Living in luxury in the Dalkey of Malta

Mediterranean InvestmentsIt's only twice the size of Achill and there's something about the place that is forever England. But Malta has everything that's good about the Mediterranean, says Michael Parsons

President McAleese wasn't the only Irish visitor flying the flag in Malta last week. On the eve of her two-day state visit, the first by an Irish president, a plenipotentiary from the court of Michael "King Midas" O'Leary arrived in Valletta to announce that Ryanair is adding the holiday island State to its flight schedules - from Luton later this month and Dublin next February. The news was greeted enthusiastically in a country where over 40 per cent of economic activity derives from tourism.

Wherever the "people's airline" has spread its wings, tourist numbers have surged and holiday-home prices have risen. Dublin is already served by Air Malta but the "Ryanair effect" is likely to significantly boost the flow of Irish visitors and prospective property investors.

Malta, situated about 60 miles south of Sicily, offers the pleasures of the Mediterranean without the horrors of Greek plumbing, the jerry-building of the Ballymun-á-la-playa Costas, the histrionics of Italy or the over-priced snootiness of the Cote D'Azur or the baksheesh nuisance of North African resorts. Though it has always had its coterie of devotees - and attracts about a million visitors a year - Malta has never been a mass market destination.

The usual explanation is that it lacks postcard beaches. Lucky Malta! This providence has spared it the worst excesses of mass English - and, it needs to be said, Irish tourism - which has so despoiled much of the region. Happily, ladettes-who-lurch and lads-on-the-lash prefer destinations such as Torremolinos or Faliraki.

Malta has endured waves of invasion and immigration throughout its history. Phoenicians, Romans, Arabs, Normans, Sicilians and the French all left their mark before the cluster of islands became a British colony in 1800. Although English is ubiquitous, there is a Maltese language which is a mix of Arabic and Italian, looks like Albanian and sounds like the patois used by presenters on The Fast Show's fictitious Channel 9 television where the weather forecast is always "Scorchio!"

Malta left the mother-ship HMS Britannia rather later than we did and still retains a distinctly post-colonial air. Which is not entirely disagreeable. Is that the sound of Mary Lou-style harrumphing "what did the dastardly British ever do for the world?" Well how about afternoon tea, railways, canals, public sewerage systems, parliamentary democracy, lemon curd, the Shipping Forecast, gin-and-tonic and cryptic crossword puzzles - for starters.

But what about the intolerable misery and oppression perpetrated by the Empire? Well, Malta doesn't look like it suffered very much. In fact, the Maltese invited the British in to get rid of the ghastly French - and thrived.

The people speak English, drive on the left, use red telephone boxes, read a newspaper called The Times (always a good sign) and behave with a rather Anglo-Saxon reserve which is quite at odds with their more excitable neighbours. Pub quiz enthusiasts or dinner party bores may care to know that Malta is the only foreign country in which Britain's Queen Elizabeth has lived. As Princess Elizabeth, she lived there between 1949 and 1951 when her husband was stationed with the Royal Navy. They had the use of the Villa G'Mangia, a house owned by Lord Louis Mountbatten, in the village of Gwardamangia.

The bravery of the Maltese people during World War II led King George VI to award the George Cross to Malta on a collective basis in 1942 "to bear witness to a heroism and devotion that will long be famous in history". A replica of the George Cross still features on the national flag.

But Malta is not Bournemouth-in-the-sun. Today it is a confident, affluent Republic (since 1974, having achieved independence 10 years earlier), a member of the Commonwealth and member state of the EU (since May 2004) with a glorious architectural heritage, a high standard of living, some very good restaurants, a reputation for excellent health care, a low crime rate and pretty much year-round sunshine. And, despite the paucity of big sandy beaches, it offers excellent bathing, sailing, diving and, for those who care for that sort of thing, swimming with dolphins.

The majority religion is Catholic - following a conversion by St Paul who was shipwrecked on Malta in AD 60. The country was once home to the Knights of the Order of St John (now more commonly known as the Knights of Malta) - a pan-European, lavishly funded militia established to protect Christendom from the Ottoman Empire - and which settled on the island from the 16th century. They left a rich legacy of fairytale military forts, sumptuous palaces (now largely used to house government ministries) and lavishly decorated churches.

These include the must-see baroque Cathedral of St John in Valletta which houses one of the greatest Caravaggio paintings, The Beheading Of The Baptist; and the Cathedral of St Peter and Paul in the splendid city of Mdina which features an elaborately carved wooden door fashioned from 2000-year-old Irish bog oak and believed to have been imported by the Normans in the 12th century. The area of the entire country is only 316square kilometres. To put that into context, the territory of Malta is just about twice the size of Achill - or one-third of little Co Carlow. It is one of the most densely populated countries in the world with 1,271 people per square kilometre compared to The Netherlands with 392 and Ireland with 59. Most of the 400,000-strong population lives on the main island of Malta with about 29,000 on the little island of Gozo.

Malta has long been popular with foreign homeowners attracted by its weather, gentle lifestyle and very low taxes. There are no rates but stamp duty is 5 per cent. The Maltese lira is due to be replaced with the Euro in 2008 and estate agents are already quoting prices in the new currency.

Because of the shortage of building land, foreigners are prevented from buying more than one property or from renting it out (and a derogation in the EU accession treaty recognises this restriction). But the rules do not apply in "specially designated areas" which are beginning to attract the interest of Irish investors.

Among such developments is Tigné Point, a luxury apartment complex. It's in the resort town of Sliema (the Dalkey of Malta and where, incidentally, mobile telephony tycoon Denis O'Brien has recently acquired a residence). The development is being built by MIDI plc, a local consortium, using leading international designers and architects to create what agents claim will be Malta's most exclusive address.

Located just 20 minutes from the airport, the mixed use "self-contained enclave" consists of homes, shops, leisure facilities and offices on a 44-hectare site on a promontory with views to the sea on one side and across the harbour to the honey-coloured limestone facades of the UNESCO World Heritage City of Valletta on the other.

Elements of an impressive 18th century fort and a Victorian British military barracks are being retained and integrated into the site to "preserve a historical dimension".

The first phase of 200 luxury apartments, currently nearing completion, were all sold off-plan two years ago. About 40 per cent of sales were to overseas buyers - including six Irish investors. Sales in phase two - a mix of 300 luxury apartments and penthouses due for completion in 2008 - will be launched next year. Prices have yet to be finalised but will start at about €220,000 for 140sq m (1,506sq ft) two-bedroom apartments with a garden view and rise to "about €2 million" for a 600sq m (6,458sq ft) penthouse with private roof-top pool, five bedrooms and panoramic views.

James Vassallo, sales and marketing manager for the development claims that "a similar waterfront penthouse in Nice, Cannes or Monte Carlo would be double the price and never this big".

The entire area will be pedestrianised with access via underground car-parking. Tigné Point will provide a management company for those who wish to rent out their properties. Irish investors wishing to register for phase two or to arrange an inspection visit can contact Mr Vassallo directly (details on www.tignepoint.com).

There are other luxury apartment complexes in Malta including the Portomaso waterfront development at St Julian's, where owners are said to include Manchester United footballers. The average price of a 140sq m (1,506sq ft) two-bed apartment with a sea-view here is about €550,000 - and an 80sq m (861sq ft) apartment without a view about €230,000. Close by, and beyond the complex gates, prices drop by about 50 per cent. In fact, there is a wide choice of less expensive properties in Malta with apartments starting at around €100,000.

Flights to Malta: www.airmalta.com and www.ryanair.com