property

beams, flagstone flooring and patterned tiles.

Notary A publicly appointed official who will carry

Farmhouses are found in rural areas, they

out searches on the property to determine legal title

are usually old structures offering traditional features such as wooden beams, corbels and

Promise of sale also known as the Konvenju,

flagstones. They often come with their own fields

the buyer and seller meet up to sign this document

and land offering considerable outdoor space.

which sets down the terms of the agreement including price, term, and any other conditions

Terraced Houses are postwar and modern buildings located in residential areas. They are

Recognition fee on the sale of immovable property

usually spread over two floors and often enjoy

which is subject to ground rent, a recognition fee

the comfort of a garage and yard or garden.

equivalent to one year’s ground rent is due

Townhouses are pre-war or post-war houses Stamp duty this is a tax paid by the buyer,

built while Malta was a British colony. They usually

usually at 3.5% on the first €150,000 value of

contain a typical Maltese stone staircase, wooden

the property, except in specific cases

beams, traditional wooden balconies and a façade decorated with stone carving.

Vendor the seller of a property Plots & sites are areas of land where property can be built.

Villas & Bungalows are often detached or semi-detached. Available in both modern and traditional styles, they can offer panoramic views of the countryside and sea. A villa or bungalow will enjoy spacious living areas, large kitchens and also a swimming pool.

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Preserving, Promoting & Sharing our Culture Though Unique Technology

Though our unique 3D imaging technology, we saw the perfect opportunity to provide a portal into Malta’s breath-taking cultural heritage. With the help of Heritage Malta we were given access to some of Malta’s most awe-inspiring locations.

Dhalia’s 3D imaging technology is a smart 3-dimensional camera which maps out its surrounding

Dhalia’s 3D tours are a treasure-trove of what is unique

into an interactive dollhouse. It captures stunning

to the Maltese Islands. Many will agree that Malta is so

detail, stitching together separate shots into one

loved by foreigners and residents alike because of its

complete structure to present the big picture

incredible history. Through the project, Dhalia is making

as an interactive walkthrough environment.

history and culture ultra-convenient and accessible.

The museums and historical sites are just a click away.

Although this technology is primarily used to

Students, history buffs and anyone interested can

create virtual tours of properties, the technology

experience Malta’s awe-inspiring heritage from anywhere.

is ideal for providing the same interactive

Because the 3D virtual tour is always accessible, viewers

experience of Malta’s cultural heritage.

can study their favourite painting for a long as they like.

Scan the QR code to view in 3D or VR.

In collaboration with

facebook.com/dhaliamt/

www.dhalia.com