When you get there, you'll realise how conspicuously different Malta is to other Mediterranean holiday destinations. A profound sense of history hits you immediately, even though it's only a 20minute drive to the swanky boutiques and glass-fronted restaurants of the capital, Valetta. Rich yellow sandstone mixes ancient megalithic temples with new builds in a seamless blueprint that leaves little spare space.

The island is packed with buildings and people; located in the Mediterranean Sea, 97km south of the southeast tip of Sicily, with 400,000-plus inhabitants, on a slim-fit of 320sq km.

There's oodles to see and visit from designer stores in the modern commercial enclave of Sliema (Bisazza Street and Tower Road particularly) to the craft shops and eateries of Valetta and on to the medieval heart of Mdina.

Tourist brochures rightly brag about 7,000 years of history, temples older than the Pyramids, grand palaces built by the Knights of St John, great fortresses, drowsy fishing ports, etc, yet never far from modern spa hotels and activity centres offering jeep safaris, sea sports, golf and beach life. Big chunks of the island are world heritage sites, which keeps the overall feel safe from development overkill.

Tigne Point One of the biggest developments on Malta right now is Tigne Point (www. tignepoint. com); the last fort to be built by the Knights in Malta, and later a British barracks.

Two hundred and forty highquality apartments in phase one offer residents dramatic city views in a calm environment of private gardens and courtyards. On the north side of the peninsula, facing the sea, an additional 200 luxury apartments are set against an urban backdrop of high-quality offices and a retail and leisure mall. The apartments and offices are designed to include 'smart features' and the latest broadband technology.

At the heart of the development lies Piazza Tigne, a large and fashionable square offering stylish retail stores and a vibrant outdoor cafe life, all set at the centre of what is the largest urban pedestrian zone on the island. When finished there will also be a clubhouse, including squash courts, a gym, a sauna, therapy rooms and an indoor swimming pool, a roof-top football pitch, cinema and 1,200 parking slots situated on four levels under the piazza and mall.

"It will be a managed environment with no fumes, no noise, no parking problems, as there's no foreshore ringroad between the shoreline apartments and the sea, " maintains James Vassallo, sales and marketing manager, Tigne Point. "It's a very typical Mediterranean concept, even though the architecture is very contemporary. The closer you get to the central square, the more commercial the development becomes. It's unique because it's 'car free' and will definitely retain a sense of its own culture. Above ground the only vehicles that can ever enter are emergency vehicles."

The average size of an apartment in the scheme is 235sq m (2,530sq ft), large by Irish standards. Apartments without views (ie, overlooking gardens within the complex) start at around 220,000. However, prices do fluctuate dramatically depending on position, view, size, amenities (some have large private terrace swimming pools, others plunge-pools, while smaller apartments have jacuzzis built onto balconies). "Just two weeks ago, we sold a penthouse of 600sq m (6,458sq ft) with a large private pool, five bedrooms for 1,863,904, " explains Vassallo.

The entire first phase has now been sold . . . six Irish investors are among the 200 . . .

while others literally bought and sold again before completion. According to Vassallo, there were 63 're-sales' out of the initial 200 properties that were available. There are 300 left yet to sell, phase two, three and four.

The entire development will be complete by end of 2008.

Elsewhere A 10-minute drive away from Tigne Point is Portomaso, overlooking St Julian's Bay, a waterfront residential development covering an area of 128,000sq m, with a 110-berth yacht marina stretching along 1.6km of water frontage. It's next door to the five-star Hilton hotel (residents can use the hotel facilities). A three-bed apartment is currently for sale for 912,192. A two-bed apartment (140sq m /1,507sq ft) costs between 500,000 to 600,000 here. "This is the most expensive location for someone to buy an apartment, " says Neville Sciberras, branch manager, Dhalia (Sliema), Malta's premier estate agent. "It is a prime area that you'll either hate or love depending on what you're looking for because it's a very unique setting."

Sliema itself is a key area for investors who have topend budgets. A two-bed apartment in this trendy part of Malta will cost about 700,000 while the prestigious Tower Road thoroughfare (Denis O'Brien is rumoured to have bought here recently) can cost from 1m upwards.

Another sought-after residential area on the island is Mellieha, known primarily for its lavish villas and uninterrupted views of the sea. Here you will not get much change out of 1m.

This is in contrast to quieter areas of the island where locals tend to buy; places such as Naxxar, Xghajra and Xemxija, where apartments, houses and maisonettes start at 164,956.

Gozo The island of Gozo, while not geographically dissimilar to Malta, feels more remote, quiet and unblemished. It's 14km long and 7km at its widest point, is less populated and more rural than its big sister, and has many varied attractions; an ancient citadel, stone age temples and beaches.

One of the most inimitable developments ever has to be the Fort Chambray Holiday Resort on Gozo (info@fortchambray. com). Fort Chambray is on top of the hill of Mgarr; planned by the Knights in 1723 as a fortified town but not constructed until 1749, it remained unfinished until now.

The site is perched on a cliff and laced with manyhistoric features.

There are four phases of development: 66 residential units from 1,216sq ft to 7,535sq ft, with prices ranging from 1,575,000. These units are sold in shell format (without interior doors, kitchens or bathrooms) and will be ready for hand-over Christmas this year. Phase two comprises 223 residential units (538sq ft to 1,292sq ft net living area), fully outfitted and furnished. Prices range from 175,000 to 650,000. Two further phases of 202 residential units (861sq ft to 1,884sq ft (including exterior space) range from 235,000 to 750,000, and phase four, comprising a fivestar hotel, 1,000sq ft swimming pool, children's playground, etc, will follow.

"There will be a nominal fee for upkeep of the property, but the developers are not interested in making money on the service charges end of things, " says Franco Valletta, chief executive of Dhalia. "They are more concerned with making this development work as a totally incredible place to live.

So far we have sold 60% of phase one."

The official launch of the Fort Chambray project has been set for Friday, 17 November 2006. Interested parties should visit www. dhalia. com.

Since joining the EU, Malta has been amongst the highest in the EU for price rises and statistics indicate that these price rises are likely to keep going. There was a 16% increase from January 2006 to March 2006 alone. Demand for property in Malta is strong and prices could rise by up to 10% by the end of 2006.

President Mary McAleese visited Malta last week, the first Irish president to do so. As well as the customary state dinner, a courtesy call at the Palace (in Valetta), attending a concert and planting a tree, she commented that she hoped Irish investors would look to Malta in the future.

Maybe they will be the new breed of Knight (with shining euros), occupying strategic points on the islands.

MALTA FACTS AND FIGURES >> In order to take up residence permanently or inde"nitely in Malta you will have to obtain a certi"cate issued under the Residence Scheme Regulations, 2004. The certi"cate entitles the holder to a "at income tax rate of 15%, subject to a minimum annual tax liability (after taking into account any double taxation relief) of 4,181.82 The tax is calculated on chargeable income and capital gains arising in Malta and on foreign income (excluding capital gains) remitted to Malta.

>> There is no estate duty tax in Malta. Duty on documents and transfers (stamp duty) is however payable on a transfer (whether on death or otherwise) of immovable property situated in Malta and shares in Maltese companies, unless the respective companies are quoted on the Malta stock exchange or are otherwise exempt from such stamp duty.

Duty on the acquisition of immovable property is currently levied at 5%.

>> Any non-Maltese citizen is eligible to apply for a residence scheme certi"cate and qualify for the particular tax treatment outlined above, subject to certain conditions including if he or she:

(i) either owns assets outside Malta worth at least 348,450 or has an annual income of at least 23,230 arising outside Malta; (ii) within 12 months from taking up residence in Malta either purchases a residence in Malta at a cost of at least 116,133 for a house or 69,680 for a "at, or lease/rent a residence in Malta at a rent of at least 4,180 per annum; (iii) remits to Malta (and not re-transfer out of Malta) at least 13,940 plus 2,323 per dependant annually; (iv) "les, with the Inland Revenue Department, the application form together with various supporting documentation.