Analysis of residential property market value : Rabat (Malta) and its surroundings

Abstract

Literature and statistics show that during the last 25 years, during the last decade in particular, the local residential property market value has increased dramatically. Malta has recorded the highest percentage rise in property value in 2004 amongst the European Union (EU) Member States. As a result the market value of property has been of concern to stakeholders including architects, buyers and developers and to the Maltese public in general. The property market is often described as the interaction between supply and demand and hence the value is determined by this interaction. The first part of this dissertation outlines the factors which have affected the national property market value and their direct bearing on the market value is evaluated. It also analyses the property market value from a micro level perspective, focusing on the locality of Rabat (Malta) between 1995 and 2006. The analysis is based on an interpretation of transactions held within the residential property market during 1981-2006 in Malta in general and in Rabat specifically. The manner in which this change in property value was reflected in the different housing typologies is examined. This is done in order to provide a detailed representation of the market value by housing typology, including, apartments, maisonettes, terraced houses, houses of character, townhouses as well as semi and fully detached villas that are currently found in Rabat. Rabat, being an old urban core surrounded by a vast rural area offers more detailed information about how the property market value can differ in different zones. The results obtained are interpreted and future market predictions are formulated.