https://timesofmalta.com/article/mercury-towers-penthouse-listed-22-million.1096239

OK, it's a 'villa in the sky'. The property features floor-to-ceiling windows, balconies, a home cinema, a gym, two offices, a library, a server room, and underfloor heating.

“The seller has taken the time to personally handpick the apartment finishes,”.

"The kitchen, for example, is finished with “Italian marble flooring and supreme high-quality timber.”

I also get that the citizenship programme is an incentive. But I don't think it's necessary to spend such a sum on a home for that – or is it?

Anyways, in my opinion, however beautiful the property itself is, isn't 'location, location, location' the mantra in real estate? And is Malta really a location worth €22 million? Not in my opinion. But I would really like to hear differing opinions.

by trumpeting_in_corrid

13 comments

  1. Literally only money-laundering. Nowhere, and I mean NOWHERE in Malta any property is worth 22 millions.

  2. Yeah no matter how beautiful the place is once you go out of it you’re smack in the middle of Paceville. The value should to down drastically haha 😂 Will be super pissed paying 22M to go out and see students vomiting and making a ruckus everywhere. I value peace and quiet too much.

  3. Money laundering or launderingn of money are kinda the first 2 things that come to my mind. But could also be money laundering…

  4. Speculation.
    Nothing more. Nothing less

    Worldwide, we‘d be much better off without property and housing speculation.

  5. They buy it as an investment, hoping the price goes up, in the meantime renting it out to companies fo events or whatever

  6. Theyre aiming for mega rich american investors… this is pocket change for them.

  8. As a real estate professional with 12 years of experience on the continent and 12 in Malta, I do not understand how most of the properties are priced as they are.

    Okay, the Mercury Tower was designed by Zaha Hadid and everyone in real estate knows her name and designs so it is more like a brand you are paying for and the unobstructed view. Also, it will be fully finished and equipped.

    But back to the Maltese standard properties. They are built and renovated below standards, using the wrong materials and not following the building rules. So, for me, even seeing a 300k apartment that needs finishing or further renovation is mind-blowing. An average sqm price for a shell apartment can be anywhere between 3k and 6k.
    I have renovated a peoperty last year where the purchase price was 5k but after the renovation it was 10k, with a tremendous amount of profit.

    Unique properties that are smartly designed using the highest-quality materials are rare. But Malta is not the type of country where I would personally spend my money on any kind of property.

  9. I love Malta. But if I had 22 million to drop on a house, I wouldn’t pick Malta.

  10. It’s money laundering pure and simple. The cut to clean money can be as high as 40 – 60%. So if a 22 million cash transfer is somehow approved by some bank for a transfer to the vendor to finance this acquisition, you might have a more realistic valuation of 10 – 15 million for the 800 square metre property in a future transfer.

    Now I would not pay this money either but many would, especially if the lot is split into 5 decent sized units with front terraces overlooking an excellent view. It’s true the street below is clubs and pretty raucous but once you put your car in the garage you are in a pretty insulated environment and the investment going into this area will gain a momentum of its own. I have some very cautious optimism that with so much money tied up here, we will finally be seeing some improvements in the next ten years. Politicians can’t be relied upon but when big business investment is involved , it’s a different matter

  11. People need to realize that tax avoidance is different to tax evading.

    If this apartment can be marked as a deductable it is essentially “free”.

    This is not money laundering, it is simply who is richer affords to keep getting richer.

  12. Most people here are thinking in real life terms. But property at that price is all about status.

    You’re paying 22 million so that you can point to the massive tower visible from a distance and say I have property there. It’s purely a status symbol.

    Money laundering is a possibility though.

  13. The people shouting money laundering really have no clue what they are saying. Yes, real estate is inherently risky when it comes to AML, but not more than any other country.

    The fact that Mercury Towers lies in SDA (Special Designated Area) means that Non EU buyers with no links to the country have full rights to purchase said property. This status is given by governments (The Lands Ministry). The same for Portomaso and a few other areas in Malta which have bene granted SDA status over the last decades. Without SDA status only Maltese and EU nationals would be able to freely buy property in Malta.

    This means that the market for the real estate is now open to super rich Arabs, Americans, Russian etc who have spare millions in their bank account who would rather invest it in brick and mortar.

    Yes though I do believe that the property is over valued

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