Residential property rental rates dipped by 11% in the second quarter of 2020 when compared to the same time last year, a study conducted by the Central Bank of Malta shows.
According to the study, the drop in rates can be attributed to the ongoing COVID-19 pandemic and the subsequent containment measures implemented by the government which had the effect of “reducing demand for and increasing supply of rental units of the market.”
Despite the second quarter of 2020 showing the most significant decrease in rental rates, annual growth started to turn negative during the first quarter of the year, with the Central Bank study showing 3% and 3.5% lower rates when compared to the corresponding quarter of 2019.
In fact, another study conducted by property portal Djar.com and EY Malta found that prices had started slowing down before the pandemic even hit.
The database used to conduct the Central Bank study comprises 21,884 listings of advertised rental rates, and takes into account details concerning the type of property, location, size and other attributes that may have an impact on rental rates.
The study also sheds light on the current property market, revealing that most of the properties advertised in rent for Malta are two-bedroom (40%) and three-bedroom (46%) properties.
Around 12% of listings have only one bedroom while just under 2% come with four or more bedrooms.
Moreover, rental rates for two and three-bedroom units stand at around 35% and 65% higher than the benchmark on-bedroom unit.
The number of properties advertised as having a garage, garden or pool amounted to 3%, 1%, and 2%, respectively and property close to a seafront commands a 15% premium, while the availability of a garage carries a premium of 13%.
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