Co-founder of Island Properties, Cecil McCarthy sat down with iGaming Times to discuss the Maltese property market, together with its issues and a solution.
Due to the mass migration of foreign industry to Malta over the last decade, the local property market has seen both a boom and inflation. Because of this, the value of many Maltese-owned properties has risen but in turn, so have the prices.
What’s the issue?
Due to Malta’s significantly small space, the demand for real estate has become too large for the market to supply for. This is particularly seen within Malta’s main business and commercial district of Sliema and its surrounding localities. To combat this issue, developers have increased supply by building larger and higher than ever before. However, even this has lead to complications. The large scale construction of new apartment blocks has become a basis of political interest. However, what’s especially of concern to Maltese citizens is the knowledge that many existing properties remain vacant, unused, and of benefit to no one. It was this frustration that encouraged Cecil McCarthy, co-founder of Island Properties, to design a solution for the Maltese property market that would benefit all parties.
“From day one, foreign industries have based their offices in the same towns and cities of the island, therefore causing a significant increase in demand for property that the market was not yet ready to supply,” explained McCarthy. Such foreign industries, including those of iGaming, Finance, Blockchain and I.T, hold significance towards the Maltese Islands’ economic survival, seeing as there are no other natural resources besides that of human capital and power. It is therefore in Malta’s best interest to continue attracting foreign and local investment.
The Solution
“At Island Properties, our aim is to find unused and vacant properties in sought after areas of Malta. We offer to take the properties off their owners’ hands on a long-term lease of 5 to 10 years, and develop them to a standard able to suit future tenants.” Several clients have been seen to be working within the customer support level, especially from the Finance and the iGaming industry, with a large percentage being foreign. With most of the one bedroom apartments in Sliema costing around €1000 a month on average, the majority of these migrants are unable to afford living close to their place of work. This is where Island Properties intervenes.
“We give the foreign industry employees an opportunity to live close to their places of work and not having to waste too much time commuting, seeing as the Maltese public transport system is not the best,” stated McCarthy. More often than not, if a property costs €1000 a month, tenants have to pay a month’s rent as a deposit, an electrical and water supply deposit, and a commission fee towards agency fees. This adds up to approximately €2500 just in the first month of rental, and for most tenants, this is not feasible and could put them off moving to Malta altogether. “By renting one of our shared accommodations, tenants can pay less than half that amount. Also, we don’t charge agency fees,” explained McCarthy.
Through offering more affordable options, Island Properties provides a solution to these potential employees and raises the value of the rented accommodation for both its owners and the Maltese property market. Every apartment renovated and rented out by Island Properties leads to one less building that needs to be added to the island’s crammed skyline. Furthermore, at the end of the lease, the owner receives a fully restored apartment back.
“We’re offering a win-win solution for our clients, the owners, industries, and Malta,” explained McCarthy. “Vacant properties benefit nobody, especially with the high demand for low-cost properties. It is this issue that we’re trying to solve.”
For more information, click here to read the full article published by iGaming Times.
Island Properties offer a wide range of services, from sales and letting to property management and apartment sharing options. For more information on the services we provide, feel free to contact us on +356 2033 4455, email us at info@islandproperties.com.mt or send us a message on Facebook.
