Malta’s business-friendly tax structure and sunny Mediterranean climate have attracted international property buyers for many years. Demand for homes often outpaces the limited supply on the island, which is only 121 square miles.
“There is a lot of foreign interest,” Mr. Paris said. “There has been a big surge in prices.”
Prices have been rising steadily by more than 10 percent annually for the past two years, agents say. Demand is particularly strong for traditional homes and newer homes in the countryside.
“Today it is a very mature market,” said Ian Casolani, the managing director of Belair Property, a Malta real estate agency. “Properties are becoming harder and harder to come by.”
In recent years there has been a wave of new construction, particularly in apartments along the coast. The new apartment developments are attracting more international investors, many looking to offer the property as a rental.
“The rental market has exploded,” Mr. Casolani said.
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