DHALIA

The Time for Quality

For everything there is a time prescribed and now, according the Dhalia CEO ALAN GRIMA, is the time for quality. Showcase Dubai met up with the driving force behind one of Malta’s most prestigious real estate agents. He was emphatic that property in Malta is still a very solid investment and that the unique selling point has to be quality, both in terms of construction as well as in terms of quality of life.

In Norse mythology, the god Loki was considered as the great disruptor. If one were to believe in mythology, then Covid-19 must surely have been an agent of Loki. Alan Grima, CEO of the prestigious Dhalia Group, noted the huge impact which the pandemic had even on the unlikely market of real estate. A huge impact in every aspect of the commercial real estate market, was the way Mr Grima described it. Led by the dramatic impact on the tourism sector, which, for Malta, generates a great part of the economy, employees were increasingly encouraged to work from home. Before the pandemic, remote working was only for the select few, particularly in the tech industries such as in iGaming, digital advertising companies and FinTech. This shift, from working continuously, day in day out, from an office, to now working from a laptop/desktop at home, was a seismic shift. “It is set to change the island’s commercial property market in a variety of ways,” observed Mr Grima.

CHANGING TRENDS

The office sector, noted Mr Grima has changed over the past eighteen months or so. Many companies have realized that remote working actually works and they started to downsize their offices. He observed that the demand for office space is still there but it is changing its mien. Gone are the days of the large bustling corporate offices. In their stead, Mr Grima is observing a growth in serviced offices. This is particularly important for start-up businesses and those who take up the digital nomad lifestyle. Serviced offices provide common facilities such as reception and meeting rooms. Meanwhile, the smaller companies need to take up only as many rooms as is necessary. “Over the years, the improvements in connectivity infrastructure have come a long way,” explained Mr Grima.

“Post Covid-19, although it might be too early to judge, might see a rise in this trend in which short/medium term office rentals will make an increasing amount of the market share which was previously only occupied by long-term lease commitments by many big brands”, said Mr Grima. The recent increase in serviced offices in Malta has been a great success. A number of providers have started to lease out large office and business centres for long periods of time. In turn, these are being sublet to smaller brands looking for short to medium-term solutions for their company offices. As Mr Grima observed, this is not only an important development for the end user of the offices but represents a huge opportunity for those who would like to invest in real estate development in Malta.

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Post Covid-19, although it might be too early to judge, might see a rise in this trend in which short/ medium term office rentals will make an increasing amount of the market share which was previously only occupied by long-term lease commitments by many big brands

THE FOUR TENETS OF QUALITY

Mr Grima was adamant, the demand for high-quality commercial and office space will increase. But, asked Showcase Dubai, what constitutes ‘high quality’, is it just about flashy floors and shiny elevators? That too, said Mr Grima but certainly not the most important. There are at least 4 tenets on which quality commercial property is based. Accessibility is paramount, explained Mr Grima. This ranges from the concept of equal access for all to that of parking. He added that a commercial property which leaves clients exasperated with traffic and parking concerns, fails on the count of accessibility. Then there is the concept of flexibility. Mr Grima explained that this means that the shell of the building is built to high specifications so that the internal partitioning can be re-modeled by the client at will. Infrastructure relates to services which the country offers ranging from roads and utilities to electronic and digital coverage. Finally, all these factors come together under the last tenet: affordability. Mr Grima was clear: ultimately, affordability is the crux of the matter and one cannot price property out of what the market can afford.

A ROOM WITH A VIEW

One of the key effects left by Covid-19 was the appreciation for one’s home and for open spaces. Over the past two years, people have spent more time at home, alone or with their loved ones. As a result, this truly brought out the importance of how the home is the most important investment for the family. Following various lockdown periods, Mr Grima said that the property market evinced greater demand for houses in strategic locations with back gardens, terraces and/or views. “Spending more time at home, people will now start to look for a sense of the outdoors, in their own home,” said Mr Grima. Which begged the question from Showcase Malta: would a real estate company be more in favour of development or in favour of more green spaces? Mr Grima did not miss a beat: “We are fully in agreement of more green spaces. And if we go for land reclamation, this land should be devoted to green open spaces.” He explained further that this position is the obvious logical answer. “We are real estate businessmen. For us the property is important. If the property is devalued because development impinges on the quality of life it offers, then we cannot be in favour of that. We favour green spaces because those improve the quality of life and therefore the quality of the property,” continued Mr Grima.

THE PRICE OF IT ALL

While it might be too early to discuss the pandemic’s long-term effects, property in Malta has always been a solid investment. “We are seeing that, in general, property prices have actually stabilised since October 2019. This is good, a correction of the market. Next year we may even see a slight increase,” observed Mr Grima. Commercial property professionals are suggesting that landlords take a more active approach when it comes to their leasing strategies in order to make the most of the serviced office sector that is emerging in new sub-markets. This market, emphasized Mr Grima, is already gaining a lot of traction and it will surely increase as a result of the outbreak. “All in all, the commercial property market should jump at the first opportunity, not be constricted and reluctant to change and take advantage of this new chapter in Malta’s real estate market – and our experts are there to help,” concluded Mr Grima. n

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We are real estate businessmen. For us the property is important. If the property is devalued because development impinges on the quality of life it offers, then we cannot be in favour of that. We favour green spaces because those improve the quality of life and therefore the quality of the property

Dear: Global Citizen, Remote Worker & Digital Nomad From: Luca Arrigo Founder @ Negozju.com

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