Property’s growing pains: new report urges 'prudency'

Concerns that Malta’s property market growth is slowing down were confirmed in a new study last week. Ivan Martin takes a look at some of the findings from a new report by accountancy firm KPMG.

Developers and real estate agents consulted for the Construction Industry and Property Market Report 2019 gave a rare glimpse into how they truly feel about the property market today. 

The report, commissioned by the Malta Developers Association, once again dispels fears that a property bubble was imminent but encourages stakeholders to be “prudent”.

Here’s a look at some of the salient points in the document. 

Will high-end properties sell?

Many operators who spoke to the study team questioned the feasibility of high-end luxury developments, especially in the face of challenges facing the upper end market today. 

The quality and standards of projects delivered so far would struggle to meet the expectations of international buyers who are cross-shopping in a number of global destinations, they warned. 

High-end buyers would weigh the attractiveness of Malta as a jurisdiction against other destinations.

Developers behind some of these high-end projects shared a few of these concerns,...