Economic growth, excess liquidity in the monetary markets, increased government spending, low cost flights and increasing buyer confidence are some of the factors which are expected to make 2007 a very good year for the property market according to Frank Salt Real Estate managing director, Joseph Lupi.

Mr Lupi was addressing the company’s annual general conference held on Tuesday at the Capua Palace, Victoria Hotel in Sliema.

Mr Lupi gave a general overview of the general market conditions that prevailed in 2006 and of the company’s operations during the year.

The company registered growth all through its operations particularly in the sale and letting of residential and commercial property in all its branch network. The company has increased its market share in sales to first time buyers and second time buyers while retaining its share of sales to foreign buyers.

Sales to foreign buyers registered an increase when compared to the previous year, especially during the last quarter of the year. “We are pleased to note that the government finally opened its doors to low cost carriers last year,” Mr Lupi said. “This already led to an increase in interest in Malta property and more is expected this year,” he said.

Mr Lupi also gave a brief analysis of the properties available on the market for sale, emphasising the fact that there is a good mix of properties currently on the market and others which should be coming on the market this year to meet prevailing demands.

Mr. Lupi totally disagreed with those who say that we will have a “glut” of unsold properties on our hands. “As long as we build properties that buyers want and buyers’ expectations are realistic, I cannot see any problems. In addition we should also try to attract foreign buyers both as permanent residents and holiday home owners. These factors should guarantee a sustainable and healthy property market,” he said.

With regard to recent claims that there are no properties for first time buyers because prices have gone up too much, Mr Lupi said, “Property, like any other assets appreciates every year and this will continue to happen in a free economy market. The problem lies in the expectations of today’s first time buyers, which need to be in line with today’s realities.

We have over 1,500 properties on our database which could be suitable for first time buyers and others are expected to come on the market this year,” he said.