The commercial market is a sector that we at Belair Property put a strong emphasis on. We make it our business to find your business a home. Our extensive property portfolio offers a vast selection of properties in Malta and Gozo ranging from offices to shops, showrooms, catering and entertainment establishments.
In recent years, the commercial property market has become so important to our economy that we have worked hard to position ourselves as specialists in the provision of all types of office premises; especially in the wake of the boom of international companies and institutions now operating out of Malta. Our Consutlnats are trained to provide our corporate clients with a one-stop-shop for all the corporate services they may require when buying or letting a commercial property in Malta.
This has led to our long list of local and foreign clients continuously requesting our property services to benefit from our corporate assistance and customer support. Some of our satisfied corporate clients include leading international banks, financial services companies and institutions, leading IT and online gaming companies, and international retail chains, to mention just a few.
Our commercial real estate department focuses on both sales as well as rentals of commercial property in Malta.
Feel free to contact us for any requirements you may have or information you may wish to obtain on selling, buying or renting a commercial property in Malta as well as information on relocating your business to Malta. Our Consultants will be more than happy to assist you.
Commercial Property Rentals
The Lessee enters into a rental contract that binds him/her to a stipulated period of time. The contract will include general conditions that safeguard both the Lessor as well as the Lessee. Specific clauses can sometimes be included depending in the agreement between both parties. Conditions are varied and dependent on the type of business venture. In all cases it is very important that the property holds the relative permits and if not, that these permits can be obtained. The relevant planning permits pertaining to the particular commercial premises is usually obtained by the Lessor, however the business / trading licence relating to the particular business is usually obtained by the Lessee.
Commercial Property Sales
Similar to residential property, when one is purchasing a commercial property, a ‘Promise of Sale‘ (also known as the ‘Konvenju‘) is entered into. This is usually held at the Notary of the Purchaser‘s choice, and where the Purchaser has no connections with any particular notary, this can be suggested and coordinated by Belair. The agreement is then drafted based on the terms and conditions agreed upon, and signed by both parties in the presence of the Notary.
A deposit usually equivalent to 10% is paid upon signing of the ‘Promise of Sale‘ and held either by the Vendor or by the Notary, again depending to what has been agreed
The Notary then conducts the necessary searches and obtains the necessary documentation to satisfy both the Purchaser‘s and the Vendors’ legal requirements
During this time, an architect visit is recommended to ensure that the property is in good structural condition and that all planning permits are in order.
Our commercial property operation is vast due to the fact that it encompasses such a variety of different types of properties. A business venture generally has specific requirements and criteria it needs to satisfy in order to operate properly. Thus, it is imperative that the right location is identified, combining the right space with functionality and location, and feel to ensure a successful business operation.
Our real estate and letting agents understand this. Whether a client is looking to buy or rent, clients are encouraged to discuss their requirements in detail. We can also give professional advice on what could be the right space for our clients, enabling them to take the right decision, putting them in the optimal situation of visualising the business concept and seeing how they can incorporate the required space with the optimum location in Malta.
Viewings of both rental or sales of commercial property for sale are treated in the same way.
Commercial Property Rentals
In the case of commercial property rentals both the Lessor and the Lessee are each to pay agency fees of 10% + VAT of the first year’s rent. This fee is only paid once, and is non-refundable. Should the lease be for a period of less than one year, the agency fees are paid pro-rata, and should the lease be extended, the additional agency fees will then be paid in the same way.
Commercial Property Sales
Commission is charged at 3.5% + VAT if agreed upon as an exclusive listing, also known as ‘Sole Agency‘ or 5% + VAT if listed as an open agency agreement. Commission is only paid by the vendor and no fees are due by the purchaser.
Planning Permits for Commercial Property
The latest planning categories for commercial properties in Malta were issued in February 2014. The list hereunder is an abridged and simplified version of the Categories and Classes in these regulations. For further details – including timeframes for planning and change of use applications – kindly contact us and we will get in you touch with a qualified professional.
Category A – Residential Use
Class 1 – Dwellings
(a) a single person or by people living together as a family;
(b) not more than six residents living together, including a household where care is provided for residents;
(c) lodging of not more than 16 persons, provided that the operation is licensed by the Malta Tourism Authority and the premises are located within an Urban Conservation Area;
(d) a resident concurrently with his or her occupation or business, provided that it is identified as the ordinary residence of the person undertaking the occupation or business and the activity:
(i) uses less than half the residential floorspace of the dwelling – capped at 50 sqm – provided that the minimum dwelling size is not prejudiced;
(ii) relates to beauty and wellness related services, or professional offices, or medical services, or education, or any other activity which in the opinion of the Authority is compatible with residential use;
(iii) is not a client-intensive activity;
(iv) does not generate a disproportionate vehicular traffic or parking which is detrimental to the amenity of the area in which it is conducted;
(v) can be carried on in any residential area within the Development Zone without undue detriment to the amenity of that area by reason of noise, vibration, smell, fumes, smoke, soot, ash, dust, grit, light, radiation or incompatible visual impact; and
(vi) is conducted in a residence which does not form part of a block of apartments or any other block of buildings accessible from an external common entrance.
Category B - Social Uses
Class 2A – Residential Institutions
(a) residential accommodation and care to people in need of care other than a use within Class 1 (Dwellings);
(b) hospital or nursing home;
(c) medical clinic;
(d) clinic for professionals complementary to medicine.
Class 2B – Non Residential Institutions
(a) display of works of art other than for sale or for hire;
(c) public library or public reading room;
(d) public hall or exhibition hall.
Class 2C – Education
(a) kindergarten, creche, day nursery or day centre;
(b) residential or non-residential school, college or training centre.
Category C - Tourism and Leisure Uses
Class 3A – Guest Houses, Palazzini, Boutique Tourism
(a) guest house;
(c) boutique tourism accommodation;
(d) hostel, where no significant element of care is provided, but excluding premises licensed for the sale of alcohol/ liquor to persons other than residents.
Class 3B – Hotels
Class 3C – Assembly and Leisure
(b) concert hall or theatre;
(c) swimming bath or pool, skating rink, gymnasium, health club, sauna, sports hall, or other indoor or outdoor land-based sport or recreations not involving motorised vehicles or firearms.
Class 3D – Marine Leisure
(a) mooring boats and/or as a marina;
(b) diving, sailing, or windsurfing school or other marine- based sport or recreation.
Category D - Commercial Uses
Class 4A – Financial, Professional and Other Offices
(a) financial services;
(b) professional services (including doctors, lawyers, dentists);
(c) any other offices of a comparable nature.
Class 4B – Retail
(a) retail outlets;
(b) display for sale of goods excluding motor vehicles.
Class 4C – Food and Drink Establishments where no cooking is allowed
(Establishments catering for the preparation and sale of hot or cold food or drink for consumption on the premises where no cooking is allowed)
Class 4D – Food and Drink Establishments where cooking is allowed
(Establishments catering for the preparation and sale of hot or cold food or drink for consumption on the premises where cooking is allowed)
Category E - Industrial Uses
Class 5A – Light Industry
(a) research, testing and development of products or processes;
(b) craft business;
(c) any other light industry not falling under Class 5C, provided that, if any such use is carried out in a residential area, in the opinion of the Authority:
(i) it can be carried out without detriment to the amenity of that area by reason of noise, vibrations, smell, fumes, smoke, soot, ash, dust, grit, or visual impact; and
(ii) it does not generate a disproportionate vehicular traffic or parking which is detrimental to the amenity of the area in which it is conducted; and
(iii) it does not result in a significant increase in the number of employees previously engaged in the former use.
Class 5B – General Industry
(Carrying out of an industrial process not contemplated by Class 5A or Class 5C)
Class 5C – Specialised Industry
(a) smelting, calcining, sintering or reducing ores, minerals, concentrates or mattes;
(b) converting, refining, reheating, annealing, hardening, melting, carburising, forging, or casting metals or alloys other than pressure die-casting;
(c) recovering of metal from scrap, drosses or ashes;
(e) pickling or treating metal in acid;
(f) chromium plating;
(g) burning lime or dolomite;
(h) producing zinc oxide, cement or alumina;
(i) foaming, crushing, screening or heating mineral or slag;
(j) processing pulverised fuel ash by heat;
(k) producing carbonate of lime or hydrated lime;
(l) producing inorganic pigments by calcining, roasting or grinding, except where the above processes are ancillary to the getting, dressing or treatment of minerals and undertaking in or adjacent to a quarry or mine;
(m) distilling, refining, or blending oils (other than petroleum or petroleum products);
(n) producing or using cellulose or using other pressure sprayed metal finishes (other than in vehicle repair workshops in connection with minor repairs, or application of plastic powder by the use of fluidised bed and electrostatic spray techniques);
(o) boiling linseed oil or running gum;
(p) processes involving the use of hot pitch or bitumen in the manufacture of roofing felt at temperatures not exceeding 220ºC or the manufacture of coated roadstone;
(q) stoving enameled ware;
(r) producing aliphatic esters of the lower fatty acids, butyric acid, caramel, hexamine, iodoform, naphthols, resin products (excluding plastic moulding or extrusion operations and producing plastic sheets, rods, tubes, filaments, fibres or optical components produced by casting, calenering, moulding, shaping or extrusion), salicylic acid or sulphonated organic compounds;
(s) producing rubber from scrap;
(t) chemical processes in which chlorophenols or chlorocresols are used as intermediates;
(u) manufacturing acetylene from calcium carbide;
(v) manufacturing, recovering, or using pyridine or picolines, any methyl or ethyl amine, or acrylates;
(w) the carrying on of an industrial process which uses animal remains as the primary input or as part of the process of manufacture.
Category F - Storage and Boathouse Uses
Class 6A – Storage and Distribution
(Storage – other than the storage, on land or on water, of boats – or as a distribution centre)
Class 6B – Boatyards
(a) storing boats (other than in a marina);
(b) boat building;
(c) boat repair and servicing.
Category G - Agriculturel Uses
Class 7 – Agriculture
(Agricultural activity which involves the intensive raising of crops or animals)
Category H - Aquaculture Uses
Class 7 – Aquaculture
(Hatching or fattening of fish)