Different factors affecting property prices in Malta

Abstract

Malta is currently facing a property boom and there is no standardly applied stable pricing model for property pricing. In this study a regression model was built, to estimate a fair price for a property when taking into consideration economic, geographic and logistical factors. This will be tackled by analysing how economic factors such as GDP, population, interest rates, wages, inflation and property characteristic have affected the property market since 2005 onwards. Data collected from real estate agencies and government institutes was assessed to arrive at a strong basis to predict the impact of economic factors on the property price index in Malta. The foundation built by this dissertation will help support future attempts to predict the patterns in the property market with concise and well structured hedonic regressions and time series analysis.