People paid very low rates for rentals in the past, economist Gordon Cordina has said on a recent conference on rents organised by the Malta Institute of Management, he warned that the government should not underestimate the impact of rising rental prices.
Policymakers should adopt a strategic approach to prevent bubbles, to maintain positive aspects of the sector and to help the vulnerable.
With the population forecast to rise to 600,000 within the next 15 years, the important thing was to go for quality that would endure once the economy started to level off or slow down.
The government has various options – such as extending development zones – that would moderate the cost of land.
Properties outside Sliema and St Julian's were now sought after, spreading the benefits across a wider group of owners.
The cost of rentals was increasing out of control, according to some Real Estate experts, while the lower end of the market was seeing increases, the higher end was actually levelling off.
One would need to bear in mind though that 60 per cent of the European market is unfurnished while most properties at Malta have very good inventories.
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