Property market sees steady growth in first months of 2022, but falling promises of sale could spell trouble

The strong performance of the local residential real estate market has continued into the first months of 2022, with property worth almost €740 million changing hands in the first quarter of the year, although a steep drop in promise of sale agreements may be a forewarning of a coming slowdown.

The value of sales registered represents an increase by 8.9 per cent over the same period of 2021. In total, 3,373 final deeds of sales were registered in January, February and March of this year, 2.9 per cent more than in the same months of last year.

The positive figures come despite a marginal slowdown registered in March, when the number of final deeds of sale relating to residential property amounted to 1,165, a decrease of 120 deeds, or 9.3 per cent, when compared to those registered a year earlier.

The value of these deeds totalled €249.3 million, 7.8 per cent lower than the corresponding value recorded in March 2021.

In March 2022, 1,113 promise of sale agreements relating to residential property were registered, a decrease of 535 agreements over the same period last year.

With regard to the region the property is situated in, the highest numbers of final deeds of sale were recorded in the two regions of Għawdex, and Ħaż-Żabbar, Ix-Xgħajra, Iż-Żejtun, Birżebbuġa, Marsaskala and Marsaxlokk, at 582 and 397 respectively.

The lowest numbers of deeds were noted in the region of Il-Birgu, L-Isla, Bormla and Il-Kalkara, and the region of L-Imdina, Ħad-Dingli, Ir-Rabat, L-Imtarfa and L-Imġarr. In these regions, 47 and 109 deeds were recorded respectively.

The highest annual increase was registered in the Ħ’Attard, Ħal Balzan, L-Iklin and Ħal Lija region, at 51.6 per cent. The second highest increase was noted in the region of Ħal Luqa, Il-Gudja, Ħal Għaxaq, Ħal Kirkop, L-Imqabba, Il-Qrendi, Ħal Safi and Iż-Żurrieq, a 34.8 per cent rise compared to the previous year.

In contrast, the largest annual decreases were observed in the two regions of Il-Birgu, L-isla, Bormla and Il-Kalkara, and Il-Mellieħa and San Pawl il-Baħar, with declines of 28.8 per cent and 18.1 per cent respectively.

Promise of sale agreements

In the first quarter of 2022, the number of promise of sale agreements reached 2,743, representing an annual decrease of 31 per cent.

The largest numbers of promise of sale agreements corresponded to residential properties situated in the two regions of Għawdex, and Birkirkara, Il-Gżira, L-Imsida, Ta’ Xbiex and San Ġwann, totalling 378 and 356 respectively.

The lowest numbers were noted in respect of properties located in the region of Il-Birgu, L-isla, Bormla and Il-Kalkara, and the region of L-Imdina, Ħad-Dingli, Ir-Rabat, L-Imtarfa and L-Imġarr. The first-mentioned region accounted for 55 agreements and the second for 87 agreeements.

The region of Il-Birgu, L-Isla, Bormla and Il-Kalkara saw the only annual increase in promise of sale agreements, with a 1.9 per cent rise. On the other hand, the highest annual decreases were observed in the two regions of Il-Mosta and In-Naxxar, and Ħ’Attard, Ħal Balzan, L-Iklin and Ħal Lija, which recorded declines of 50.8 per cent and 45.8 per cent respectively.

In March 2022, 1,113 promise of sale agreements relating to residential property were registered, equivalent to a 32.5 per cent decrease over the previous year.