Covid19 is affecting all sectors of the economy in quite surprising ways. However, not all sectors are as weak, and there are still many reasons to be optimistic that the property in the UK will remain a viable asset during the current global crisis. The government is showing that it understands the needs of real estate investors and will support them in these difficult times. Although uncertainty over Britain’s has caused property prices to fluctuate for most of the half-decade, December 2019 elections facilitated confidence in the property market. This was reflected in the rise of prices in the UK property market. Also, the surge in pound value allowed international investors to benefit from British real estate. Mentioning additional charges for the future stamp duty of these buyers in the 2019 Traditional Party statement increased activity as people rushed to reach deals to avoid this potential additional cost.
Malta is a small island country in Europe. As this outbreak is affecting all the countries, Malta is also going to be affected by this pandemic. Thinking of how will the global crisis affect property prices in Malta? Well, it affects the property prices yet this market is quite flexible. According to the reports, property deals that were to be closed in the last month are still in progress. Thus, it can be assumed that we will not see a significant decrease in these purchases due to the fear of the epidemic. The question that arises here is to what extent the property market will suffer because of the social distancing order by the government. Property visits, dealership meetings, and contracts signing require a physical presence, so some fear that a lack of capacity to conduct such face-to-face meetings will reduce sales and thereby weaken the expected market revival. The property market has shown remarkable resilience in the face of economic uncertainty in the past.
An online real estate portal has reported a massive drop in buyers’ demand during this outbreak and anticipates a more drop in sales over the coming months. The markets are predicting a long pause in real estate transactions, and a significant decline, in which all things are equal, will cause the property prices to fall in Malta. Therefore, the biggest impact of COVID-19 in the real estate sector will likely be a change in economic activity, if social distancing continues. Tourist sites, islands and beaches will suffer greatly, at least in the short term. The purchase of properties abroad will mainly stop, at least temporarily. Housing prices in the city center will fall in European cities, with travelers making up a large part of market demand. The real estate agency model in which the individual shows the property to potential buyers personally is not possible temporarily.
If you are in search of properties for sale in Malta or are willing to sell a property during this period, it may not be a good idea. However, remember this is a temporary crisis, so be patient and hope for the best.