A thriving property market

The number of promise of sale agreements remains above the average since March 2013.

In March the number of promise of sale agreements was 1,177, 14% higher than the average observed since March 2013, when it stood at 1,030.  Compared to March of a year ago the number of signed contracts was 1% higher.

When looking at the number of promise of sale agreements signed for properties in Gozo, the amount was 109, or 23% lower than that observed in March last year when there was a cheaper stamp duty rate for Gozitan properties. However, while the removal of the reduced stamp duty led to a decrease compared to a year ago, when one looks at the period since 2013, the number of promise of sale agreements is virtually at the average, which was 113. Under a Nationalist administration, the monthly average number of promise of sale agreements in Gozo was only 40, or almost a third the amount observed last month.

Meanwhile, the number of promise of- sale agreements in the first quarter of the year was 3,502. It was only in the first quarter of 2021 that a bigger number of promise of sale agreements took place. In that period, in addition to the reduced stamp duty scheme on properties in Gozo, there was also the temporary stamp duty reduction on all properties introduced due to the pandemic.

The strength of the property market can be further understood from the fact that the total value of properties sold during the first quarter of the year was €832 million. This is 2.3% more than the previous year’s record. In the first quarter of 2019, i.e. before the pandemic, the value of properties sold had amounted to €690 million, or 21% less than this year.

In the first three months of the year, 1,474 apartments or penthouses have already been purchased, in addition to 752 garages and 328 maisonettes. A total of 442 homes were also bought – an average of 5 per day. The locality with most property purchases was St Paul’s Bay, with 270 finalised contracts, followed by 142 in Birkirkara and 116 in Mellieħa. The smallest market was Mdina, where there were no transactions, followed by Santa Luċija and San Lawrenz, where 5 properties were purchased in each locality.

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