21,300 konvenji benefitted from low stamp duty

Official data shows that till November, more than 21,300 promise-of-sale agreements have benefitted from the reduction in stamp duty that was announced as part of the economic regeneration plan of June 2020.

This shows that the measure has benefitted tens of thousands of individuals, with the result that Malta at present has the highest rate of home ownership in history. This instead of facing the mortgage foreclosures and housing issues that had been predicted at the start of the pandemic.

Last November, 1,324 contracts were signed for the sale of residential property, for a total value of €293 million. This marked the twelfth consecutive month in which the value of the property sold has increased on a year-on-year basis. In fact, last November the value of purchased properties was 64% higher than in November 2020.

Before the stamp reduction measure was announced, the number of contracts signed had fallen to only 552, with a value of just over €100 million. This means that last November activity was almost three times higher than before the economic regeneration measure was taken last month.

Almost 13,000 sales contracts were signed in the first 11 months of 2021, against just over 9,900 in 2020. In the first eleven months of the year, residential property worth more than €2.8 billion was purchased. This is almost €350 million more than the amount purchased in 2019, or nearly one eight higher than before the pandemic. 

Almost 13,000 sales contracts were signed in the first 11 months of 2021, against just over 9,900 in 2020.

Moreover, the outlook for the property market remains quite positive. 13,379 promise-of-sales agreements have been made in the first eleven months of this year. This is much higher than the 10,900 promise-of-sales agreements signed during the same number of months in 2019, before the pandemic. This means that for every four promise-of-sales agreement signed in 2019, five have been signed this year.

This development is not just expected to further increase Government revenue from this important sector. It will create a significant boost to domestic demand, leading to substantial sales of furniture, appliances, and furnishings.

Similarly, the various persons employed in the home finishing sector, such as electricians and plasterers, can look forward to very strong business in the coming months.

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