On gentrification and the property market in a dynamic cultural city : the case of Valletta

Abstract

Analysis on the relationship between gentrification – the process through which urban transformation takes place rapidly, within a historically disinvested neighborhood – and real estate – both land and buildings – is lacking, especially within a specified urban context. It is well-established that property within a gentrifying city experiences an increase in value, however the relationship between the two is understudied. Apart from analysing the contributors to Valletta’s dynamic character, this study aims to investigate the manifestation of gentrification indicators on the property market, whilst identifying the presence of any real estate phenomena such as market sentiment. To outline the relationship between the gentrification process and the property market in Valletta, taken for a defined time period and considering key external factors, the study adopts a mixed methods approach. Apart from underlining the dynamic components of Valletta’s context, the results reveal a strong relationship between the chosen gentrification indicators and the increase in property prices over the years. Furthermore, first-hand studies undertaken as part of this research, suggest a positive response towards the hypotheses that several real estate phenomena, namely sentiment have occurred within the property market. The study further suggests that specific qualifications of gentrification might be more appropriate in view of the process which Valletta has been experiencing in the recent years.