Flights of fancy

Low-cost airlines have opened up Malta's luxurious, laid-back lifestyle to all, writes Laura Latham in the UK Independent:

..Malta's location at the heart of the Mediterranean has guaranteed it a special status. For centuries, the island was fought over by European armies, and it was only given independence by the UK in 1964. It's now seeing an invasion of property buyers taking advantage of its year-round sun, pretty beaches and cosmopolitan culture...After ownership restrictions were relaxed for EU citizens, buyers moved in, snapping up old townhouses, restoration projects and seafront apartments, sparking a development boom and a hike in property prices. "Prices rose 40 per cent over two years," says Anna Farrugia of Harlon Property. "After years of the property market being static, it was too quick." But it didn't stop Malta and its sister island, Gozo, being sought after by those looking for a Med holiday home.

Prices have settled down to appreciation of around 10 per cent, but that may change. "When you get low-cost airlines, you get people buying for investment," says Vanessa Lupi of local agency Frank Salt. "It's also easier for those who buy for their own purposes, since their holiday homes will be more accessible." A programme of new development is bringing a variety of sophisticated accommodation into existence. The residences on the waterfront at Saint Julian and Sliema sell from £100,000 for a one-bedroom apartment without a sea view, but can go up to £500,000 for a frontline pad with three bedrooms, incredible views and often a private yacht mooring..

Gozo has a more rural feel. The island's homes are pretty stone houses with walled gardens and swimming pools, which are very popular with tourists. "Gozo is better value for farmhouses," says Farrugia. "You can find unrestored houses with two bedrooms for £120,000." A restored property of this type would cost more than double that. But Lupi warns: "Gozo doesn't suit everyone because of its aura of tranquillity."...But Lupi discounts fears that Malta will become like overdeveloped Spanish or Portuguese resorts. "Malta and Gozo can't be compared to places like Spain and Portugal. When people buy here, they buy much more than just the property, they buy the lifestyle."