The Property Market Value Index Malta is a representation of the change in the price of housing which is purchased in the country over a given period and is worked out on an annual basis.
The index itself includes apartments, terraced dwellings and maisonettes. A terraced dwelling is defined as a property of two or more storeys in height with individual access. A terraced house also enjoys its own airspace, with no other structures below it and is attached to other structures on its sides or is a corner property.
An apartment is defined as a suite of rooms or a room (studio) with an individual entrance from a common main entrance and passage, and also includes penthouses.
Maisonettes are a building known in American style as a duplex. Essentially, it is a house split in two, one on the ground floor and one on the first floor, with two separate entrances.
Year on year, house prices in Malta grew by 10.8 percent in March 2019. The previous quarter (Q4 2018) saw growth of 11.8 percent. Since records began being kept in a modern format in 2001, an average growth rate of 5.8 percent has been recorded. The highest rate was recorded in June 2004 at 36.7 percent and the all-time low of -9.9 percent was recorded during the global recession in 2009. Interestingly, Malta did not fall into recession, but the fallout did affect Malta’s Property Market Value Index quite badly.
In September 2018, it was announced by Knight Frank LLP Global House Index that Malta overtook Hong Kong to become the country with the highest residential property price increase in June of that year. According to the figures taken from the Central Bank of Malta’s statistical arm, prices for homes in Malta rose 17 percent between March and June of 2018 when compared to the same period in 2017.
The increase in the Property Market Value Index can be attributed to a squeeze in supply, although a construction boom is happening in the country. With economic growth at a high 6.6 percent of Gross Domestic Product, demand is increasing rapidly. This is due to the large number of people moving to Malta from overseas for work or to take up residency in the country.