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Thinking about buying a 3-bedroom apartment in Sliema? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other localities like Valletta or St. Julian's where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Malta Property Pack.
Will property prices increase in Malta in 2025?
Yes, property prices in Malta are expected to rise in 2025, driven by a combination of high demand and limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Malta remains an attractive destination for both domestic and international investors.
While there are some economic challenges like inflation and rising interest rates, the main drivers behind Malta’s price growth remain strong.
Demand, especially in prime areas, continues to outpace supply, making significant price drops unlikely. Additionally, Malta's appeal as a Mediterranean lifestyle destination continues to attract buyers from around the world.
Signals pointing to a property price increase in Malta
Here are some factors suggesting prices could increase:
The limited availability of land for new developments in Malta is expected to persist, keeping supply constrained and pushing property prices upward, particularly in sought-after coastal areas.
Malta's economy is projected to grow steadily in 2025, bolstered by sectors such as tourism and financial services, which will likely increase demand for residential properties.
Government initiatives aimed at attracting foreign investment, including favorable tax regimes and residency programs, are expected to continue, drawing more international buyers to the Maltese property market.
The ongoing trend of digital nomads and remote workers choosing Malta for its favorable climate and lifestyle is expected to boost demand for rental properties, indirectly supporting property price growth.
Infrastructure improvements, such as enhancements to public transportation and road networks, are anticipated to increase the attractiveness of certain areas, leading to higher property values.
Signals pointing to a property price decrease in Malta
Here are some factors suggesting prices could fall:
Rising construction costs, driven by global supply chain disruptions and increased material prices, could slow down new developments, potentially impacting the overall market dynamics.
Higher interest rates, which are expected to stabilize but remain elevated compared to previous years, may deter some potential buyers, particularly those relying on mortgages.
Economic uncertainties in the Eurozone, including potential impacts from geopolitical tensions, could affect investor confidence and slow down the influx of foreign buyers.
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If property prices go up in Malta, how much would they increase by?
If real estate prices in Malta were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in dynamic markets like Malta appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Sliema for 300,000 euros today, don't be surprised if it's priced between 309,000 and 321,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Maltese real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Seafront Apartment (60 sqm / 646 sqft) | €350,000 | €360,500 | €367,500 | €374,500 |
| Modern Apartment (75 sqm / 807 sqft) | €450,000 | €463,500 | €472,500 | €481,500 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | €1,000,000 | €1,030,000 | €1,050,000 | €1,070,000 |
| Studio (30 sqm / 323 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
| Loft (80 sqm / 861 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Townhouse (150 sqm / 1,615 sqft) | €800,000 | €824,000 | €840,000 | €856,000 |
| Investment Property (50 sqm / 538 sqft) | €250,000 | €257,500 | €262,500 | €267,500 |
Everything you need to know is included in our Property Pack for Malta
If real estate prices go up in Malta, which areas are likely to see the biggest increases?
Today, people who want to move to Malta are looking for a blend of historical charm and modern amenities, which Valletta offers. Hence, we could see a price increase there in 2025.
Additionally, there's been a growing interest in vibrant, youthful neighborhoods, and Sliema has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Maltese market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Valletta | High | Recent restoration projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Sliema | High | Expected rise due to limited housing stock, upcoming luxury developments, and growing demand for prime properties along the coast. |
| St. Julian's | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Gzira | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Mellieha | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Mdina | Medium | Investment in local infrastructure, such as the extension of transport links and renovation of historic areas, is boosting long-term value. |
| Marsaxlokk | Medium-High | With new cultural and commercial spaces being developed, this picturesque fishing village is seeing increased demand from both residents and investors. |
| Birgu (Vittoriosa) | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Birkirkara | Medium-High | Its central location, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Rabat | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Gozo | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Comino | High | Upcoming restoration of natural landscapes and high-profile eco-tourism projects are driving a renewed focus on this serene, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation?
In 2025, Malta real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Valletta and other key towns in Malta are seeing increased interest. Proximity to beaches, green spaces, and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In densely populated areas like Sliema and St. Julian's, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Malta's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the island’s green goals, leading to price appreciation in this category.
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