Best February ever for residential property sales

Demand for property is expanding despite preferential duty schemes having been removed.

Last month was a record one for residential property sales, with residential property worth €262.7 million sold. This exceeds the values observed in the same month in previous years. Prior to the result achieved this year, the best February had been that of 2022, when total property sales were €254.3 million, or 3% below this year’s record.

It is worth recalling that, in February 2022, there were two preferential stamp duty schemes. There was reduced stamp duty on residential property purchased in Gozo, a scheme which had been running since 2017. But, more importantly, there was a reduced stamp duty scheme on all properties, which had been introduced in mid-2020 to offset the impact of the pandemic.

Although stamp duty this year is much higher than in February 2022, activity in the property market this February was €8.4 million better. This confirms the strength of demand for property, as it is expanding despite that preferential duty schemes have been removed. In contrast, in other European countries, property markets are facing issues, with house prices dropping due to lower demand.

The number of final deeds signed last February was 1,012. This was the fifth consecutive month in which more than a thousand property sales contracts were entered into. Official statistics indicate that it was not until December 2014 that more than a thousand sales contracts in a month were first observed. In fact, before 2013, on average every month around 712 property purchase contracts were entered into, or 30% less than the number observed last month.

Four out of ten properties purchased in February were apartments or penthouses, while a quarter of contracts concerned garages. The highest number of sales took place in St Paul’s Bay (85), followed by Mellieħa (44), and Birkirkara (42).  A total of 137 properties were sold in Gozo.

Value of residential property sold in February (€ million)

2018201920202021202220232024
163.7226.7192.2195.9254.3249.2262.7

Meanwhile, the prospects for the residential property market remain very bright, with 1,164 new promise of sale agreements signed last month. In the last 12 months there was an average of 1,131 promise of sale agreements per month, which implies that last month there was an acceleration in the number of such agreements. This means that further increases in property sales are expected in the coming months as those who signed these promise of sale agreements turn these into final deeds of sales.

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Albert Mamo
Albert Mamo
26 days ago

I FIND THIS HARD TO BELIEVE, WHEN ALL SURVEYS INDICATED A DROP IN SALES. PROMISES OF SALES WERE UP, BUT SALES WERE DOWN???💯👎🤔🤔

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