Bright future ahead for 'magic malta'

Malta remains an excellent place to invest in property and the country may be the success story of 2008…

Property investment site MaltaBuyProperty.co.uk has welcomed recent press reports highlighting an EC review of Malta - that Sees strong economic growth continuing through 2008 and 2009, a reduction in unemployment, an improvement in public finances, and a continuing growth in domestic demand.

Malta's decision to join the EU and to adopt the Euro has provided a major stimulus to the economy. And according to Ray Woods, managing director of MaltaBuyProperty.co.uk, reductions in personal taxation and downward pressure on interest rates are likely to provide further stimulus to an economy that has struggled in recent years.

Meanwhile in the UK, instability in the financial services market shows no sign of deterring investment in foreign property, Mr Woods claims. Malta is generally regarded as a safe place to invest. Its property market has always been primarily driven by domestic demand - so improvements in the Maltese economy are also likely to feed into the property market.

Increase in inward investment

Despite it dependence on imports, Malta has largely weathered the increase in fuel costs, while reductions in personal taxation are likely to lead to an increase in disposable income. Its location and strong language skills when combined with membership of the Euro are also likely to lead to an increase in inward investment, the website continued reporting.

These improvements in the economy follow on from increases in investment in the infrastructure largely financed by the EU, an increase in air flights to the islands and a reduction in flight costs.

Whilst the traditional package holiday market has declined, the reduction in flight costs has led to an increase in tourism - with increased interest in second homes and in short breaks fuelling overseas interest in property investment.