Is now a good time to buy a property in Malta? (January 2026)

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

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INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Malta. If you’d like to learn more about us, you can check our presentation page.

Is it smart to buy now in Malta, or should I wait as of 2026?

Do real estate prices look too high in Malta as of 2026?

As of early 2026, Malta property prices are running about 5% to 7% above where they were a year ago, which is above the long-term average growth rate but not in "bubble spike" territory.

One clear signal from listings data is that well-priced properties in prime Malta locations like Sliema and St Julian's still sell within weeks, meaning there's no widespread buildup of stale inventory that would suggest prices are too stretched.

However, the gap between asking prices and final sale prices in Malta remains around 10% to 15%, which tells you that sellers are often testing the market with optimistic pricing and buyers have room to negotiate.

You can also read our latest update regarding the housing prices in Malta.

Does a property price drop look likely in Malta as of 2026?

As of early 2026, the likelihood of a meaningful property price drop in Malta over the next 12 months is low, because both transaction volumes and prices are still climbing steadily.

A plausible price change range for Malta in 2026 would be anywhere from flat (0%) to about +7%, with a modest correction of -3% to -5% only happening if a clear shock hits the economy or credit market.

The single most important factor that could trigger a price drop in Malta is a sharp rise in interest rates, because many buyers rely on affordable mortgages and even a 1% to 2% rate increase would squeeze affordability.

That said, rate hikes look unlikely in the near term because the European Central Bank has signaled caution and Malta's inflation has settled around 2.5%, so the financing environment should remain stable.

Finally, please note that we cover the price trends for next year in our pack about the property market in Malta.

Could property prices jump again in Malta as of 2026?

As of early 2026, the likelihood of a renewed price surge in Malta is medium, meaning another strong year of gains is possible but a sudden spike is less likely than continued steady growth.

A plausible upside range for Malta property prices in 2026 would be +5% to +8%, with premium areas like Sliema and Valletta potentially outperforming if demand stays strong.

The single biggest demand-side trigger that could push prices higher in Malta is continued strong migration of foreign workers, because expats in sectors like iGaming, finance, and tech consistently fuel rental and purchase demand.

Please also note that we regularly publish and update real estate price forecasts for Malta here.

Are we in a buyer or a seller market in Malta as of 2026?

As of early 2026, Malta leans slightly toward a seller's market overall, because transaction volumes are rising year-on-year and prices continue to climb, giving sellers more leverage in negotiations.

While Malta doesn't publish a precise "months of inventory" figure like some countries, the fact that deeds increased about 8% year-on-year in late 2025 suggests available stock is being absorbed quickly, typically a sign of fewer than 6 months of supply in active areas.

At the same time, the 10% to 15% gap between asking and final prices in Malta shows that sellers who overprice still face pushback, meaning buyers have negotiating power when listings sit too long or when competing against similar new-build apartments.

We have made this infographic to give you a quick and clear snapshot of the property market in Malta. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

Are homes overpriced, or fairly priced in Malta as of 2026?

Are homes overpriced versus rents or versus incomes in Malta as of 2026?

As of early 2026, Malta homes appear somewhat stretched versus incomes but more fairly priced versus rents, because rental demand is strong enough to support purchase prices for investors, while affordability for local first-time buyers remains a real challenge.

The price-to-rent ratio in Malta sits around 25 to 28 years in prime areas like Sliema and St Julian's, which is higher than the 15 to 20 year range often considered balanced, suggesting that buyers are paying a premium and relying partly on future appreciation.

The price-to-income multiple in Malta is also elevated, with median property prices around 10 to 12 times the median household income, compared to a more comfortable benchmark of 5 to 7 times, which explains why many locals struggle to enter the market.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Malta.

Are home prices above the long-term average in Malta as of 2026?

As of early 2026, Malta property prices are estimated to be about 55% to 75% higher than they were a decade ago, which means current prices sit well above the long-term historical average in nominal terms.

The recent 12-month price change in Malta of about 5% to 7% is roughly in line with the pre-pandemic pace of around 6% to 8% annually, so the market is not overheating compared to its own recent history.

When adjusted for inflation, Malta property prices are still above the prior cycle peak from around 2007 to 2008, though the gap is less dramatic than it appears in nominal terms because inflation has eroded some of the headline gains.

What local changes could move prices in Malta as of 2026?

Are big infrastructure projects coming to Malta as of 2026?

As of early 2026, the biggest infrastructure projects in Malta are road and junction upgrades led by Infrastructure Malta, which can meaningfully improve livability and commute times in affected areas like the Marsa junction and routes connecting the central belt.

These projects are mostly already funded and under construction, with several junction improvements expected to complete within the next 1 to 3 years, which means buyers can reasonably factor them into their location decisions today.

For the latest updates on the local projects, you can read our property market analysis about Malta here.

Are zoning or building rules changing in Malta as of 2026?

The most important zoning change being discussed in Malta is the Development Planning (Amendment) Bill currently before Parliament, which could adjust how "minor modifications" are approved and how building heights are interpreted in certain zones.

As of early 2026, these planning rule changes could have a mixed effect on prices: areas where more development becomes allowed may see supply increase and prices moderate, while tightly controlled zones may see scarcity value protected or even rise.

The areas most affected by these rule changes in Malta would likely be the Northern Harbour region (Sliema, St Julian's, Gzira) and parts of central Malta where height policy interpretations could unlock new apartment projects or limit them further.

Are foreign-buyer or mortgage rules changing in Malta as of 2026?

As of early 2026, foreign-buyer rules in Malta remain largely stable, with non-EU buyers still subject to AIP (Acquisition of Immovable Property) requirements that set minimum purchase values around €143,000 for apartments and higher for other property types, updated periodically.

The most likely foreign-buyer rule change being considered is an adjustment to minimum property values and permit fees, which could modestly raise the entry barrier for non-residents but is unlikely to dramatically shift demand.

On the mortgage side, Malta has maintained prudent lending standards with loan-to-value limits and affordability stress tests, and no major tightening is expected in 2026, though banks remain cautious about high debt-to-income ratios.

You can also read our latest update about mortgage and interest rates in Malta.

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.

Will it be easy to find tenants in Malta as of 2026?

Is the renter pool growing faster than new supply in Malta as of 2026?

As of early 2026, renter demand in Malta is growing slightly faster than new rental supply in most areas, because registered rental contracts exceeded 70,000 by mid-2025 and continue to climb, driven by foreign workers and students.

The strongest signal of renter demand in Malta is the continued influx of third-country nationals working in iGaming, finance, and hospitality, who now make up over 90% of tenants in the registered rental market.

On the supply side, Malta approved about 8,700 dwelling permits in 2024 (up 7% from 2023), with apartments accounting for 86% of permits, so new stock is coming but mostly concentrated in specific pockets like the Northern Harbour region.

Are days-on-market for rentals falling in Malta as of 2026?

As of early 2026, days-on-market for rentals in Malta's prime areas like Sliema, St Julian's, and Gzira are typically just a few weeks for correctly priced units, suggesting the market absorbs quality listings quickly.

The gap in leasing speed is noticeable: well-located, furnished apartments in Malta's Northern Harbour often rent within 2 to 4 weeks, while units in less central areas like Zejtun or inland Gozo can take 6 to 10 weeks or longer.

One common reason days-on-market falls in Malta's best areas is undersupply relative to demand, because foreign workers arriving for new jobs often need housing quickly and compete for the same central locations.

Are vacancies dropping in the best areas of Malta as of 2026?

As of early 2026, vacancy rates in Malta's best rental areas like Sliema, St Julian's, Gzira, Msida, and Swieqi appear to be low and stable, with landlords in these locations typically finding tenants quickly due to sustained expat demand.

While Malta's overall dwelling vacancy rate is estimated around 18% nationally (one of the highest in the EU), this includes many older rent-controlled units and second homes, so the actual vacancy in market-rate rentals in prime areas is much lower.

A practical sign that these best areas are tightening first is when landlords start receiving multiple inquiries within days of listing, which is common in locations like St Paul's Bay (over 7,000 registered contracts) and Sliema (over 4,000 contracts).

By the way, we've written a blog article detailing what are the current rent levels in Malta.

Am I buying into a tightening market in Malta as of 2026?

Is for-sale inventory shrinking in Malta as of 2026?

As of early 2026, it's hard to give a precise inventory count for Malta because there's no official "active listings" database, but transaction volumes rising 4% to 5% year-on-year suggest that available stock is being absorbed at a healthy pace.

Using transaction momentum as a proxy, Malta's market appears to have fewer than 6 months of effective supply in high-demand areas, which typically favors sellers, though some new-build pockets have more competition among listings.

One likely reason inventory feels tight in Malta is the country's fundamental land constraint: at just 316 square kilometers, there's only so much space to build, which naturally limits how much new stock can flood the market at once.

Are homes selling faster in Malta as of 2026?

As of early 2026, homes in Malta's most desirable areas are selling within a few weeks to a couple of months when priced correctly, which suggests the market is healthy and turnover is not slowing down.

Year-on-year, the combination of rising deeds (up about 8% in late 2025) and continued price growth indicates that selling times have remained stable or even improved slightly compared to the same period in 2024.

Are new listings slowing down in Malta as of 2026?

As of early 2026, we don't have a precise year-on-year count of new listings in Malta because this isn't officially tracked, but building permits surged over 110% in Q3 2025 compared to Q3 2024, suggesting a wave of new supply is in the pipeline.

Malta's typical seasonal pattern sees more listings in spring and early summer, with a quieter winter period, so January is often not the peak for new inventory, though serious sellers still list year-round.

Is new construction failing to keep up in Malta as of 2026?

As of early 2026, new construction in Malta is keeping pace with demand in some areas but not in the most supply-constrained prime locations like Sliema and St Julian's, where land scarcity limits how much new stock can be added.

The recent trend in building permits shows a strong resurgence, with about 8,700 units approved in 2024 and Q3 2025 seeing a remarkable 110% year-on-year jump, so the pipeline is active but concentrated mostly in apartments.

The single biggest bottleneck limiting new construction in Malta is land availability, because the island is densely built and planning restrictions in heritage zones or height-controlled areas slow down development.

We made this infographic to show you how property prices in Malta compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

Will it be easy to sell later in Malta as of 2026?

Is resale liquidity strong enough in Malta as of 2026?

As of early 2026, resale liquidity in Malta is reasonably strong for apartments and maisonettes in popular locations, with correctly priced properties typically selling within a few weeks to 2 to 3 months.

The median days-on-market for resale homes in Malta's prime areas hovers around 4 to 8 weeks for move-in-ready apartments, which compares well to a "healthy liquidity" benchmark of under 90 days.

The property characteristic that most improves resale liquidity in Malta is location: apartments in Sliema, St Julian's, Gzira, and Msida sell faster than comparable units in less connected or less desirable inland areas.

Is selling time getting longer in Malta as of 2026?

As of early 2026, selling time in Malta does not appear to be lengthening compared to last year, because transaction volumes are up and prices are still climbing, which typically means properties are moving at a steady pace.

The current median days-on-market in Malta ranges from about 4 weeks in the hottest areas to 3 to 4 months for properties that are overpriced, need renovation, or sit in less desirable locations.

One clear reason selling time can lengthen in Malta is affordability pressure: when sellers price based on "aspirational" asking prices rather than recent comparable sales, buyers push back and listings sit longer.

Is it realistic to exit with profit in Malta as of 2026?

As of early 2026, the likelihood of exiting with a profit in Malta is medium to high if you hold for at least 5 years and buy at a fair price, because steady annual growth of 4% to 7% can outpace transaction costs over time.

The minimum holding period that most often makes exiting with profit realistic in Malta is about 5 years, since you need price appreciation to cover buying and selling costs before you see real gains.

The estimated total round-trip cost drag in Malta, including stamp duty (around 5%), notary fees, and agent commissions, adds up to roughly 8% to 12% of the purchase price (about €24,000 to €36,000 on a €300,000 property, or $28,000 to $42,000 USD).

One clear factor that most increases profit odds in Malta is buying below market value, whether through negotiation, off-market deals, or purchasing units that need cosmetic updates and can be improved for resale.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Malta, we always rely on the strongest methodology we can, and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source	Why it's authoritative	How we used it
National Statistics Office Malta (NSO)	Malta's official statistics agency publishing transaction-based price data.	We used their Residential Property Price Index as the ground truth for how actual transacted prices are moving. We also relied on their monthly transaction counts to gauge demand momentum.
Central Bank of Malta	Malta's central bank compiling vetted macro and housing indicators.	We used their Quarterly Review and real economy indicators to cross-check price signals. We also referenced their affordability research to frame price-to-income discussions.
Housing Authority Malta	The regulator administering registered rental contracts using administrative data.	We used their rental contract counts to measure tenant demand depth. We also identified which localities have the highest concentration of rentals.
European Central Bank (ECB)	The primary euro-area source for harmonized bank rate statistics.	We used their interest rate data as an external cross-check on Malta financing conditions. We also relied on ECB policy signals to assess future rate risk.
Eurostat	The EU's official statistical authority for harmonized data across member states.	We used their House Price Index to benchmark Malta against the euro area cycle. We also sanity-checked whether Malta is outpacing Europe.
Malta Tax and Customs Administration (MTCA)	The official government tax authority explaining binding purchase rules.	We used their AIP FAQ to clarify what applies to foreign buyers. We treated it as the definitive reference over any agency blog.
Parliament of Malta	The official parliamentary page for legislation under consideration.	We used it to verify that planning-rule changes are real legislative proposals. We framed zoning and height policy uncertainty as concrete risk factors.
Government of Malta (gov.mt)	The official government portal for press releases and public consultations.	We used their consultation documents to describe proposed planning control changes. We also verified rental registration milestones from official statements.
Infrastructure Malta	The national agency responsible for major road and infrastructure works.	We used their project list to identify place-specific infrastructure upgrades. We avoided generic "infrastructure is coming" claims by referencing actual pipeline projects.
Global Property Guide	An independent international source compiling property market data.	We used their Malta analysis to cross-reference economic growth forecasts and rental market context. We verified our own estimates against their published figures.

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Malta. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.