Is buying a property in Sliema a good investment?

Last updated on December 29, 2023

Yes, the analysis of Valletta's property market is included in our pack

If you've appreciated the seaside beauty and urban convenience of Sliema, you might think about investing in property in this charming part of Malta.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Malta, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Sliema?

Sliema, a town located near Valletta, Malta's capital has steadily emerged as a highly desirable location for property buyers, and there are several reasons for this trend.

First and foremost, Sliema offers a unique blend of urban convenience and scenic beauty. Unlike some other areas in Valletta, which are primarily known for their historical significance, Sliema presents a more contemporary lifestyle.

Its coastline is dotted with public gardens, beaches, and a promenade popular for walks and outdoor activities, making it a refreshing contrast to the more densely built areas of Valletta.

Historically, Sliema started gaining popularity as a residential area in the late 19th and early 20th centuries. It was initially a fishing village and a summer retreat for the wealthier residents of Valletta.

Over the years, it has evolved into a bustling commercial and residential hub. This transformation has continued to gather pace, especially in the post-2000 era, with the development of modern apartments, retail outlets, and leisure facilities.

The sustained interest in Sliema suggests that its popularity is more than just a passing trend. This is backed by its consistent property value appreciation and demand, making it a sound investment for many.

The kind of people attracted to Sliema is quite diverse. It appeals to both local and international buyers, including expatriates who prefer a cosmopolitan environment.

Young professionals and families are drawn to Sliema for its modern amenities, vibrant nightlife, and proximity to schools and businesses.

Additionally, retirees find the area appealing due to its relaxed coastal atmosphere and the availability of convenient services.

However, like any location, Sliema has its drawbacks. The rapid development and influx of residents and tourists have led to concerns about overcrowding and traffic congestion, particularly during peak hours and tourist seasons.

Moreover, the focus on modern development has sometimes been at the expense of historical preservation, leading to a loss of some of the town's traditional character. This modernization has also led to an increase in property prices, making it less affordable for some buyers.

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Why is Sliema a nice place to live?

Sliema is often celebrated as a desirable place to live for several compelling reasons.

The lifestyle and culture in Sliema are a unique blend of traditional Maltese charm and modern cosmopolitan living. This area is known for its bustling seafront promenade, which hosts a variety of cafes, restaurants, and shops, offering a lively yet relaxed atmosphere.

The expatriate community in Sliema is significant and thriving. Many expats are drawn to this area due to its English-speaking environment, the pleasant Mediterranean climate, and the ease of integration into the local community. This presence of a diverse international community contributes to the area's vibrant and inclusive cultural scene.

Living in Sliema can be relatively expensive compared to other parts of Malta. This is partly due to its popularity and the high demand for property in the area.

The cost of living encompasses aspects such as housing, which can be pricier, especially for properties with sea views or modern amenities.

Safety is a key consideration for anyone looking to settle in a new place, and Sliema is generally regarded as a safe place to live. The crime rate is relatively low, and the town has a peaceful atmosphere, which adds to its appeal for families and individuals alike.

In terms of amenities and facilities, Sliema is well-equipped. Educational institutions like St. Clare College Primary School Sliema and Sacred Heart School offer quality education.

For healthcare, the nearby Saint James Hospital provides medical services. Shopping needs are catered to by The Point Shopping Mall, among others, which houses a variety of stores and eateries.

The quality of infrastructure in Sliema is generally good. The roads are well-maintained, although traffic can be heavy during peak hours. Utilities and services such as electricity, water, and waste management are reliable.

Internet connectivity in Sliema is excellent, with several providers offering high-speed options, catering well to the needs of both residents and the business community.

Accessibility is another strong point for Sliema. It is well-connected to other parts of Valletta and the rest of Malta. The town is a short drive or bus ride away from Valletta, making it convenient for those who work or wish to visit the capital.

The Malta International Airport is also easily accessible via a short car or bus journey, providing connectivity to various international destinations.

Public transportation in Sliema is efficient, with a comprehensive network of buses that connect it to different parts of Malta.

Additionally, the Sliema ferry provides a scenic and convenient way to travel to Valletta, adding to the charm and practicality of living in this area.

How much does it cost to buy real estate in Sliema?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Malta.

Buying a property in Sliema can vary in cost depending on several factors, including the type of property and its location.

In Sliema, you'll find a range of residential properties such as apartments, traditional townhouses, and luxury villas. Apartments, particularly those offering sea views or located near the promenade, are in high demand due to their modern amenities and proximity to the coastline.

These properties attract both locals and international buyers, including expatriates, who are drawn to the area's vibrant lifestyle and scenic beauty.

The real estate market in Sliema predominantly features resale properties, but there are also new developments that cater to the growing demand for contemporary living spaces.

These new developments often come with added amenities like swimming pools, gyms, and underground parking, making them particularly attractive to potential buyers.

When it comes to pricing, properties in Sliema are on the higher end compared to other parts of Malta. The price per square meter can vary significantly.

For instance, a standard apartment might cost a certain amount per square meter, while luxury properties or those with sea views can command much higher prices. It's important to note that these figures can fluctuate based on market conditions and the specific characteristics of the property.

Over recent years, property values in Sliema have generally seen an upward trend. This increase is attributed to the area's popularity, ongoing development, and its appeal as a tourist and expat-friendly location.

Looking forward, any upcoming developments or city planning changes can impact property values. For example, new luxury developments or improvements in infrastructure can increase the desirability of the area, potentially leading to higher property values.

Predictions for the real estate market in Sliema in the coming years remain optimistic. The area's continuous development, combined with its status as a prime location in Malta, suggests that property values are likely to remain stable or even increase.

Factors such as Sliema's desirable coastal location, its blend of traditional and modern living, and the ongoing demand for properties in the area are indicators of potential increases in property value.

For anyone considering investing in Sliema's real estate market, these factors are worth considering. The blend of lifestyle, location, and the type of properties available make Sliema a unique and potentially lucrative investment opportunity in Malta's real estate market.

However, as with any property investment, it's advisable to conduct thorough research and consider the market trends and future developments in the area.

Where is the best area to buy a property in Sliema?

Identifying the best area to buy a property in Sliema, largely depends on what you're looking for in terms of atmosphere, property types, and budget.

Sliema's waterfront, particularly the areas around Tower Road and the Promenade, is highly sought after. Here, you'll find a lively atmosphere with easy access to cafes, shops, and restaurants, not to mention stunning sea views.

Properties in these areas tend to be more expensive due to their prime location and often include modern apartments and penthouses. If you're seeking a vibrant lifestyle and don't mind the hustle and bustle, this could be the place for you.

In contrast, the inner parts of Sliema offer a quieter, more residential feel. Streets like Tigne and Ghar id-Dud are a bit more secluded and less touristy, making them ideal for those who prefer a more relaxed environment.

The properties here are a mix of traditional Maltese townhouses and newer apartment complexes, often at slightly lower prices compared to the seafront properties.

For those looking at investment or potential growth in value, the areas undergoing development can be particularly interesting.

Up-and-coming areas in Sliema, like those near the Sliema Ferries, are seeing new developments, which might offer more modern amenities and could be a smart choice for long-term investment. These areas are transforming, blending the old charm with new constructions.

When it comes to areas where it might be less advisable to invest, it's worth considering the parts of Sliema that might be prone to overdevelopment or those that have lost some of their traditional Maltese character due to rapid modernization.

Some streets farther from the seafront might not offer the same appeal in terms of views or accessibility to Sliema's vibrant lifestyle, which could affect future resale value or rental appeal.

Ultimately, the best area to buy a property in Sliema depends on your personal preferences, lifestyle needs, and investment goals. If you're looking for a dynamic, urban environment with easy access to amenities and sea views, the waterfront and central areas are ideal.

However, if you prefer a more subdued, residential setting, then exploring the inner parts of Sliema could be more rewarding.

As with any property investment, it's essential to consider not just the current state of the area but also its potential for future development and growth.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Malta.

Area	Atmosphere	Property Types	Price Trend
Waterfront (Tower Road, Promenade)	Lively, tourist-friendly	Modern apartments, penthouses	Higher
Inner Sliema (Tigne, Ghar id-Dud)	Quieter, more residential	Mix of traditional townhouses and new apartments	Moderate
Up-and-coming areas (Near Sliema Ferries)	Transforming, blend of old and new	New developments, modern amenities	Potential growth
Far from seafront	Less vibrant, more subdued	Varying, possibly less modern	Lower, varies

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Is there a strong rental demand in Sliema?

Sliema indeed experiences a strong demand for rental properties.

The demand can be attributed to both short-term and long-term rentals, each catering to different demographics and needs.

Short-term rentals in Sliema are particularly popular among tourists and visitors. Given its scenic waterfront, vibrant lifestyle, and proximity to Valletta, Sliema is a favorite for holiday-goers. These renters often look for properties that offer ease of access to local attractions, restaurants, and leisure activities.

Therefore, apartments and penthouses, especially those with sea views or situated near the promenade, are highly sought after for short-term stays.

On the other hand, long-term rentals cater to a more diverse demographic, including expatriates working in Malta, families, and individuals seeking a cosmopolitan lifestyle.

The target tenants often include professionals working in the nearby business districts, digital nomads, and retirees from various countries, drawn to Malta for its climate, lifestyle, and English-speaking environment.

These renters typically seek comfortable and well-located apartments or townhouses, with a preference for modern amenities.

In terms of specific areas, the waterfront and central parts of Sliema are highly desirable for both short-term and long-term rentals due to their accessibility and vibrant atmosphere.

However, areas a bit further from the seafront, offering a quieter setting, are also attractive for long-term tenants who prefer a more relaxed environment.

To reduce vacancy rates and enhance rental appeal, properties with certain amenities are more favorable. Features like air conditioning, high-speed internet, modern furnishing, and access to a swimming pool or fitness center are significant draws.

Additionally, properties that provide parking facilities are also in high demand, considering the busy nature of Sliema.

Regarding potential returns on investment, properties in Sliema can yield attractive profits. The exact numbers depend on the property's location, size, and amenities, but rental yields in prime areas can be compelling.

For instance, modern apartments in central locations might offer higher returns due to their appeal for short-term rentals, while larger family homes might attract stable long-term tenants.

Looking at future trends, properties that combine modern amenities with unique features, such as a balcony or terrace, sea views, or newly renovated interiors, are seeing increasing demand.

Such properties not only cater to the aesthetic and comfort preferences of potential tenants but also stand out in the competitive rental market of Sliema, potentially offering better yields.

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Is it easy to buy a property as foreigner in Sliema?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Malta.

Buying property as a foreigner in Sliema, which is near Valletta in Malta is generally straightforward, but there are specific regulations and considerations to be aware of.

Firstly, Malta does have regulations concerning property purchases by foreigners. For instance, in certain areas, including Sliema, non-EU citizens might need to obtain an Acquisition of Immovable Property (AIP) permit.

This process involves certain criteria, like minimum property value thresholds, which can vary depending on whether the property is an apartment or a house. EU citizens who have not resided in Malta for a minimum period (typically five years) are also subject to similar restrictions.

However, these regulations are generally manageable and do not pose a significant barrier to serious investors.

The purchasing process in Sliema involves several steps, starting with property selection, negotiating the price, and signing a Preliminary Agreement (Promise of Sale), which usually requires a deposit (commonly 10% of the purchase price). This is followed by a due diligence period, where searches and checks are conducted.

Finally, the Contract of Sale is signed, and the balance, along with taxes and fees, is paid.

One of the primary risks associated with property investment in Sliema is the potential fluctuation in property values. Like any property market, prices can go up or down based on various factors, including economic conditions and developments in the area.

Additionally, there's the risk of buying a property with hidden legal or structural issues, which underscores the importance of thorough due diligence.

A classic pitfall, unique to Malta, is overlooking specific legalities tied to Maltese property law. For example, issues related to 'UCA' (Urban Conservation Area) status of properties, ground rent conditions, or heritage property regulations can be overlooked. These aspects can significantly impact future renovations, property value, and resale potential.

Working with a local real estate agent or lawyer is highly advisable. They can guide you through the complexities of the local property market, help navigate legal requirements, and ensure due diligence is thoroughly conducted.

Their knowledge of the local market dynamics, legal intricacies, and negotiation skills can be invaluable in securing a favorable deal.

Common exit strategies for property investors in Sliema include selling the property for capital gain or renting it out for income. The rental market in Sliema is generally robust, thanks to its popularity among expats and tourists, making it a viable strategy for investors.

Alternatively, some investors choose to hold onto their properties for personal use, particularly if they're looking to relocate or retire in Malta.