Malta has become far more attractive as a place in which to invest in property that is then rented out, according to a new European study.
According to a study published by international payments firm WorldFirst, Malta is the second most attractive location for such investment. Ireland, which is also registering above average national economic growth, took the first place in the table.
The table showed that this year, an investor will make a 6.64 per cent return in Malta.
Comparing the cost of real estate and rental income yield, the table showed that average rental yields in Portugal (6.43 per cent), the Netherlands (6.27 per cent) and Slovakia (6.12 per cent) are deemed also to have a good return on investment.
On the other end of the scale, the worst place one can invest in a buy-to-rent property is Sweden, where rents are controlled by the government, a landlord cannot raise rates at will, and the average rental yield stands at 3.03 per cent.
The influx of foreigners to Malta has seen the rental market rise across the island, with average monthly rents doubling and in some areas even tripling over recent years.
The boom is not without its downsides - many locals are finding it difficult to keep up with the higher rates, while others risk being driven out of the market, with landlords preferring to rent their properties to foreigners who can afford to pay more.