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
Why is Malta emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the thriving tourism sector, or the competitive pricing compared to other European markets? What are the key benefits for investors?
We often encounter these questions because we are actively engaged with developers, real estate agents, and investors like you. With growing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a compelling case for investing in Malta's real estate market, supported by our firsthand experience and market expertise.
If you feel we've overlooked an important aspect or want more information, please reach out (we respond very quickly). Your feedback enhances our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
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1) In Malta, a strong banking sector makes property financing and investment easier for you
Malta's banking sector is a powerhouse, crucial for property financing and investment.
With high credit ratings, Maltese banks are seen as stable and reliable, making them trustworthy partners for property buyers. This stability means that when you're looking to finance a property, you can count on the banks to be financially healthy and supportive.
Malta's banks also boast low non-performing loan ratios, with mortgages at just 1.3% and non-financial corporations at 3.6% in early 2024. This low risk of default gives banks the confidence to lend, knowing borrowers are likely to repay their loans.
Another strength is the banks' strong capital adequacy ratios. With a total capital ratio of 25.5% and a Liquidity Coverage Ratio (LCR) of 361.0% in the first half of 2024, Maltese banks are well-prepared to meet property financing demands. This means they have plenty of funds available for real estate transactions.
High liquidity levels are a big plus, ensuring that banks can provide the necessary funds for property deals. This support is vital for keeping the real estate market thriving and accessible to buyers.
So, if you're considering buying property in Malta, rest assured that the banking sector's strength and stability are on your side, making the process smoother and more secure.
Sources: Central Bank of Malta
2) Malta’s location makes it a convenient travel hub for exploring Europe
Malta is perfectly placed in the Mediterranean, making it a strategic travel hub for Europe.
With Malta International Airport (MLA) offering over 100 direct routes to 35 countries, getting around Europe is a breeze. Major airlines like Ryanair and easyJet have set up shop here, ensuring flights are available all year. In 2024, Ryanair even added new routes from cities like Belfast and Rome, making travel even more convenient.
Passenger numbers at the airport have been soaring, with over 7.8 million travelers in 2023 and expectations to exceed eight million in 2024. This surge is thanks to Malta's short travel times to major European cities, which is a big draw for both business and leisure travelers.
Imagine hopping on a plane and being in a bustling European city in no time. That's the reality for those in Malta, where quick trips to Europe are the norm. Whether it's a business meeting in London or a weekend getaway in Paris, Malta's location makes it all possible.
For those considering buying property here, this connectivity is a huge plus. You can enjoy the island's charm while having easy access to the rest of Europe. It's like having the best of both worlds.
So, if you're thinking about making Malta your home, remember that its proximity to Europe is a major advantage. It's not just about the beautiful beaches and rich history; it's also about being connected to the world.
Sources: Aviation Week, Square Deal
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.
3) The country's strong GDP growth keeps the real estate market healthy
Malta's real estate market is thriving thanks to its strong GDP growth.
In 2023 and 2024, Malta's economy showed impressive growth, with forecasts predicting a 4.9% GDP increase in 2024. This kind of economic performance is a magnet for foreign investors, who are drawn to the island's potential. As more investors come in, the demand for both residential and commercial properties rises, giving the real estate market a significant boost.
Another factor bolstering the market is Malta's low unemployment rate. In 2024, it dropped to 3.1%, reflecting a robust job market. This stability means people feel more confident about spending, including on real estate. When people have secure jobs, they're more likely to invest in homes, which keeps the market lively.
Government incentives are also a big draw. Programs like the first-time buyer stamp duty exemption and property renovation incentives make it easier for people to dive into the real estate market. These initiatives are designed to encourage investment, and they do just that, adding more fuel to the market's growth.
Malta's real estate scene is not just about numbers; it's about a dynamic environment where economic growth, low unemployment, and smart government policies come together. This combination creates a thriving market that's attractive to both local and international buyers.
For anyone considering buying property in Malta, these factors make it an appealing option. The island's economic health and supportive policies provide a solid foundation for real estate investments.
Sources: Central Bank of Malta, Sara Grech Real Estate, European Commission
4) With a lively expat community, Malta offers steady demand for rental properties
Malta's lively expat community is a key driver of consistent demand for rental properties.
In 2023, Malta's population grew by 21,000 people, with 42,000 newcomers, including many from the EU and beyond. This influx naturally boosts the need for housing, especially rentals. The island's appeal to foreign workers and digital nomads is evident, as the number of foreigners employed in Malta increased by 17% annually from 2017 to 2022. Malta's digital nomad permit is also gaining traction, with a 65% rise in applications, showing a trend towards short-term stays that often depend on rental homes.
Government incentives make Malta attractive for foreign businesses and professionals, indirectly supporting the rental market. Fiscal perks for highly qualified foreign workers and tax credits for companies setting up shop in Malta make the island a magnet for expatriates. These expats often choose renting over buying when they relocate.
Malta's strategic location in the Mediterranean, coupled with its English-speaking environment, makes it a preferred destination for international companies and remote workers. The island's vibrant lifestyle, rich history, and favorable climate add to its allure, drawing in a diverse crowd looking for temporary homes.
With a growing number of international schools and healthcare facilities, Malta is also becoming a family-friendly destination for expats. This further fuels the demand for rental properties, as families often seek flexible living arrangements when moving abroad.
As Malta continues to attract a global workforce, the rental market remains robust, offering opportunities for property investors. The island's unique blend of culture, business opportunities, and lifestyle makes it a compelling choice for those seeking a dynamic living environment.
Sources: Lovin Malta, Attard Baldacchino, PwC Malta
5) Malta’s prime spot in the Mediterranean makes it a hotspot for international businesses, increasing housing demand
Malta's prime spot in the Mediterranean is a magnet for international businesses.
In 2023, Malta saw a surge in Foreign Direct Investment, thanks to its business-friendly vibe and strategic location. This makes it a perfect launchpad for companies eyeing Europe and beyond. Tech giants like Google, Amazon, and Microsoft have set up shop here, lured by Malta's appealing tax policies and skilled workforce. Their presence is a big boost to Malta's financial and tech sectors, which in turn strengthens the economy.
With more international businesses, there's been a noticeable rise in the expatriate population in Malta. Many are drawn by job opportunities in the booming finance and tech industries. This influx has led to a spike in demand for rental properties, as noted by real estate agencies, pushing property prices higher.
Sources: National Statistics Office (NSO) - Malta, Google, Amazon, Microsoft Establish Operations in Malta, Expatriate Population in Malta, Real Estate Market Reports
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6) With tech and gaming industries booming, more people need homes
The tech and gaming industries in Malta are booming, significantly boosting the country's economy.
In 2023, the tech sector alone made up 7% of Malta's GDP and provided jobs for around 16,000 people. Meanwhile, the gaming industry added €1.34 billion in gross value, employing about 5.2% of the workforce. This growth has turned Malta into a magnet for tech and gaming companies, making it a major hub.
Malta's tech startup scene is thriving, with a combined enterprise value of €4.6 billion. The country also licenses 10% of the world's online gaming companies. This influx of businesses naturally leads to a higher demand for residential properties, as more professionals move to the area.
The government is actively encouraging this trend by offering special visas and tax benefits to tech and gaming businesses. This makes Malta an attractive destination for tech professionals, resulting in a growing expatriate community. This community, particularly in the tech and gaming sectors, is further driving the need for housing.
Living in Malta offers a unique blend of Mediterranean lifestyle and career opportunities in a rapidly growing industry. The island's appeal is not just its economic prospects but also its vibrant culture and beautiful landscapes, making it a desirable place to settle.
Sources: Business Now, Nucamp
7) Malta’s excellent healthcare makes it a top choice for expats and retirees
Malta's healthcare system is a big reason why expatriates and retirees are drawn to the country.
In 2023, the World Health Organization ranked Malta #5 globally for its healthcare system, which speaks volumes about its quality and reliability. This high ranking isn't just a number; it reflects the real experiences of many who have moved to Malta and found the healthcare to be top-notch. People often share stories about the efficiency and high standards they encounter, making it a comforting choice for those considering a move.
For many expatriates, healthcare is a crucial factor when deciding where to live, and Malta ticks that box with flying colors. Surveys consistently show that healthcare is a key reason why people choose Malta as their new home. It's not just about the quality; it's about the peace of mind knowing that excellent care is readily available.
Malta's universal healthcare system is another big plus. It offers comprehensive care to both residents and expatriates, with many services available at no direct cost to those eligible. This accessibility is a game-changer, making it easier for foreign residents to settle in without worrying about healthcare expenses.
Imagine living in a place where you don't have to stress about healthcare bills, and you can see why Malta is so appealing. The system is designed to be inclusive, ensuring that everyone, including expatriates, can access the care they need without financial strain.
For those considering a move, knowing that Malta offers such a robust healthcare system can be a deciding factor. It's not just about the sun and sea; it's about living in a place where your health is in good hands.
Sources: Global Citizen Solutions, Portico and Bridge, Wikipedia
8) In Malta, limited land means your property value will likely go up over time
Malta's limited land availability is a key factor in the steady rise of property values.
With just 316 square kilometers of land, Malta is the smallest EU nation, leading to a high population density and limited space for new developments. This scarcity keeps the housing supply tight, which naturally pushes property prices up. In recent years, particularly in 2023 and 2024, property prices have been climbing, and experts predict a further 3% to 7% increase in 2025.
The demand for housing is intense, driven by the island's high population density, making it tough to find affordable options. This demand, coupled with the limited supply, boosts the value of existing properties. Government restrictions on land development, aimed at preserving Malta's natural beauty and historical sites, add to the scarcity of available land.
Foreign investors are consistently drawn to Malta, thanks to its strategic Mediterranean location and lifestyle appeal. This influx of international buyers further fuels demand, supporting the upward trend in property values. The island's strong economic performance also plays a role, making it an attractive destination for property investment.
Malta's charm as a lifestyle destination is undeniable, attracting buyers from all over the globe. This global interest, combined with the limited land and high demand, ensures that property values continue to rise. The island's unique position in the Mediterranean makes it a sought-after location for those looking to invest in real estate.
Sources: EIB, My Golden Visa, The New Global Order
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.
9) In Malta, you’ll have clear property ownership rights thanks to its efficient legal system
Malta is known for its efficient legal system that ensures clear property ownership rights.
In recent years, Malta has consistently performed well in international rankings, particularly in the World Bank's Ease of Doing Business Index. This is largely due to its strong performance in property registration and transfer, making it a reliable choice for property buyers.
Property disputes in Malta are rare, highlighting the clarity and efficiency of its property laws. While specific numbers aren't available, the stability of the legal framework is evident in the low incidence of disputes, which is a testament to the system's effectiveness.
When it comes to buying property, the process in Malta is notably smooth, typically taking about 3-4 months to complete. This efficiency is often praised by foreign investors who find the market easy to navigate, adding to the appeal of investing in Maltese real estate.
The Maltese courts play a crucial role in maintaining this efficiency by strongly enforcing property laws. This enforcement not only protects property rights but also ensures that any disputes are resolved swiftly, fostering trust in the system.
Overall, the satisfaction rates among property owners in Malta are high, thanks to the reliable legal framework and efficient processes that support property transactions. This makes Malta an attractive destination for those looking to invest in property.
Sources: Malta Accom - Economy and Finance, Property Buying Process in Malta, Malta's Residential Property Market Analysis 2024
10) Malta’s mild climate attracts retirees, increasing the demand for housing
Malta's mild climate makes it a top choice for retirees.
Imagine living in a place where winters are mild and summers are warm. That's Malta for you. This Mediterranean gem has become a magnet for retirees who crave a comfortable climate all year round. It's not just the weather; it's the lifestyle that comes with it.
Over the years, Malta has seen a noticeable rise in foreign retirees. By 2021, foreigners made up 22.2% of the population, with many settling in bustling areas like Sliema and St. Julian's. This influx has fueled the real estate market, with more and more properties being snapped up by those looking to enjoy their golden years in style.
Malta consistently ranks as a top retirement destination in media and surveys. It's not just the climate that draws people in; it's also the island's reputation for safety and its high-quality healthcare system. These elements make Malta a haven for those seeking a peaceful and fulfilling retirement.
For anyone considering a move, the demand for residential properties in Malta is on the rise. The island's appeal is undeniable, with its blend of natural beauty and modern amenities. Retirees are finding that Malta offers a unique combination of comfort and convenience.
With its mild climate and welcoming atmosphere, Malta is more than just a place to live; it's a place to thrive. The island's charm and livability continue to attract retirees from all over, making it a sought-after destination for those looking to enjoy life to the fullest.
Sources: Wikipedia, JK Properties, Global Citizens Solutions
11) Malta’s bilingual population makes it appealing to international buyers and renters
Malta's bilingual population, fluent in both English and Maltese, is a major draw for international buyers and renters.
With 96% of people aged 15-64 speaking English, according to the National Statistics Office, communication is a breeze for newcomers. This ease of interaction makes navigating the local property market much simpler, enhancing the overall experience for international buyers and renters.
International companies are also setting up shop in Malta, adding to its allure. For instance, in 2024, Business Office Services chose to establish itself in Malta’s financial district, a sign of the growing trend of global businesses moving in. This influx of companies brings more expatriates and investors, which in turn boosts demand for rental properties and real estate.
Malta's appeal extends to education, with a rising demand for English-speaking schools. This trend is not just about education; it also highlights Malta's attractiveness for both tourists and long-term residents. Between 2023 and 2024, the tourism sector saw a notable increase, largely driven by the presence of these educational institutions.
The growth in tourism from English-speaking countries is a testament to Malta's charm as a destination. This influx of visitors not only boosts the tourism sector but also draws more investors and renters to the island.
In essence, Malta's bilingual nature, coupled with its strategic location and growing international business presence, makes it a hotspot for those looking to invest or settle. The combination of these factors creates a vibrant and appealing environment for international buyers and renters.
Sources: Latitude World, BOS International, Malta Tourism Authority
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12) Malta’s tax benefits for property owners boost your investment returns
Malta offers a favorable tax regime for property owners that significantly boosts investment returns.
One of the standout benefits is the absence of annual property taxes. Unlike many European countries where these taxes are the norm, Malta allows property owners to keep more of their rental income and capital gains. This is a big plus for anyone looking to invest in property here.
Another advantage is the favorable capital gains tax conditions. If you own and live in a property for at least three years, you won't pay income tax when you sell it. This can mean substantial savings for long-term owners, making Malta an attractive spot for maximizing returns.
For landlords, the option to tax rental income at a flat rate of 15% of the gross rental income is a game-changer. It simplifies the tax process, offering clarity and predictability, which is always a relief when dealing with finances.
Malta also has double taxation treaties with many countries, reducing tax liabilities for foreign investors. This makes it an appealing destination for international property investment, as it minimizes the tax burden.
Combine these tax perks with Malta's economic stability and rising property values, and you have a recipe for a favorable investment environment. It's no wonder property owners are drawn to Malta for enhancing their returns.
Sources: CSB Group, The Luxury Playbook, Chambers Practice Guides
13) Thanks to the country's renewable energy initiatives, properties are more sustainable
Malta is making strides in property sustainability thanks to its renewable energy initiatives.
With a boost in government investment, Malta is focusing on renewable energy projects to enhance property sustainability. Through the recovery and resilience plan, the government is offering grants to improve energy efficiency and cut carbon emissions by retrofitting buildings. This applies to both public and private sectors, making it easier for property owners to join the green movement.
In 2023, Malta saw a significant increase in solar panel installations, with an 8.3% rise in photovoltaic installations compared to the previous year. This surge is largely due to residential units, which make up a whopping 93.4% of all installations. These panels are not just for show; they generate 45% of the solar power on the islands, proving their vital role in renewable energy production.
Government incentives, like feed-in tariffs, have been a game-changer in promoting solar panel installations. While not always highlighted, these incentives have historically made renewable energy systems more attractive and affordable for property owners, encouraging more people to make the switch.
Sources: European Commission, Malta Today, Malta Today
14) Families are attracted to the area because of the country's education system and international schools
Families are increasingly drawn to Malta because of its excellent education system, including international schools.
In 2023, Malta saw a 21% jump in international student numbers at English language schools, with 78,567 students compared to 56,675 in 2022. This surge shows a growing trust in the quality of education Malta offers.
The National Education Strategy 2024-2030 is a big part of this appeal. It aims to improve education outcomes and prepare students for global challenges, showing a strong commitment to high-quality education.
This strategy also means investing in educational infrastructure, ensuring schools are well-equipped for students and families.
Partnerships with international educational institutions are part of the plan, enhancing the educational experience and attracting more international students and families.
Many international students, especially from Italy, Germany, and France, are moving to Malta for these educational opportunities, indicating that expatriate families are relocating for better education.
Sources: The PIE News, Eurydice
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.
15) Being part of the EU gives Malta a stable economic framework for property owners
Malta's EU membership offers property owners a stable economic framework.
In 2023, Malta's economy was booming with a 7.5% GDP growth, thanks to strong local demand and a bustling tourism scene. This positive trend carried into 2024, with the European Commission adjusting Malta's growth forecast to 5%, showing continued economic strength.
Malta's credit ratings are another reassuring factor for property buyers. Fitch rates Malta at A+, highlighting its eurozone membership and the benefits of a reserve currency. Other agencies like Morningstar DBRS and Scope also give Malta high marks, with ratings of A (high) and A+ with a Stable Outlook, respectively.
Being part of the EU means Malta offers enhanced legal protections for property owners. This creates a secure investment environment, which is a big plus for those seeking long-term stability in their property investments.
Malta's strategic spot in the Mediterranean and its reputation as a safe haven for investment within the EU draw in both local and international property investors. This influx helps maintain a stable property market, making Malta a hot spot for property investment.
With its EU ties, Malta provides a reliable backdrop for property ownership, ensuring that investors can count on a secure and thriving market for years to come.
Sources: Xinhua News, RIF Trust, MFSA, KPMG
16) You can rely on the island’s stable politics for a secure investment climate
Malta offers a secure investment climate thanks to its stable political environment.
One of the reasons investors feel confident is Malta's consistently high political stability index. Even with a slight dip in 2023, the country has maintained a strong track record over the years. This long-term stability is something investors can count on.
Being a member of the European Union is another big plus for Malta. This membership means Malta follows EU regulations, which provides a predictable legal framework for businesses. It also opens doors to economic integration with other EU countries, giving investors access to a larger market.
Malta is known for its peaceful political transitions, which adds to its appeal. This kind of stability is crucial for attracting and keeping investments, as it minimizes the risk of sudden political changes that could disrupt business operations.
For those considering property investment, Malta's political environment is a reassuring factor. The island's stable political climate ensures that your investment is less likely to be affected by unexpected political shifts.
Investors can feel confident knowing that Malta's political landscape is reliable and secure, making it an attractive option for property investment.
Sources: The Global Economy, European Parliament
17) Malta’s low crime rate makes it a great choice for families looking to settle down
Malta is known for its remarkably low crime rate, making it a top choice for families looking to settle down.
In 2023, Malta reported 16,855 crimes against a population of 542,051, showing a steady decline over the years. This means the crime rate dropped from 45 per 1000 people in 2004 to 31 in 2023, underscoring the islands' reputation for safety. The International Safety Index by Numbeo ranked Malta with a Crime Index of 42.5 and a Safety Index of 57.5, placing it among the safest countries in Europe.
Effective law enforcement plays a big role here. From 2018 to 2023, all homicides were solved quickly, contributing to a record low of 0.4 homicides per 100,000 people in 2022. This efficiency boosts public confidence in local law enforcement, enhancing the sense of security for both residents and tourists.
People feel safe in Malta, and it shows. The low incidence of violent and property crimes is reflected in national statistics. This sense of security is a big draw for families, who are increasingly looking for homes in Malta's safe neighborhoods.
The real estate market is responding to this demand, with more family homes popping up in these secure areas. Families are clearly attracted to Malta's safety and security, making it a popular choice for those looking to relocate.
Sources: CrimeMalta Observatory Annual Crime Review 2023, Numbeo Crime Index 2023, Moving to Malta with Kids
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18) Malta’s rich cultural heritage and historical sites make properties more appealing
Malta's rich cultural heritage and historical sites make its properties highly appealing.
In 2023, Heritage Malta saw a surge in museum and site visitors, highlighting a growing fascination with the island's cultural and historical attractions. This interest coincided with a record number of tourists flocking to Malta, many eager to explore these unique sites. The island's charm is undeniable, with its blend of history and culture drawing in both visitors and potential property buyers.
The real estate market has felt this cultural pull, with property prices climbing, especially near historical landmarks. Valletta, a UNESCO World Heritage Site, is a prime example where properties hold their value due to limited availability and high demand. The Central Bank of Malta noted an average property price increase of 8% in 2023, with hotspots like Sliema and Valletta experiencing even more significant spikes.
Areas rich in culture, such as the Three Cities, are becoming increasingly popular among history buffs and families seeking authenticity. The allure of Malta’s UNESCO World Heritage sites, including the City of Valletta and the Megalithic Temples, is undeniable. These sites not only attract tourists but also potential property buyers, enhancing the appeal of these areas.
For those considering a property purchase, understanding the island's cultural landscape is key. Properties near historical sites offer not just a home but a piece of Malta's vibrant history. This connection to the past is a significant draw for many buyers, adding a unique dimension to property ownership on the island.
Investing in Malta means more than just acquiring real estate; it's about embracing a lifestyle steeped in history and culture. The island's rich heritage continues to shape its property market, making it a compelling choice for those looking to invest in a place with a story to tell.
Sources: Heritage Malta, Property Market MT USA, Realux International, Realux International, Malta Business Weekly
19) The island’s diverse food scene and lifestyle perks make it a great place to live
Malta's culinary scene is a major draw for those considering living on the island, with an impressive array of Michelin-starred restaurants as of 2024.
Among these, ION Harbour stands out as Malta's first-ever Two MICHELIN Star restaurant, celebrated for its innovative cuisine. This achievement underscores the island's dedication to offering high-quality dining experiences that attract food lovers from around the world.
Malta's food scene is a delightful mix of Mediterranean and Middle Eastern flavors, featuring local favorites like lampuki and octopus stew. This variety is complemented by a range of international options, making it a culinary paradise for diverse tastes.
Beyond food, Malta's lifestyle amenities significantly enhance its living appeal. The island is seeing a rise in lifestyle and wellness centers, a trend driven by its growing tourism industry. These centers offer residents access to gyms, spas, and community spaces, contributing to a higher quality of life.
High-end residential complexes are also on the rise, providing luxurious living options that include modern amenities. This development is part of Malta's effort to cater to those seeking a comfortable and vibrant lifestyle on the island.
With its rich culinary offerings and expanding lifestyle amenities, Malta presents an attractive option for potential property buyers looking for a unique living experience.
Sources: Invoyage, Los Angeles Times, Michelin Guide
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.