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
If you're thinking about buying property in Malta, you're probably wondering what prices actually look like right now and where they might be heading.
This article breaks down the current housing prices in Malta, recent trends, and our forecasts for the coming years, all in plain language.
We constantly update this blog post with fresh data from official sources, so you're always getting the latest picture of the Malta property market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Malta.
Insights
- Malta's official house price index shows a 5.6% yearly increase in Q2 2025, which is notably cooler than the double-digit growth the island saw five years ago, suggesting the market is maturing rather than overheating.
- Maisonettes in Malta are outperforming apartments with 6.7% annual price growth versus 5.2%, as buyers increasingly pay a premium for private entrances and more living space.
- Around 75% of new residential building permits in Malta are for apartments, which could soften price growth in high-build localities like San Pawl il-Bahar over the next few years.
- Foreign workers now make up nearly 32% of Malta's working-age population, up from just 2.5% in 2000, creating sustained housing demand that supports long-term property values.
- The ECB's deposit facility rate sits at 2.00% as of mid-2025, meaning borrowing costs are materially higher than the near-zero levels from 2015 to 2021, which caps how much buyers can stretch.
- Malta's population reached about 574,000 at the end of 2024, with net migration adding over 10,600 people in a single year, and this inflow directly fuels rental and purchase demand.
- Gross rental yields in Malta average around 4%, but prime areas like Sliema now show compressed yields of 2.2% to 2.6% because property prices have risen faster than rents.
- The typical gap between Malta listing prices and final sale prices is about 10% to 18%, so buyers who negotiate well can secure meaningful discounts, especially on older or overpriced units.
What are the current property price trends in Malta as of 2026?
What is the average house price in Malta as of 2026?
As of early 2026, the typical transacted home price in Malta sits at around €310,000 (approximately $365,000 or £260,000), which reflects what buyers are actually paying when final deeds are registered with the tax authority.
To give you a better sense of value, the average price per square meter for residential property in Malta in 2026 is approximately €3,200 per sqm (about $3,800 or £2,700 per sqm), though this varies quite a bit depending on the area and finish quality.
If you're wondering what most people actually spend, roughly 80% of property purchases in Malta fall within a price range of €220,000 to €550,000 (around $260,000 to $650,000 or £185,000 to £460,000), which gives you a realistic budget window for your search.
How much have property prices increased in Malta over the past 12 months?
Property prices in Malta have increased by approximately 6% over the past 12 months, which represents a solid but measured pace compared to the double-digit jumps we saw in earlier years.
Looking at specific property types, the price increases in Malta over the past year range from about 5% for standard apartments to nearly 7% for maisonettes, showing that formats with more space and privacy are commanding a premium.
The single biggest factor behind this price movement in Malta is the continued influx of foreign workers and professionals, which keeps demand high even as borrowing costs have risen from their historic lows.
Which neighborhoods have the fastest rising property prices in Malta as of 2026?
As of early 2026, the neighborhoods with the fastest rising property prices in Malta are Sliema, St Julian's, and Gżira, all located in the Northern Harbour district where demand from professionals and expats remains exceptionally strong.
These top-performing neighborhoods in Malta are seeing annual price growth of roughly 7% to 9%, with Sliema and St Julian's at the higher end due to their coastal locations and premium amenities, while Gżira benefits from its proximity to these hubs at slightly lower entry prices.
The main driver behind these fast-rising prices in Malta's Northern Harbour areas is the concentration of employment in financial services, gaming, and technology, combined with the lifestyle appeal of waterfront living and walkable urban amenities.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Malta.
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.
Which property types are increasing faster in value in Malta as of 2026?
As of early 2026, the property types in Malta ranked by value appreciation are maisonettes in first place, followed by terraced houses, and then apartments, with villas showing more variable performance depending heavily on location.
The top-performing property type in Malta, maisonettes, is appreciating at approximately 6.7% per year according to the official NSO price index, which is noticeably faster than the overall market average.
The main reason maisonettes are outperforming other property types in Malta is that buyers increasingly value private entrances, outdoor space, and a more house-like feel, especially after the pandemic shifted priorities toward liveability over pure location convenience.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
What is driving property prices up or down in Malta as of 2026?
As of early 2026, the top three factors driving property prices in Malta are government demand-support schemes for buyers, strong tourism performance that supports rental yields, and continued population growth from foreign worker inflows.
The single factor with the strongest upward pressure on Malta property prices is demographic growth, as the country's population rose by nearly 11,000 people in 2024 alone through net migration, and these newcomers need places to live whether they rent or buy.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Malta here.
Get fresh and reliable information about the market in Malta
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What is the property price forecast for Malta in 2026?
How much are property prices expected to increase in Malta in 2026?
As of early 2026, property prices in Malta are expected to increase by approximately 4% to 5% over the course of the year, representing steady but more measured growth compared to the faster appreciation of previous years.
The range of forecasts from different analysts for Malta property price growth in 2026 spans from a conservative 3% at the low end to an optimistic 6% at the high end, depending on assumptions about interest rates and supply absorption.
The main assumption underlying most price forecasts for Malta is that the economy will continue growing at 3.5% to 4%, tourism will remain robust, and net migration will keep adding housing demand faster than new supply can fully satisfy it.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Malta.
Which neighborhoods will see the highest price growth in Malta in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Malta are Gżira, Swieqi, and Pembroke, all benefiting from strong employment proximity, lifestyle appeal, and relatively limited new supply compared to demand.
These top Malta neighborhoods are projected to see price growth of 6% to 8% in 2026, outpacing the national average because they combine coastal desirability with good transport links to the main business districts.
The primary catalyst driving expected growth in these Malta neighborhoods is their appeal to young professionals and expat families who want walkable amenities, sea views, and reasonable commute times to Sliema, St Julian's, and the Valletta area.
One emerging neighborhood in Malta that could surprise with higher-than-expected growth is Marsaskala on the southeast coast, where improving infrastructure and lower entry prices are attracting buyers priced out of the Northern Harbour premium belt.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Malta.
What property types will appreciate the most in Malta in 2026?
As of early 2026, the property type expected to appreciate the most in Malta is maisonettes, continuing the trend we've already seen where buyers pay a premium for more living space and a house-like layout without the full price of a villa.
Maisonettes in Malta are projected to appreciate by approximately 6% to 7% in 2026, slightly ahead of the overall market, driven by limited supply of this format in desirable areas.
The main demand trend driving maisonette appreciation in Malta is the preference among families and remote workers for properties with outdoor space, separate levels, and more room to breathe, which standard apartments simply cannot offer.
On the other hand, the property type expected to underperform in Malta in 2026 is standard studio and one-bedroom apartments in high-supply zones like parts of San Pawl il-Bahar, where a flood of new building permits is creating competition that limits price growth.
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.
How will interest rates affect property prices in Malta in 2026?
As of early 2026, the impact of current interest rates on Malta property prices is moderating, as the ECB's deposit facility rate of 2.00% is much higher than the near-zero levels of the mid-2010s, which means buyers cannot borrow as much relative to their income.
The current benchmark rate shaping mortgage costs in Malta is the ECB's deposit facility rate at 2.00%, and most analysts expect rates to remain relatively stable through 2026 unless inflation surprises to the upside, which would pause or reverse any further cuts.
As a rough guide, a 1% change in interest rates typically affects property affordability in Malta by shifting the maximum mortgage amount a typical buyer can afford by around 8% to 10%, which translates into noticeable but not dramatic price pressure in either direction.
You can also read our latest update about mortgage and interest rates in Malta.
What are the biggest risks for property prices in Malta in 2026?
As of early 2026, the three biggest risks for property prices in Malta are an oversupply of apartments in high-build localities, a potential tourism slowdown that would hurt rental yields, and any unexpected upward move in interest rates that would squeeze buyer affordability.
The single risk with the highest probability of materializing in Malta is the supply overhang in apartment-heavy areas, since building permits have surged in recent years with apartments making up roughly 75% of approvals, and this new stock needs to be absorbed without flooding the market.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Malta.
Is it a good time to buy a rental property in Malta in 2026?
As of early 2026, buying a rental property in Malta can be a solid investment if you choose the right location and property type, though it requires more careful selection than in the easy-money years when almost anything performed well.
The strongest argument for buying a rental property in Malta now is that structural demand from foreign workers, expats, and tourists remains robust, especially in employment hubs like Sliema, St Julian's, Gżira, and Msida where occupancy stays high year-round.
The strongest argument for waiting before buying a rental property in Malta is that gross yields have compressed in prime areas to around 2% to 4%, meaning you're increasingly betting on capital appreciation rather than cash flow, which adds risk if prices plateau.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Malta.
You'll also find a dedicated document about this specific question in our pack about real estate in Malta.
Buying real estate in Malta can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Malta?
What is the 5-year property price forecast for Malta as of 2026?
As of early 2026, property prices in Malta are expected to grow by a cumulative 20% to 35% over the next five years, which translates to roughly doubling your equity if you buy at the lower end of this range and the market performs as expected.
The range of 5-year forecasts for Malta spans from a conservative scenario of about 20% total growth (if supply outpaces demand and rates stay elevated) to an optimistic scenario of 35% or more (if migration stays strong and the economy outperforms).
This works out to a projected average annual appreciation rate of approximately 4% to 6% per year over the next five years in Malta, which is solid but not spectacular compared to the faster growth of the 2015 to 2020 period.
The key assumption most forecasters rely on for their 5-year Malta property predictions is that the island's economic model remains intact, meaning continued strength in financial services, gaming, and tourism, combined with sustained worker inflows that keep housing demand elevated.
Which areas in Malta will have the best price growth over the next 5 years?
The top three areas in Malta expected to have the best price growth over the next five years are the Northern Harbour coastal core (Sliema, St Julian's, Gżira, Pembroke, Ta' Xbiex), the central family belt (Birkirkara, Mosta, Naxxar, San Ġwann), and select Gozo localities like Victoria/Rabat and Marsalforn.
These top-performing Malta areas are projected to see 5-year cumulative price growth of 25% to 40%, with the Northern Harbour at the higher end due to persistent scarcity and premium demand, and central localities offering more balanced growth with better affordability.
This 5-year forecast is quite consistent with our shorter 2026 forecast, but the central family belt becomes relatively more attractive over the longer horizon because its lower entry prices leave more room for appreciation as buyers get priced out of prime coastal areas.
One currently undervalued area in Malta with the best potential for outperformance over 5 years is the Three Cities zone (Birgu, Bormla, Isla), where heritage charm, waterfront views, and ongoing regeneration could attract buyers seeking Valletta-adjacent living at a fraction of the price.
What property type will give the best return in Malta over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over 5 years in Malta is well-located 2 to 3 bedroom apartments in established areas, which offer the optimal combination of rental demand, resale liquidity, and steady appreciation.
The projected 5-year total return for this top-performing property type in Malta, combining both appreciation and rental income, is approximately 35% to 50%, assuming you buy in a high-demand locality and maintain good occupancy.
The main structural trend favoring apartments over the next 5 years in Malta is demographic: most new arrivals are single professionals or small households who need practical, well-located units rather than large family homes, and this keeps demand focused on the apartment segment.
For investors seeking the best balance of return and lower risk over 5 years in Malta, maisonettes in central localities like Birkirkara or Mosta offer solid appreciation potential with less volatility than prime-area apartments, plus the space premium provides some downside protection.
How will new infrastructure projects affect property prices in Malta over 5 years?
The top three major infrastructure projects expected to impact property prices in Malta over the next five years are the Msida Creek Project (road and traffic improvements), ongoing upgrades to the Marsa junction area, and continued development of ferry and marine transport links connecting Valletta to surrounding harbors.
The typical price premium for properties near completed infrastructure projects in Malta is around 5% to 15% compared to similar properties without the accessibility improvement, with the premium highest in areas that were previously bottlenecked.
The specific neighborhoods in Malta that will benefit most from these infrastructure developments are Msida, Pietà, Gżira, Ta' Xbiex, and Santa Venera, all of which feed into the Msida Creek node and will see improved traffic flow and connectivity once works complete.
How will population growth and other factors impact property values in Malta in 5 years?
The projected population growth rate in Malta is approximately 1% to 2% per year through net migration, and this steady inflow is expected to add meaningful upward pressure on property values over the next five years, particularly in areas where supply cannot keep pace.
The demographic shift that will have the strongest influence on property demand in Malta is the continued growth of working-age foreign residents, who now make up nearly one-third of the labor force and tend to concentrate in rental markets and entry-level purchases near employment hubs.
International migration patterns are expected to keep pushing property values higher in Malta over 5 years, as the country remains a magnet for workers in financial services, gaming, and technology, plus retirees and lifestyle seekers attracted by the Mediterranean climate and EU membership.
The property types and areas in Malta that will benefit most from these demographic trends are apartments in the Northern Harbour district and central belt, which offer the practical, well-connected housing that incoming professionals and families need when relocating to the island.
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.
What is the 10 year property price outlook in Malta?
What is the 10-year property price prediction for Malta as of 2026?
As of early 2026, property prices in Malta are expected to grow by a cumulative 45% to 80% over the next 10 years, which represents solid long-term wealth building for patient investors who buy in the right locations.
The range of 10-year forecasts for Malta spans from a conservative scenario of about 45% total growth (if the economy faces headwinds and supply accelerates) to an optimistic scenario of 80% or more (if migration stays robust and Malta maintains its competitive advantages).
This works out to a projected average annual appreciation rate of approximately 3.8% to 6% per year over the next decade in Malta, which is healthy for a mature European market with limited land.
The biggest uncertainty factor in making 10-year property price predictions for Malta is how the island's economic model evolves, since any major shift in the competitiveness of financial services, gaming regulation, or EU policy on tax structures could significantly alter demand dynamics.
What long-term economic factors will shape property prices in Malta?
The top three long-term economic factors that will shape property prices in Malta over the next decade are sustained GDP and employment growth driven by services exports, the interest rate environment which affects borrowing power and investor yields, and the supply-demand balance as building activity responds to market signals.
The single long-term economic factor that will have the most positive impact on property values in Malta is the country's ability to keep attracting high-value industries and skilled workers, which creates the income base and population growth that ultimately supports housing demand.
The single long-term economic factor that poses the greatest structural risk to property values in Malta is the island's dependence on a few key sectors like gaming and financial services, since any regulatory or competitive pressure on these industries could reduce inflows and weaken demand.
You'll also find a much more detailed analysis in our pack about real estate in Malta.
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 |
|---|---|---|
| Malta NSO - Residential Property Price Index | Official government index based on registered transactions. | We used this as our baseline for Malta's property price trends and growth rates. We anchored all trend statements to this official data. |
| Malta NSO - Residential Property Transactions | Official transaction data recorded with Malta's tax authority. | We used this to estimate typical transaction values and identify which localities have the most sales activity. |
| Malta NSO - Residential Building Permits | Official supply-side data from Malta's Planning Authority. | We used this to assess future supply pressure and identify which property types dominate new approvals. |
| Central Bank of Malta - Quarterly Review | National central bank's authoritative macro and housing analysis. | We used this to cross-check NSO data and understand the economic drivers behind Malta's housing market. |
| Central Bank of Malta - Economic Outlook | Official forecast hub for Malta's economy. | We used this to ground our 2026 and multi-year forecasts on GDP, employment, and credit conditions. |
| European Commission - Malta Economic Forecast | EU's official forecast with consistent methodology across countries. | We used this to triangulate the macro outlook and ensure our forecasts weren't relying on a single source. |
| European Central Bank - Key Interest Rates | Official record of euro-area policy rates affecting Malta mortgages. | We used this to anchor the interest rate environment shaping borrowing costs and investor behavior. |
| IMF - Malta 2025 Article IV Statement | IMF staff assessment based on in-country consultations. | We used this to stress-test our downside scenarios and understand Malta's medium-term economic risks. |
| KPMG Malta - Construction & Property Report 2025 | Major consulting firm with structured, published market data. | We used this to estimate typical asking prices and apartment sizes for our price-per-sqm calculations. |
| Infrastructure Malta - Msida Creek Project | Government entity delivering major road infrastructure. | We used this to identify which neighborhoods could see demand uplift from improved accessibility. |
| Malta NSO - Population Statistics | Official demographic data from Malta's national statistics office. | We used this to quantify population growth and migration flows that drive housing demand. |
| Global Property Guide - Malta Rental Yields | Established international property research platform. | We used this to benchmark rental yields across different Malta localities and property types. |
| Trading Economics - Malta Housing Index | Reputable economic data aggregator sourcing from Eurostat. | We used this to verify index levels and track quarterly movements in Malta's official HPI. |
| Central Bank of Malta - Demographics Policy Note | Central bank research on population and labor market dynamics. | We used this to understand how foreign migration shapes Malta's housing demand structure. |
| Global Property Guide - Malta Market Analysis | International property research with detailed country profiles. | We used this for historical context and to cross-reference our findings on Malta's market fundamentals. |
Get the full checklist for your due diligence in Malta
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
If you want to go deeper, you can read the following: