Rental Investments

Rental investment in Malta is as old as the practice of landownership. Affluent persons would buy property and rent it out to tenants. This practice was particularly common during the 19th and 20th century, with Maltese renting out their properties to the British Forces during their stay, as well as to fellow Maltese who could not afford to buy their own house.

The growth of niche industries such as gaming, pharmaceuticals, back-end office operations and financial services, as well as foreign nationals relocating or retiring to Malta has led to a strong surge in demand for rental properties, with many opting to rent, and eventually invest in and purchase their own property. Local demand also factors in.

It is therefore for good reason that many have seen the two-fold investment potential in this: holding property as a secure investment that will retain its price and appreciate in the long term; and a steady stream of income in the form of rental payments. Factor in the excellent choice of good-value property available at the moment, and the attractive interest rates on home loans, and the recipe for a solid investment could not be more fool-proof. But what kind of rental return is one to expect? At present this is estimated at between 3.5% to 6% per annum. It very much depends on the type of property in question, the location and the level of finishing and furniture.