Authored by the expert who managed and guided the team behind the Malta Property Pack
Everything you need to know before buying real estate is included in our Malta Property Pack
As we reach mid-2025, Malta's property market offers interesting opportunities for both investors and those looking to relocate.
The market has stabilized after years of rapid growth, with property prices expected to remain steady or see slight declines in some areas. This shift gives buyers more negotiating power and choice, especially with mortgage rates remaining attractive at around 2.59%.
If you want to go deeper, you can check our pack of documents related to the real estate market in Malta, based on reliable facts and data, not opinions or rumors.
Malta's residential property market in 2025 presents a balanced opportunity with stable prices, government incentives for buyers, and strong rental demand driven by tourism and expats.
Whether you're buying to live in, rent out, or flip later, success depends on choosing the right location and understanding the specific dynamics of Malta's unique island market.
| Aspect | Current Status | 2025 Outlook |
|---|---|---|
| Market Condition | Stabilizing after rapid growth | Steady with localized opportunities |
| Price Growth | 3.38% annually (slowing) | 0-3% expected growth |
| Mortgage Rates | ~2.59% | Remain attractive |
| Rental Yields | 3.5-4% long-term | Higher for short-term lets |
| Best Areas | Sliema, St Julian's (premium) | Marsascala, Zabbar (emerging) |
| Entry Budget | €150,000 minimum | Better value in outer towns |
| Government Support | New buyer incentives | Continuing in 2025 |
Should I buy or rent in Malta for medium to long-term stays?
If you're planning to stay in Malta for several years, buying property makes more financial sense than renting.
As of June 2025, mortgage rates sit at approximately 2.59%, making financing attractive for buyers. The market has shifted from rapid growth to stabilization, giving you more negotiating power than buyers had in previous years.
However, if flexibility is crucial for your situation or you're uncertain about your long-term plans in Malta, renting remains a solid option. Rental prices have stayed stable, and the high supply of new units means you'll have plenty of choices.
For stays under three years, renting typically works out better financially when you factor in purchase costs like the 5% stamp duty and notary fees.
How have Malta property prices changed, and what's coming in 2025 and beyond?
Malta's property market has experienced significant growth over the past decade, but the pace is now moderating.
Since 2015, property prices in Malta have risen by 53%, averaging 5% annual growth. The market saw particularly strong years with +6.94% in 2021 and +7.54% in 2023.
As we reach mid-2025, growth has slowed considerably. The nationwide property price index rose just 3.38% in the year to Q2 2024, with some quarterly declines including a -4.06% drop in Q2 2024.
Looking ahead, prices are expected to stabilize throughout 2025, with possible slight declines in oversupplied areas like parts of St Paul's Bay and continued moderate growth in prime locations such as Sliema and Valletta.
The days of rapid double-digit annual growth appear to be over, replaced by a more sustainable market that offers better opportunities for careful buyers.
What are the current trends shaping Malta's real estate market?
Malta's residential property market in 2025 is characterized by stabilization after years of rapid expansion.
The oversupply in certain areas, particularly in new developments around St Paul's Bay and Mellieha, gives buyers more choice and stronger bargaining positions. This is a significant shift from the seller's market of recent years.
The rental market remains robust, especially near schools and in urban centers like Sliema and St Julian's, with gross yields averaging 3.66%. Short-term vacation rentals can achieve even higher yields thanks to Malta's booming tourism sector, which welcomed over 3.5 million visitors in 2024.
Energy efficiency has become a major trend, with 60% of properties expected to be energy-rated by the end of 2025. Buyers increasingly demand smart home features and sustainable design.
The government has introduced new affordability schemes and incentives for first- and second-time buyers in 2025, making property ownership more accessible for locals and eligible foreigners.
How does the property buying process work in Malta, step by step?
The property buying process in Malta follows a structured legal framework that protects both buyers and sellers.
| Step | Action Required | Timeline |
|---|---|---|
| 1. Budget Assessment | Get mortgage pre-approval from local banks | 1-2 weeks |
| 2. Property Search | Work with agents to find suitable properties | 2-8 weeks |
| 3. Engage Notary | Select notary to prepare Promise of Sale | 1 week |
| 4. Sign Promise of Sale | Pay 10% deposit + 1% stamp duty | Same day |
| 5. Due Diligence | Notary conducts title searches, architect inspection | 3 months |
| 6. Obtain Permits | Non-EU buyers get AIP permit (if needed) | 2-4 weeks |
| 7. Final Deed | Pay balance + remaining stamp duty | Same day |
| 8. Handover | Receive keys and take possession | Immediate |
The entire process typically takes 3-4 months from signing the Promise of Sale to final deed. Non-EU buyers may need additional time if purchasing outside Special Designated Areas (SDAs) due to permit requirements.
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Where can I find property listings and which agencies are most reliable?
Malta has a well-developed real estate sector with numerous reputable agencies and online platforms.
The most established agencies include RE/MAX Malta, Frank Salt Real Estate, Dhalia, Sara Grech, and Zanzi Homes. For luxury properties, Christie's International Real Estate Malta specializes in high-end listings.
Online platforms offer comprehensive search capabilities. PropertyMarket.com.mt provides extensive local listings, while international sites like Rightmove and A Place in the Sun cater to foreign buyers. The Yitaku app offers a modern, mobile-first approach to property searching.
For direct-from-owner deals that might save on agency fees, check Maltapark and Noagentsfees.com, though these require more due diligence on your part.
It's something we develop in our Malta property pack.
What can I realistically buy with budgets of €150k, €300k, or €500k+?
Your budget determines not just property size but also location and quality in Malta's diverse market.
With €150,000, you can secure a one-bedroom apartment in outer towns like Qawra, Marsascala, or even parts of Gozo. These areas offer authentic Maltese living at affordable prices, though they're less popular with tourists.
A €300,000 budget opens up two-bedroom apartments in suburban areas or small townhouses in Gozo. You might find older properties needing renovation in more central locations at this price point.
At €500,000, you enter the market for three-bedroom apartments in prime areas like Sliema and St Julian's, or characterful farmhouses in rural Gozo. This budget also allows for newer developments with modern amenities.
Above €1,000,000, luxury penthouses, villas, and properties in Special Designated Areas like Tigne Point and Portomaso become available, offering premium finishes and locations.
Which are the best areas to buy - affordable, up-and-coming, or upscale?
Malta offers distinct property markets catering to different budgets and lifestyle preferences.
| Area Category | Examples | Price Range (2-bed) | Best For |
|---|---|---|---|
| Affordable | Qormi, Mosta, Fgura, Birkirkara | €180k-€250k | First-time buyers, families |
| Up-and-Coming | Marsascala, Zabbar, Msida | €220k-€320k | Investment potential |
| Upscale | Sliema, St Julian's, Valletta | €400k-€800k+ | Premium lifestyle, rentals |
| Rural/Tranquil | Gozo, Rabat, Mdina | €250k-€400k | Peace seekers, retirees |
| Coastal | Mellieha, St Paul's Bay | €300k-€500k | Sea lovers, holiday homes |
Each area type offers distinct advantages. Affordable areas provide great value and authentic local experiences but may have less rental demand. Up-and-coming locations offer the best appreciation potential as infrastructure improves. Upscale areas command premium prices but ensure strong rental yields and lifestyle amenities.
What's the real cost of living in Malta if I own property?
Owning property in Malta comes with ongoing costs beyond your mortgage payments.
Monthly utilities for a typical apartment run €80-€150, covering electricity, water, and basic services. Internet costs €20-€50 monthly for reliable connections. Groceries for one person average €350-€400 monthly, while a family of four should budget around €800-€1,000.
Public transportation is free with a Tallinja card, otherwise budget €50-€100 monthly. The good news is Malta has no annual property tax, though you'll pay a modest land tax of €40-€250 yearly depending on your property.
A single person can live comfortably on €1,200-€1,500 monthly excluding mortgage, while a family needs €2,800-€3,500. These figures assume a moderate lifestyle without excessive dining out or entertainment.
Malta also offers tax advantages with no inheritance tax and favorable tax treaties with many countries, making it attractive for retirees and international residents.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malta versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What mistakes do people commonly make when buying Malta property?
Many buyers rush into Malta's property market without adequate preparation, leading to costly errors.
The most common mistake is insufficient research about locations. Not all areas appreciate equally - properties in oversupplied zones like parts of St Paul's Bay may stagnate while emerging areas like Marsascala show strong growth potential.
Over-borrowing represents another critical error. Online mortgage calculators often overestimate what banks will actually lend. Always get real loan offers before property hunting to avoid disappointment.
Skipping professional help to save money backfires frequently. A good notary costs around 1% but prevents legal issues. An architect's inspection might reveal structural problems saving you from a money pit.
Buyers often forget hidden costs, budgeting only for the purchase price. Remember to include 5% stamp duty, 1-2% notary fees, and potential renovation costs which can add 10-20% to your total investment.
We explore these pitfalls in detail in our Malta property pack.
Which areas work best for long-term rentals and what yields can I expect?
Long-term rental success in Malta depends heavily on location and understanding tenant preferences.
- Sliema and St Julian's lead for professional expat tenants, offering 3.5-4% gross yields
- Gzira and Msida attract students and young professionals due to university proximity
- St Paul's Bay and Mellieha appeal to families seeking space and coastal living
- Birkirkara and Mosta provide steady local demand with slightly higher yields around 4-4.5%
- Marsascala emerging as a hotspot for value-conscious tenants seeking seaside locations
Expat professionals typically seek modern, well-located apartments with good internet, air conditioning, and proximity to business districts. Families prioritize school access, safety, and outdoor space. Students need affordable options near the University of Malta or transport links.
Net yields after management costs and maintenance typically run 0.5-1% lower than gross figures. Properties requiring significant renovation can achieve higher yields once upgraded to meet modern standards.
What about short-term rental opportunities and regulations?
Short-term rentals in Malta benefit from record tourism but face increasing regulation.
Prime locations for vacation rentals include Sliema, St Julian's, and Valletta, where nightly rates range from €80-€200 depending on season and quality. Coastal towns and Gozo also perform well, especially during summer months.
Your guests will primarily be tourists (60%), digital nomads (25%), and business travelers (15%). The season runs strong from April through October, with July-August commanding peak rates.
Regulations require registration with the Malta Tourism Authority and compliance with minimum standards including safety features, proper insurance, and tax registration. Foreign owners face additional restrictions and must appoint local representatives.
Gross yields can reach 6-8% in prime locations, significantly higher than long-term rentals. However, factor in higher management costs (15-25%), more frequent maintenance, utility bills, and seasonal fluctuations.
Success requires active management or a reliable property management company, as guests expect quick responses and hotel-like service standards.
Is buying Malta property in 2025 ultimately worth it?
The decision to buy property in Malta in 2025 depends on your specific goals and circumstances.
For living purposes, buying makes sense if you're planning to stay for more than three years. With mortgage rates at 2.59% and government incentives available, the math often favors ownership over renting. The stabilized market means you're unlikely to overpay as buyers did during the boom years.
For rental investment, Malta offers solid opportunities. Long-term rentals provide stable 3.5-4% yields with minimal management hassle. Short-term rentals can double those returns but require more involvement and carry regulatory risks.
For flipping, the outlook is less certain. With price growth slowing to 3% annually, quick profits are unlikely. Focus instead on value-add opportunities through renovation or emerging neighborhoods where infrastructure improvements drive appreciation.
Malta's property market in 2025 rewards patient, well-researched investment over speculation. Choose locations carefully, understand your target market, and don't overextend financially. With proper planning, Malta property remains a worthwhile investment for both lifestyle and financial returns.
For comprehensive market analysis and investment strategies, explore our Malta property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Malta's property market in 2025 offers a balanced opportunity for buyers who do their homework.
The days of rapid price appreciation have given way to a more sustainable market where location selection, understanding of local dynamics, and careful financial planning determine success. Whether you're buying for personal use or investment, Malta's combination of EU membership, English-speaking environment, and Mediterranean lifestyle continues to attract international buyers.
Sources
- Global Citizen Solutions - Malta Real Estate Guide
- Ben Estates - Malta Budget 2025 Real Estate Highlights
- Global Property Guide - Malta Price History
- Victor Estate - Malta Property Market 2025
- RE/MAX Malta - Home Buying Procedure
- Frank Salt Real Estate
- Christie's Real Estate Malta - Finding the Right Partner
- Ben Estates - 2024 Malta Property Market Guide
- Immigrant Invest - Malta Real Estate Investments
- IMIN Malta - Cost of Living