Real estate worried over freeze of permanent residency applications

Frank Salt director Joe Lupi has called to attention the worrying freeze on the permanent residency application at the real estate company's annual general meeting.

"It is good to see that the British are once again looking at buying or renting in Malta. Notwithstanding the adverse housing market in the UK, the drop in the value of the Sterling against the Euro and other negative factors, the British are ever more eager to buy property in Malta, and possibly even more than before, with the majority strongly considering the option of relocating to the islands.

"What is worrying is the fact that government has recently frozen the permanent residency application process until further notice," Lupi said.

He added that the freeze comes at a time where slow recovery is being made and jeopardises the recovery of the industry.

The permanent residency scheme allows foreign nationals to take up residency in Malta subject to meeting strict criteria. The scheme has been temporarily halted and is currently under review, having led to loss of business in the property market.

Frank Salt's overseas operations recorded the largest increase in business activity with strong interest from the UK, South Africa, Western Europe, Russia and the Scandinavian market.

Lupi said that there has been an increase over 2009 figures mainly attributable to the favourable home loan interest rates, the extensive choice of value properties and the increasing demand for buy-to-let properties. Second time buys had also increased marginally and the average value of properties also improved in 2009.

2010 also saw the opening of a new branch for Frank Salt Real Estate, dedicated to residential letting and commercial property. Awards for best sales and letting consultants and best branch were won by the letting division of Frank Salt Real Estate.