During the company’s annual general meeting held earlier this month, Frank Salt Real Estate reported a good year throughout its operations during 2005.

Managing director Joseph Lupi, gave a brief outline on the general market conditions prevailing during the year, an analysis of each of its company’s operations, and announced plans for the current year.

The year started with slow market activity mainly due to the general economy in the country, which unfortunately did not pick up during the first six months. Buyers’ confidence started to pick up after the first quarter with sales improving at a steady rate after May. The foreign property market although still very active, showed a marginal drop when compared to 2004, particularly sales to foreigners buying property for holiday purposes. As in previous years, the majority of foreigners who bought property during the year were from the UK (71 per cent). On the other hand the company noted increasing activity in the Letting and Commercial property market.

It was also noted that property prices stabilised during the year, mainly attributable to an increase in the supply of properties coming on the market, which included a number of small and medium sized developments as a result of new height regulations announced by MEPA during the year.

Mr Lupi announced positive results throughout the company’s network of offices and overseas associates, which, despite the slow start of the year, compared very well with the previous year’s projected targets. The company has retained its market share both for first time and second time buyers while increasing its sales of investment property both to local and foreign buyers.

Sales to foreign buyers for holiday purposes have dropped by 10 per cent while sales by those taking up residence have increased. “I am convinced that once Malta opens its doors to low cost carriers, sales for holiday purposes will explode as in fact happened in competing countries. Studies have clearly shown that sales to holiday buyers and investment buyers have shot up where these low cost airlines operate. It is a pity that we are losing out on this much needed investment in our economy,” Mr Lupi said.

The company registered a significant increase in activity in its Letting Departments throughout its branches, the Property Management Department, the After Sales Consultancy Department and the Commercial Property Department.

Mr Lupi also outlined the activity of the Marketing Department which was extremely active during the year with both local and overseas campaigns. “We spend thousands and thousands on marketing every year, but this is a drop in the ocean when compared to what competing countries spend on promoting their properties,” said Mr Lupi. “It is about time property developers realised that it is important, that while they invest millions in their developments, they have to budget a substantial part for marketing the developments, especially if they wish to target foreign buyers. The market out there is enormous, competition is increasing everyday and, believe it or not, there are some buyers who hardly ever heard of Malta. This year we expect to have a good number of large scale developments coming on the market and we all have to create a demand to meet this supply of property to ensure a sustainable and healthy market.”

Last year the company received one of the prestigious Bentley International Property Awards for Best Real Estate Agency 2005. “The award is proof of our company’s commitment to the high level of quality service, which we have been providing to our clients, both local and foreign, for the last 36 years,” Mr Lupi said.

Mr Lupi also harshly criticised a number of operators in the property market who, he said, “call themselves estate agents but unfortunately provide a very unprofessional service thus giving a bad name to our industry. We are not worried about competition because that is healthy, but it is not right that some of these give the impression that the service they give is for free when in fact they charge owners a three per cent commission once the property is sold. This for simply advertising the property with the owners’ telephone number. For a small additional cost, the buyer and the seller would have a much wider choice of properties and buyers plus the service of a professional real estate consultant and negotiator through an estate agent. Both buyer and seller expect to be given a professional service, if they are paying for it.”

Mr Lupi was very optimistic on how the market will perform during 2006. The company plans to invest in further expansions of it operations, including a new office on the Sliema sea front, as well as increase its workforce to be able to meet expected demands.

As the end of the meeting awards were handed out for the Best Branch of the year, to the St Julian’s Branch plus Best Salespersons to Marisa Camilleri, Kris Grima and Carmen Azzopardi.