Malta could be the answer for property investors wary of buying in many parts of Europe where prices are predicted to stay on a downward spiral.

With tourism up 20% in recent months, a flood of inward investment and sustainable domestic demand for property, this small island in the Mediterranean is a good location for anyone looking for safe sustainable returns.

As the property market in the UK reaches an all time low for 30 years, investors are increasingly looking abroad. ‘It is true that the Sterling has, certainly for the time being, fallen against the Euro, effectively pushing up the price that has to be paid for Sterling buyers but despite this Malta is a good deal,’ said Ray Woods of Malta specialists ‘maltabuyproperty’.

‘We have helped a number of clients to buy properties in recent weeks utilising finance raised on Malta with the minimum of formality. And the outlook for property investment in Malta remains positive - with land in diminishing supply and both domestic and foreign demand growing.

‘This is no Spanish bubble waiting to burst and property laws provide good protection for both buyers and sellers,’ he added.

The increasing foreign investment into Malta would greatly help the market and the country is likely to see considerable growth in the future.

According to Home Affairs Minister Tonio Borg, as reported by the Times Of Malta, the country will do better when more foreign investment is seen. The property market, namely, will benefit from both economic expansion and financial expansion should more foreign investors get in line.

Several projects are in the works for various areas including development projects for Marsamxett, Grand Harbour and Stand in Sliema.

Malta is poised to become one of the Mediterranean’s most sought after real estate locations.

One area where property prices will soar is along the coast. Malta is one of several countries along the Mediterranean that has agreed to stop building within 100 metres of the coastline. This means the prices of the select properties along the coast already built which cannot be torn down will soar.

The Mediterranean island of Malta is benefiting from a huge regeneration programme in residential and commercial developments which is turning it into a chic place to visit and invest in.

It has not been hit by the credit crunch and property prices are rising with a lot of interest from the UK because it is English speaking and a visit by the Queen celebrating her 60th wedding anniversary last autumn raised its profile.

‘Malta is coming of age. It is fast becoming the cosmopolitan capital of the Mediterranean,’ said James Vassallo, senior manager for Tigne Point, a mixed use development with commercial and residential facilities which is part of a €450 million brown field regeneration programme.

The emphasis is on being environmentally friendly, pedestrian areas with no cars and using interior designers to add a modern look.

Since Malta joined the EU in 2004 there has been a huge amount of development and there was criticism that it was too much too soon with no thought going into long term planning. But now the government and developers are working together to structure the industry. In particular they wanted to look at attracting more business to the island to sustain development and not just rely on tourism.

A major part of this plan is the first Smart City in Europe which has just been launched to redevelop the Ricasoli industrial estate. Modelled on Dubai Internet City and Dubai Media City it is due for completion in 2021 and represents one of the biggest ever developments on Malta.

Dubai World is ready to take advantage of the global credit crisis to expand its business around the world and it is already looking at India and China.

The company believes that hotel projects, especially in emerging markets, make good investment sense.

‘We have been identifying locations in China. Goa is also going to be an important area. It is the holiday place in India and is going to be central to India’s tourism industry in the future,’ said chairman, Sultan Ahmad Bin Sulayem.

He also didn’t rule out investment in the US and explained that the company’s 50% stake in the Fontainebleau Miami Beach resort would not have been possible two or three years ago.

Affluent Indian property investors are buying property abroad as they see the global real estate slump as an ideal time to snap up bargains, according to industry agents.

Dubai is proving extremely popular as is the UK. In both countries prices have dropped and the markets are regarded as being full of opportunity, a London based broker has found.

‘The property slump is not just confined to India. Prices have crashed considerably in the US, the UK and the Middle East and many Indians are seeing this as an opportunity to buy property there,’ said Rajesh Goenka, chairman of Axiom Estates, the London based provider of property services in India.

He believes that high net worth Indian property investors are spoilt for choice. ‘Dubai is the hottest destination. Real estate prices were so steep that very few could afford property there. Now as the slowdown has hit the Dubai realty market also, rates are down by 30 to 50%,’ Goenka said.

Syed Mazaz, the Mumbai representative of Dubai-based real estate brokers Better Homes has also noticed an increased number of inquiries from Indian investors. ‘Buying property in Dubai attracts no government tax and even if you put your property on rent, the income is completely tax-free,’ he said.

According to him, property prices in Dubai are comparable to those in Delhi or Mumbai. ‘I’m getting many more enquiries and about one-third of them end up buying a home in Dubai,’ Mazaj said.

In Europe, Britain is the favourite destination for Indian property investors. ‘We alone are receiving at least 100 queries for the UK every week,’ Goenka said. Two bedroom apartments are proving the most popular.

Countries such as Singapore, Mauritius, Thailand and Malaysia where prices have dropped up to 40% in recent months are also attracting Indian investors. Some are buying for children who are studying abroad but according to Jaideep Singh, head of the India desk at global property consultant Knight Frank there are more who are buying second and even third properties as holiday homes.

‘People are buying property abroad because these are even cheaper than in India, which makes it perfect for getting a second, or a third home,’ he explained.

Istanbul is the most promising city in terms of real estate growth, according to the report conducted by 400 European real estate specialists. The results of the report regarding the Turkish real estate sector include that Istanbul ranks among the top cities and is the most promising city in terms of growth. Another result is that investments from Europe are flowing toward eastern and central Europe, and Turkey is among the countries watched by investors. Istanbul stood at No. 11 in the report’s risk/yield ranking, climbing up eight places in 2008.

Urban transformation projects are expected to be the most active area of Istanbul’s real estate sector this year, said the report.

Dubai-based website 7Days reports that Turkey provides attractive investment options to foreigners looking to catch a promising market from the start as Turkey is on the threshold of becoming a mainstream international holiday destination.

Turkey represents strong investment potential with its pristine beaches and climate makes it a very popular and well tested tourist destination.

Inexpensive, long summers and hassle-free lifestyle make it a hot favorite holiday destination for Europeans.

The development in Bodrum’s tourism has a deep impact in the property market. Investors are reporting good yields and inherent capital growth.

The Bodrum Peninsula region is a crucial one for Turkey in terms of property investment. It’s established amenities and location near to an international airport means consistent high amount of tourists and one of the brightest property investment hot-spots. Property prices are very competitive and may increase rapidly with the introduction of more flights.

Experts feel that this is the ideal time to invest into the Turkish property market. Turkey is the third most attractive overseas property investment destination for Britons looking to buy abroad, according to a study carried out by ‘A Place in the Sun’ magazine.

Experts believe that Turkey’s property market has tremendous growth potential and the strength of investment climate in the country is good.

Rhiannon Williamson, director of ShelterOffshore.com said that Turkey’s promising improvement as holiday destination has opened vistas to many foreigners choosing to invest in the country. Turkey has been highly sought after as a holiday destination makes property market in great demand and Turkey itself is at the threshold of a predicted property boom.

Ms Williamson further added that 25 million tourists are expected to flock around in turkey this year has added to the awesome interest in properties in Turkey.

She said that Turkish property offers mammoth potential for returns on investment and Turkish government promotes investment of foreigners. Changing policies from the government are clear indications that will greatly increase capital growth for today’s property investments.

Turkey is the third most attractive overseas property investment destination for Britons looking to buy abroad, according to a study carried out by ‘A Place in the Sun‘ magazine.

Property prices are expected to start a rapid acceleration in Istanbul. Everything is perfect for the investors to invest in this major metropolis.

The Chamber of Istanbul Public Accountants and Financial Advisors (Ä°SMMMO),
Done a research titled “Turkey doubles its Value,” states that investment in land became good investment vehicles for investors as it yields are more than that of gold. The study notes that gold prices witnessed more than three-and-a-half times rise, and inflation three-fold. Meanwhile, the price of residential spaces has increased 7 to 20-fold post 2001 economic crisis. The study showed that the construction sector is forging ahead, the rental costs of office spaces have also surged upward and a massive 120 percent increase in the last three years.

Istanbul’s Pendik Velibaba, BaÄŸcılar and BaÅŸakÅŸehir districts offer cheapest housing YTL 1,000 per square meter .property investors can buy a home in Istanbul for between YTL 80,000 and YTL 90,000 ($68,400-77,000) and those were being sold for between YTL 7,000 and YTL 10,000 ($6,000-8,500) in 2001-2002 .Istanbul Real Estate ranks the highest in terms of total returns mainly due to expected capital appreciation on property in Istanbul. Prestigious new builds have become quite popular in the last few years. The cost of residences were 100,000 ($86,000) three years ago, and now priced more than YTL 300,000 ($257,000).The luxury comes at a price as One square meter of the lofts apartments can go for $10,000 today.

Prices of office premises has soared up as more number of foreign businesses are establishing bases in Istanbul and all professionals and workers who in turn require respectable accommodation to buy and let. This demand fuels the investment and excitement among investors, inflating rental yields and pushing up residential and office property prices.

Denizbank launched new schemes in tie-up with realty world offices as it foresees Turkey as a good opportunity for investment and the second-hand property market in turkey is gaining momentum.

Denizbank grants housing loans with low interest every month on the 9th, 19th and 29th days while Realty World offices offer the opportunity to own a house at reasonable prices by making a reduction in the on the ninth, 19th and 29th days of every month while Realty World offices reduced their commission ratios in order to offer the opportunity to own a house at reasonable prices for the consumers resulting in increased consumer credits .Arif isfendiyaroglu, AM of Denizbank Retail Banking Group has said that The Turkish property market is growing and buyers are making their Turkish real estate dreams really pay off as potential high returns are in store. So denizbank took an initiative to tie-up with realty world and to have a strong stranglehold of housing finance in turkey and to strengthen their position in housing finance by offering an innovative approach to the real estate sector. Denizbank’s 75% shareholder dexia, also has a significant influence in housing finance. This business collaboration of denizbank with influential brand names of international acclaim makes it unique.

Hilmi Iskoren, CEO of Realty World Turkey has said that the real estate sector is currently turkey’s most prominent sector in terms of monetary benefits. Realty world believes that their advertising campaign for the Turkish customers to buy property will be a huge success.