The price of residential properties rose at an annual rate of 8.9 per cent in the second quarter of 2014, following an increase of 6.7 per cent in the previous quarter, according to the Central Bank of Malta’s advertised property price index.
This marks the third consecutive quarter of strong growth in advertised prices, following a period of decline or weak growth.
In June 2014, the index stood at just below the peak recorded at the start of 2007.
The upward movement in prices may be partly influenced by government measures, namely the introduction of the Individual Investor Programme, which targets high net worth individuals, and a fiscal incentive for first-time buyers announced in the government’s Budget in November 2013.
This acceleration in property prices during the second quarter of 2014 was mainly driven by developments in apartment prices, which account for three out of every five properties, as well as in prices of ‘other’ property, which consist of townhouses, houses of character and villas. Prices of maisonettes dropped when compared with the same period last year.