Residential Property Sales Statistics 2021 - an Overview
2021 proved once again to be a bumper year for the real estate sector in Malta. Despite events across the globe that saw a slight decline in property sale transactions, it seems as though things are once again looking positive, and nowhere is this more evident than in the fourth quarter reports relating to observing the data relating to final deeds of sale and promise of sale agreements.
At Zanzi Homes we’re breaking down this information and providing an overview, arming you with the knowledge to help you make an educated decision when it comes to your next property purchase.
Deeds of sale
Figures courtesy of National Statistics Office Malta
December 2021 saw a 22.6% increase in deeds of sale relating to residential property, in comparison to the previous year. It’s been observed that this increase is even further emphasised with a combined total value in excess of €304 million, with the percentage increase sitting even higher, at 25.3%. Meaning not only are more deeds of sale being signed off, but at a notably higher price as well, indicating a positive growth in the market. More than 90% of these sales were driven by individual households as opposed businesses.
When comparing this against the total figures for the fourth quarter, December represents a large portion of these sales, given that Q4 sales saw a total value of €838.9 Million. That is a 35% increase over the same period the previous year.
And nowhere is this more likely to be a success than in Gozo and the stretch of the south coast reaching from Haz-Zabbar down to Birzebbuga as indicated in the news release from the National Statistics Office.
In contrast, Il-Birgu, L-Isla, Bormla and Il-Kalkara, and the region of L-Imdina, Had-Dingli, Ir-Rabat, L-Imtarfa and L-Imgarr saw the lowest representation with only 181 deeds of sale being processed together, noting a 20.8% decrease in comparison to previous years.
Promise of Sale
Figures courtesy of National Statistics Office Malta
With 2,276 Promise of Sale agreements being processed in December 2021, people were evidently starting to invest back in the market given this was a massive 98.8% increase over the same period in 2020. This is also largely explained when coupled with the imminent expiration of the tax incentive related to acquisition of property, meaning this data cannot necessarily be relied upon to continue much farther into the next year.
Positive news comes in the form of a higher increase in Promises of Sale versus Deeds of Sale over the fourth quarter, with a 32.4% increase being the indicative figure for Promises of Sale showing that the desire in the private sector to initiate these transactions is very strong.
Gozo, remained at the forefront, along with Il-Mellieha and San Pawl Il-Bahar, driving these figures with 1,210 Promises of Sale being processed, bringing good news to those with portfolios including the North of the Maltese Islands looking to initiate sales going into 2022.
In contrast, the areas of Il-Birgu, L-Isla, Bormla and Il-Kalkara, whilst not topping the list in terms of Promises of Sale processed, saw the most significant increase in applications put through, with a staggering 105.1% increase on the previous year.
Summary
The move out of the initial pandemic panic has seen incredibly strong increases regarding peoples move to either buy or sell property in comparison to the previous year. This can be attributed to a removal of uncertainty as countries around the globe are looking to move forward positively and job security, and therefore financing has stabilised.
At Zanzi Homes we aim to keep our finger on the pulse of the market, and in doing so can bring a wealth of experience and knowledge of the Maltese property market to all of our clients. If you are currently looking to buy or sell your property in Malta, why not contact us or pop into any one of numerous branches across the Islands and we can have a coffee whilst we work out how to make your next move.
Main blog image by Christa Mahler from Pixabay