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What will happen in Malta’s real estate market? Will prices go up or down? Is Valletta still a hotspot for foreign investors? How is Malta’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Malta, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Affordable housing prices will rise steadily as local demand remains high
Malta's property prices have been climbing steadily, catching the eye of potential buyers.
In the first half of 2023, the Residential Property Price Index (RPPI) showed an 8.3% increase in Q2 after a 10.51% rise in Q1. This isn't just numbers; it's a sign of a growing appetite for homes, especially affordable ones. Local real estate agents are buzzing about this trend, noting that affordable housing projects are in high demand.
Why the rush for affordable homes? Well, many Maltese are returning home, and there's a steady stream of newcomers. This mix is pushing the need for budget-friendly housing, and experts predict this demand will keep climbing into 2024.
Adding to the pressure, government data shows a shortage of affordable housing units, with over 1,600 people waiting for social housing as of late 2024. This shortage is a big reason why prices are on the rise.
Urban areas are seeing a population boom, thanks to migrant workers and returning locals. This growth, along with a bounce-back in tourism, is fueling the housing demand and nudging property prices upward.
Sources: Newsbook, JK Properties, Global Property Guide
2) Interest in eco-friendly developments will grow among foreign investors as sustainability gains importance
Foreign investors are showing increased interest in eco-friendly developments as sustainability becomes a priority.
In Malta, there's been a noticeable rise in eco-friendly property developments over the past couple of years. According to a report by Grant Thornton, buying an environmentally sustainable apartment can be financially rewarding, with 44% of the benefits realized within the first five years. This trend highlights the growing appeal of eco-friendly properties.
The Maltese government is actively supporting sustainable housing by offering incentives like 100% financing for green facades and retrofitting front gardens. This initiative attracted 90 submissions, totaling nearly €750,000, indicating strong demand among foreign buyers. Additionally, a €2 million grant scheme covers 100% of eligible works, underscoring the government's commitment to green infrastructure.
Consumer preferences are shifting towards environmentally friendly properties, as evidenced by the increasing number of eco-certifications for new developments. This trend is expected to grow, fueled by the media's focus on sustainability in real estate. The media has been instrumental in raising awareness about the benefits of eco-friendly developments, further boosting interest among foreign investors.
Foreign investors are particularly drawn to Malta's eco-friendly developments due to the financial incentives and government support. The combination of financial benefits and sustainable living options makes these properties highly attractive.
As sustainability becomes a priority, foreign investors are likely to continue showing interest in Malta's eco-friendly developments, driven by government incentives and consumer demand.
Sources: Grant Thornton's Report, Green Building Grant Scheme, Constructive Voices - Malta Top Green Buildings
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.
3) Rental yields in central Malta will remain stable as professionals continue to drive demand
Properties in central Malta are seeing stable rental yields thanks to a steady demand from professionals.
Malta's job market is thriving, with 96% of new graduates landing jobs in 2023, a figure that outshines the EU average. This robust employment scene is a magnet for professionals seeking opportunities.
Big names like TMF Group, which supports over 100 multinational companies, are setting up shop in Malta. These companies bring in a wave of expatriates and foreign professionals, boosting the demand for rental homes.
Central Malta's appeal is also due to its prime location near business hubs and essential amenities. This makes it a hotspot for professionals who want convenience and easy access to work.
Sources: Gross Rental Yields in Malta, Employment Rates in Malta, TMF Group Services
4) Rents in the southern region will rise as better infrastructure draws more residents
The southern region of Malta is buzzing with major infrastructure upgrades that are set to boost rental prices.
Thanks to €2 million in government investment, Infrastructure Malta is transforming Santa Lucija with new residential streets and enhancing the Ta' Garnaw Valley belvedere with walking and cycling tracks. These changes are not just about aesthetics; they’re designed to improve daily life and draw in new residents.
Public transport is also getting a facelift. The MODUS project is rolling out new bus priority lanes and extending existing ones, making commutes smoother and more reliable. With new Park and Ride facilities, like the one at Marsa, getting to commercial hubs is a breeze, making the area a hot spot for both living and business.
Real estate agents are noticing a shift. Areas like Fgura and Paola are seeing a surge in rental demand as infrastructure projects progress. This isn’t just a local phenomenon; history shows that when infrastructure improves, rental demand—and prices—tend to rise.
These developments are not just about convenience; they’re reshaping the region’s appeal. As more people flock to these upgraded areas, the rental market is heating up, reflecting a broader trend seen across Malta.
Sources: Times of Malta, Infrastructure Malta, Transport Malta
5) Demand for accessible and senior-friendly housing in Malta will grow as the population ages
Malta's population is getting older, and this shift is reshaping the housing market.
With life expectancy in Malta now at 83.21 years, people are living longer, which means there's a growing need for homes that are easy for seniors to navigate. Think about features like step-free access and grab bars that help older adults maintain their independence.
In 2023, 18.60% of Malta's population was aged 65 and over, and this number is only going up. As more people enter their senior years, the demand for age-friendly housing is becoming more urgent. This trend is pushing the development of communities designed with seniors in mind.
The senior housing market in Malta is booming, with a 40% increase in the absorption rate of accessible housing units in early 2024. This shows that more people are looking for homes that cater to an aging population. However, the demand for these properties is outpacing supply, indicating a gap that needs to be filled.
For those considering buying property in Malta, it's worth noting that the demand for senior-friendly homes is on the rise. This could be a smart investment opportunity, as the aging population continues to drive the need for accessible housing.
As Malta's demographics shift, the housing market is adapting to meet the needs of older adults. This means more options for senior-friendly living spaces, but also a competitive market for those looking to invest in this growing sector.
Sources: Eurostat Data, Macrotrends, Eurocarers, NIC MAP Vision
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6) Demand for rentals in expat-friendly neighborhoods will grow as more expats move in
The growing expatriate community in Malta is boosting demand for rental properties in international-friendly neighborhoods.
With around 94,800 third-country nationals living in Malta as of January 2023, they make up a significant 17.5% of the population. This influx naturally leads to a higher demand for housing options that cater to their needs, especially in areas that offer international schools and services.
Malta's economy is thriving, with a GDP growth rate of 5.4% in 2023, which is attracting more multinational companies to set up shop here. This economic boom is drawing in more expatriates, further driving the demand for rental properties.
Real estate market reports highlight a shift towards rental properties, largely due to the expatriate community's need for flexible living arrangements. The Property Price Index in Malta rose by 7.1% in 2023, with much of this growth linked to rental demand.
Real estate agents are noticing a surge in inquiries from expatriates, particularly in popular areas like Sliema and Valletta. These neighborhoods are known for their international appeal and amenities that cater to a global lifestyle.
As more expatriates settle in Malta, the demand for rental properties in these international-friendly areas is expected to continue rising, making it a promising market for potential property investors.
Sources: Franksalt.com.mt, Migrant Integration Malta
7) Luxury buyers will drive a niche market boom in Mdina as they seek unique, historic homes
Mdina is set to become a hotspot for luxury home buyers seeking unique, historic properties.
In Malta, the luxury property market is on the rise, with a 49% increase in sales and average prices soaring past €2 million in 2022. This isn't just a local trend; globally, buyers are becoming more selective and decisive about their property choices.
The Maltese government has rolled out programs to attract wealthy individuals, boosting demand for luxury homes, especially those with historical charm. Mdina, with its UNESCO World Heritage status, stands out as a top choice for affluent buyers due to its rich history and stunning architecture.
With more people working remotely, there's a shift towards homes that offer character and space for home offices. Mdina's historic homes fit the bill perfectly, offering a unique living experience. The town's international recognition only adds to its allure.
Social media is playing a big role too, with Mdina's lifestyle and architecture being showcased to a global audience. This exposure is drawing in potential buyers who are captivated by the town's unique charm.
Sources: Malta Sotheby's Realty, JK Properties, Mondaq
One of our partners sent us this video where Mdina's historic charm is highlighted, demonstrating its growing appeal as a niche luxury market for unique homes.
8) Demand for modern urban apartments in central areas will grow as more young professionals move in
Malta is buzzing with young professionals flocking to its shores, especially in tech and finance.
In 2023 and 2024, Malta's job market was thriving, with a youth employment rate of 82.90% for those aged 20-29. This vibrant job scene is a magnet for young talent eager for career growth.
These young professionals are drawn to the urban lifestyle, favoring lively city centers. In Malta, places like St. Julian's and Paceville are hotspots, known for their modern amenities and bustling nightlife.
The rise of co-working spaces in these areas is a game-changer. They offer the flexibility and modern facilities that young professionals crave, making city living even more appealing.
As a result, there's a growing demand for modern, urban apartments in these central locations, driven by the influx of young professionals.
Sources: Trading Economics, KPMG, Easy Offices
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.
9) Demand for homes near parks and recreational spaces will grow because wellness is becoming more popular
In 2023 and 2024, there's been a noticeable shift towards wellness-focused property developments.
People are increasingly drawn to homes that promote well-being, as highlighted by the Real Estate Survey 2024 by PwC. In Malta, for instance, there's a growing interest in eco-friendly properties. This shift is not just about aesthetics; it's about living in environments that support a healthier lifestyle.
Take Smart City Malta, for example. This development is all about energy efficiency and sustainable living. It boasts extensive parks and green spaces, perfect for families and individuals who love outdoor activities. Such developments are gaining popularity as more people seek homes that offer a healthier way of life.
The Global Wellness Institute has been emphasizing the benefits of living near green spaces. They point out that parks and natural areas can significantly enhance physical, social, and emotional well-being. This appreciation for nature's role in wellness is pushing the demand for properties that include these features.
In Malta, the trend is clear: people want homes that offer more than just a roof over their heads. They are looking for places that provide access to green spaces and recreational facilities. This is not just a passing fad; it's a growing focus on wellness that is shaping the real estate market.
As more people recognize the benefits of living in wellness-focused communities, the demand for such properties is expected to rise. This trend is particularly evident in developments like Smart City Malta, where the emphasis is on creating environments that support a healthier lifestyle.
Sources: PwC Real Estate Survey 2024, Smart City Malta, Global Wellness Institute
10) Virtual reality tours will be widely used for property viewings, especially by international buyers
Virtual reality tours are now a staple for property viewings, especially for international buyers.
Imagine you're an international buyer eyeing a property in Malta. Over half of buyers once refused to consider a house without a virtual tour, highlighting the growing importance of VR in real estate. This trend is particularly strong in Malta, where international buyers play a big role in the market.
In 2023, foreign buyers accounted for about 20% of property transactions in Malta. Malta's allure for international investors is fueled by attractive tax benefits and citizenship programs. For these buyers, VR tours are a game-changer, offering the ease of remote property viewing, a necessity that became even more pronounced during travel restrictions.
Malta's digital landscape is ready for this shift. With a high internet penetration rate of 92.4% in early 2024, the population is well-prepared to embrace digital tools like VR for property viewings. This tech-savvy environment, coupled with the rising demand for remote viewings, makes VR tours a no-brainer for international buyers.
Sources: PhotoUp, Frank Salt Real Estate, DataReportal
11) Tech-savvy buyers will be drawn to new developments featuring standard smart home technology
Smart home technology is becoming a big deal in Malta.
In the next few years, the market is expected to grow by 13.41%, reaching $11.3 million by 2029. This shows a strong interest in smart home solutions. People in Malta love the idea of smart homes because they offer convenience, energy efficiency, and connectivity.
About 70% of home buyers are on the lookout for homes with smart features. They appreciate the convenience, time savings, and extra security these technologies bring. This trend is pushing smart home features to the top of the list for many buyers.
Real estate listings in Malta are catching on, with more properties showcasing smart technology. The benefits are clear: smart lighting and appliances can be controlled remotely, making energy use more efficient, while smart locks and security cameras boost home safety.
As technology advances, smart home features are becoming more accessible and affordable. This includes cheaper smart appliances and easier integration into existing home systems. New developments with these modern conveniences are a magnet for tech-savvy buyers.
Sources: Statista, Statista, ESI Malta, Eufy, Exploding Topics
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12) The southern region of Malta will gain popularity as infrastructure improves and property prices remain low
The southern region of Malta is becoming a hotspot for property buyers due to improved infrastructure and lower property prices.
Infrastructure Malta has invested over €7 million to revamp ten roads in Zejtun, making the area more accessible and appealing for both residents and businesses. This includes enhancing main access routes and upgrading road surfaces and footpaths, which is a big draw for anyone considering a move.
Key roadworks like the reconstruction of Il-Hamsa u Ghoxrin ta’ Novembru Avenue and Il-Kbira Street have boosted the region's connectivity. While public transport upgrades aren't specified, the focus on infrastructure hints that improvements might soon follow, making the area even more attractive.
On the property side, the southern region offers more affordable real estate options. The average asking price per square meter for finished apartments is €2,123, which is a bargain compared to pricier areas like the North Harbour.
This affordability is drawing in buyers who are on the hunt for cost-effective housing solutions. It's a great opportunity for those looking to invest in a growing area without breaking the bank.
Sources: Infrastructure Malta, Business Now, IMIN Malta
13) Eco-friendly developments in central Malta will attract buyers who prioritize sustainability
The central region of Malta is becoming a hotspot for eco-friendly developments, thanks to government incentives and regulations.
Back in 2012, the Maltese government set the stage with the Sustainable Development Act, pushing for greener policies. This act was a game-changer, paving the way for initiatives that promote eco-friendly building practices.
Fast forward to today, and you'll notice a shift in what people want. A KPMG survey shows that more residents are eyeing sustainable living options when buying or renting. This trend is fueling the demand for energy-efficient homes, a cornerstone of sustainable living.
Why the buzz around eco-friendly properties? Well, it's not just about saving the planet. A Grant Thornton report points out that energy-efficient apartments can save you a lot of money over time. With green financing options available, more buyers are jumping on the sustainable bandwagon.
In Malta's central region, this shift is attracting environmentally conscious buyers who are keen on reducing their carbon footprint. The area is seeing a rise in developments that focus on sustainability, making it a prime spot for those who value eco-friendly living.
So, if you're thinking about buying property in Malta, keep an eye on the central region. It's not just about a home; it's about investing in a sustainable future.
Sources: Sustainable Development Report, Grant Thornton Report, KPMG Survey
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.