I’m writing my August articles whilst on a working holiday in Malta – Gozo to be precise. Chesterton has recently opened an office in Malta and I am here to lend support, build some cross referral business and learn about the Maltese property market (as well as having a holiday).

Malta has some 450,000 inhabitants and covers an area fifty times the size of Gibraltar. Until Chesterton opened its doors a few weeks ago, there was only one other international real estate agency represented, which I thought was quite surprising given Malta’s size and growth in recent years. Probably explains why Chesterton has taken the plunge.

As you would imagine, property costs in Malta are generally lower than Gibraltar. Of the new residential properties I visited, Tigne Point, a mixed use development in the business district surrounding Valletta, with a new and already successful shopping centre at the epicentre, stood out as the most interesting. The final apartments of the most recently completed phase are being sold by the developer at around €3,500 per sq m (plus or minus, say 20% depending on views and elevation). Compared to Ocean Village or King’s Wharf, probably Gibraltar’s equivalent, Tigne Point is around one third cheaper. Construction has begun on the next residential tower and on the office block. Sales have not been launched yet despite the demand. That fact demonstrates confidence and obviously sufficient funding behind the developer, because to unlock bank funding in this climate, one would normally expect a number of off-plan sales to have been concluded first to reduce the developer’s risk.

Viewing these brand new apartments, it seemed odd that no kitchens were supplied, just a couple of taps on the wall and a lot of plug points. The first occupant has to buy the entire kitchen, which I understand is the norm in Malta.

The stand out office development has to be Smart City, adjacent to the sea and minutes from Valetta across the bay (albeit a fifteen minute drive around it) with wonderful sea views. Here the Maltese Government has entered into a joint venture with Tecom Investments (part of the Dubai Development Agency) to create a “knowledge city” being built on a 360,000 sq m site, encompassing high end office space together with hotels and residential areas, all centred around communal pools, bars and restaurants.

The first offices, being occupied now, are truly impressive. And at less than €250 per sq m per annum (for leases up to 5 years), are also very good value. In Gibraltar, the smarter offices are now achieving above £300 per sq m per annum.

But what really caught my eye at Smart City, was the Maltese Government’s ‘One Stop Shop’ office on the ground floor, where incoming companies and residents alike can apply for all the necessary permits and visas and licences to be able to operate from Malta within a minimal time period and seemingly, minimal hassle. What a great idea to entice inward investment. Smart City is probably not unlike the Canary Wharf concept when it was first built, a bit out of the way and it will take a few years to build the entire concept, but once there is critical mass, it will most likely flourish.

Over the next few years, I anticipate further trips to Malta as we expand our property business. In case you need an idea for a different holiday destination, try www.bamboofarmhousegozo.com in Gozo. We are having a marvellous time. Happy holidays!