Malta’s growing economy and investment in new sectors continue to drive strong demand for commercial premises.
Several major business centres and office blocks have come on the market, increasing the supply of ultra-modern office space, with more developments in the pipeline, including in underserved areas like Valletta.
However, anyone looking into investing in office space should thread carefully. While demand for new developments remains strong, this has largely come at the expense of older office blocks, exerting downward pressure on prices. With the completion of new offices currently underway, along with the persistent popularity of hybrid work arrangements, there is no guarantee that the prices for top-end developments will remain high.
Therefore, while investment opportunities and market gaps certainly exist, and can be exploited by seasoned investors who know how to add value, this is one area where extensive research is essential.
That does not mean that there is no space for further development. Indeed, experienced investors confident of developing a new concept that will address market needs will almost certainly find a demand for it, and will likely be able to charge a premium rate.
Evidence for this can be seen in the chart below, showing that the maximum rent charged in many localities is far higher than the average.
