Today

Malta remains an excellent place to invest in property and the country may be the success story of 2008, says a property specialist.

Property investment site MaltaBuyProperty.co.uk has welcomed recent press reports highlighting an EC review of Malta - that sees strong economic growth continuing through 2008 and 2009, a reduction in unemployment, an improvement in public finances, and a continuing growth in domestic demand.

Ray Woods, managing director of MaltaBuyProperty.co.uk, said: "It is clear that the UK appetite for property investment is continuing. It is also clear that the Maltese economy is improving."

Malta's decision to join the EU and to adopt the Euro has provided a major stimulus to the economy. And according to Mr Woods, reductions in personal taxation and downward pressure on interest rates are likely to provide further stimulus to an economy that has struggled in recent years.

Meanwhile in the UK, instability in the financial services market shows no sign of deterring investment in foreign property, Mr Woods claims.

"Our own experience suggests that buyers are joining a 'flight for safety'," added Mr Woods. "We have seen an increase in the number of enquiries since last year. These seem to come from two kinds of buyer - those looking for safe and profitable places to invest; and others looking to improve the quality of their lives. Worries on those twin fronts about some countries, have led to renewed interest in Malta."

Malta is generally regarded as a safe place to invest. Its property market has always been primarily driven by domestic demand - so improvements in the Maltese economy are also likely to feed into the property market.

Despite it dependence on imports, Malta has largely weathered the increase in fuel costs, while reductions in personal taxation are likely to lead to an increase in disposable income.

Its location and strong language skills when combined with membership of the Euro are also likely to lead to an increase in inward investment.

These improvements in the economy follow on from increases in investment in the infrastructure largely financed by the EU, an increase in air flights to the islands and a reduction in flight costs.

Whilst the traditional package holiday market has declined, the reduction in flight costs has led to an increase in tourism - with increased interest in second homes and in short breaks fuelling overseas interest in property investment.