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
This article breaks down the current state of the Malta real estate market in 2026, covering housing prices, neighborhood trends, rental demand, and what foreign buyers need to know.
We constantly update this blog post to make sure you always get the freshest data and most relevant insights about buying property in Malta.
Whether you're looking at a seafront apartment in Sliema or a townhouse in the Three Cities, this guide will help you understand what's really happening on the ground.
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.
How's the real estate market going in Malta in 2026?
What's the average days-on-market in Malta in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Malta is around 60 days from listing to accepted offer, though the full transaction from listing to final deed typically takes about 150 days due to Malta's unique Promise of Sale (konvenju) process.
The realistic range of days-on-market that covers most typical listings in Malta spans from about 35 days for well-priced apartments in high-demand areas like Sliema or St Julian's, up to 95 days or more for niche properties, overpriced listings, or homes in less popular locations.
Compared to one or two years ago, days-on-market in Malta has remained relatively stable because demand continues to absorb supply, with transaction volumes rising about 4.6% year-on-year through the first three quarters of 2025, keeping absorption rates healthy.
Are properties selling above or below asking in Malta in 2026?
As of early 2026, the estimated average sale-to-asking price ratio for residential properties in Malta is around 93% to 97%, meaning most homes sell about 3% to 7% below the original asking price.
In Malta, roughly 10% to 20% of properties sell at or above asking price, mostly in scarce segments like renovated townhouses in Valletta or prime seafront apartments in Sliema, while the majority of standard apartments and maisonettes see buyers negotiate discounts of 5% or more. We are moderately confident in this estimate because Malta's official RPPI uses transaction prices, while the Central Bank's index tracks advertised prices, revealing a consistent gap between the two.
The property types and neighborhoods in Malta most likely to see bidding wars and above-asking sales include turnkey penthouses in St Julian's, character homes in the Three Cities (Birgu, Bormla, Isla), and seafront units in Sliema or Tigné Point, where supply is genuinely limited and buyer competition is strongest.
By the way, you will find much more detailed data in our property pack covering the real estate market in Malta.
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.
What kinds of residential properties can I realistically buy in Malta?
What property types dominate in Malta right now?
In Malta in 2026, the estimated breakdown of the most common residential property types available for sale is roughly 54% apartments, followed by maisonettes (about 15% to 20%), penthouses, terraced houses, townhouses, and villas making up the remainder.
Apartments represent the largest share of the Malta property market by a significant margin, accounting for more than half of all listings and around 86% of new building permits issued in recent years.
Apartments became so prevalent in Malta because the island has very limited land, extremely high population density (over 1,700 people per square kilometer), and strict planning constraints that push developers toward vertical construction rather than sprawling single-family homes.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Malta right now?
The estimated share of new-build properties among all residential listings in Malta is significant, with building permits surging 110% year-on-year in Q3 2025 to 3,668 units, though availability varies widely by area and quality level.
As of early 2026, the neighborhoods and districts in Malta with the highest concentration of new-build developments include the Northern Harbour (Gżira, Sliema spillover, San Ġwann), parts of the Central region (Birkirkara, Qormi), and St Paul's Bay in the north, while premium new builds with parking, good soundproofing, and quality finishes remain scarcer and more concentrated in projects like Tigné Point or Portomaso.
Get fresh and reliable information about the market in Malta
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Which neighborhoods are improving fastest in Malta in 2026?
Which areas in Malta are gentrifying in 2026?
As of early 2026, the top neighborhoods in Malta currently showing the clearest signs of gentrification include Ħamrun (close to Valletta with rising renovation activity), Floriana (adjacent to the capital with limited stock and lifestyle appeal), and the Three Cities of Bormla (Cospicua), Birgu (Vittoriosa), and Isla (Senglea), plus Kalkara on the harbour side.
The visible changes indicating gentrification in these Malta areas include the conversion of old townhouses into boutique accommodations, the opening of specialty coffee shops and wine bars in Birgu's waterfront, new art galleries and co-working spaces in Valletta-adjacent Floriana, and an influx of younger professionals and expats renovating properties in Ħamrun that were previously overlooked.
The estimated price appreciation in these gentrifying Malta neighborhoods over the past two to three years ranges from about 15% to 30%, with the Three Cities and Floriana seeing some of the strongest gains as heritage appeal and harbour proximity create genuine scarcity.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Malta.
Where are infrastructure projects boosting demand in Malta in 2026?
As of early 2026, the top areas in Malta where major infrastructure projects are currently boosting housing demand include Msida and its neighbors (Gżira, Ta' Xbiex, Pietà), the central belt around Birkirkara, Balzan, and Attard, and harbour-side localities benefiting from improved ferry connectivity.
The specific infrastructure projects driving that demand in Malta include the Msida Creek Project (a major urban regeneration improving traffic flow and public space), the Central Link arterial road upgrades reducing commute times through the central corridor, and the expanded Valletta Ferry service connecting Sliema, Valletta, and Cospicua by water.
The estimated timeline for completion of these major Malta infrastructure projects varies: the Msida Creek Project is ongoing with phased delivery expected through 2026 and 2027, while the Central Link improvements have largely been completed with some finishing works continuing.
The typical price impact on nearby properties in Malta once such infrastructure projects are announced versus completed tends to be a 5% to 10% premium at announcement (when speculation builds), followed by a further 5% to 15% gain once the project is operational and commuting benefits become tangible.
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.
What do locals and insiders say the market feels like in Malta?
Do people think homes are overpriced in Malta in 2026?
As of early 2026, the estimated general sentiment among locals and market insiders in Malta is that homes are expensive and feel overpriced relative to local wages, but many also acknowledge that strong demand from expats, foreign buyers, and investors keeps prices supported.
The specific evidence or metrics locals in Malta typically cite when arguing homes are overpriced include the price-to-income ratio (which has stretched significantly over the past decade), the fact that average apartment prices now exceed €370,000, and the reality that many young Maltese struggle to afford a first home without family help.
The counterarguments commonly given by those who believe Malta property prices are fair include the extreme scarcity of land (Malta is one of the world's most densely populated countries), persistent migration-driven demand, low unemployment around 2.8%, and mortgage rates that remain relatively affordable at about 2.5% to 3%.
Malta's price-to-income ratio is estimated to be higher than the EU average, with KPMG noting affordability pressures have grown as price growth has outpaced wage increases, putting Malta among the less affordable small European markets for local buyers.
What are common buyer mistakes people regret in Malta right now?
The most frequently cited buyer mistake that people regret making in Malta is treating the asking price as the final price, when in reality most Malta properties sell 5% to 15% below asking, and buyers who pay full price without negotiating often leave money on the table.
The second most common buyer mistake in Malta is underestimating the konvenju-to-deed timeline and tying up funds for 3 to 6 months longer than expected, especially when bank loan processing, permit checks, or common-parts documentation causes delays that surprise buyers unfamiliar with Malta's transaction structure.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Malta.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Malta.
Get the full checklist for your due diligence in Malta
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How easy is it for foreigners to buy in Malta in 2026?
Do foreigners face extra challenges in Malta right now?
The estimated overall difficulty level foreigners face when buying property in Malta compared to local buyers is moderate to high, mainly due to legal restrictions rather than social barriers, with non-residents typically allowed to purchase only one property unless buying in Special Designated Areas.
The specific legal restrictions that apply to foreign buyers in Malta include the requirement to obtain an AIP (Acquisition of Immovable Property) permit for most purchases, a limit of one property per non-resident buyer outside designated zones, and a rule that AIP-acquired properties cannot be rented out and must be used for residential purposes only.
The practical challenges foreigners most commonly encounter in Malta include navigating the konvenju process remotely, understanding that notaries (not lawyers) handle conveyancing, dealing with documentation that may be in Maltese, and discovering that many attractive older properties have unresolved permit or common-parts issues that require local expertise to uncover.
We will tell you more in our blog article about foreigner property ownership in Malta.
Do banks lend to foreigners in Malta in 2026?
As of early 2026, the estimated availability of mortgage financing for foreign buyers in Malta is generally accessible but more conservative than for locals, with most major banks like HSBC Malta and Bank of Valletta willing to lend to non-residents who meet stricter underwriting criteria.
The typical loan-to-value ratios foreign buyers can expect in Malta range from 60% to 70%, meaning you should plan for a 30% to 40% down payment, while interest rates remain relatively attractive at around 2.5% to 3.5% depending on the bank and your profile.
The documentation and income requirements Malta banks typically demand from foreign applicants include proof of income (employment contracts, tax returns, or audited accounts for self-employed), source of funds verification for anti-money laundering compliance, a valid passport, and often a local Malta address or contact, with processing times generally longer than for Maltese residents.
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.
How risky is buying in Malta compared to other nearby markets?
Is Malta more volatile than nearby places in 2026?
As of early 2026, the estimated price volatility of Malta compared to nearby markets like Cyprus, Sicily, or mainland Southern European countries is generally lower, with Malta showing steadier year-on-year appreciation (around 5% to 7% annually) rather than dramatic boom-bust swings.
Over the past decade, Malta experienced historical price swings that were relatively contained: prices dipped about 2.4% in 2020 during the pandemic but recovered quickly with gains of 7% in 2021 and 2023, which is milder than the sharper corrections seen in markets like Spain or Greece during the 2008 to 2012 crisis.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Malta.
Is Malta resilient during downturns historically?
The estimated historical resilience of Malta property values during past economic downturns is relatively strong, with the market typically experiencing slowdowns and soft corrections rather than severe crashes, supported by conservative bank lending and low household debt levels.
During the most recent major downturn (the 2020 pandemic shock), Malta property prices dropped about 2.4% that year but recovered fully within 12 months, with 2021 seeing a 7% rebound, a faster recovery than many comparable European markets.
The property types and neighborhoods in Malta that have historically held value best during downturns include prime seafront apartments in Sliema and St Julian's, heritage townhouses in Valletta and the Three Cities, and properties in Special Designated Areas like Portomaso and Tigné Point, where scarcity and international buyer interest provide a floor.
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How strong is rental demand behind the scenes in Malta in 2026?
Is long-term rental demand growing in Malta in 2026?
As of early 2026, the estimated growth trend for long-term rental demand in Malta remains strong, driven by continued migration inflows (net migration added over 10,600 people in 2024 alone) and a foreign population that now makes up nearly 30% of residents.
The tenant demographics driving long-term rental demand in Malta include young foreign workers in gaming, financial services, and tech (median age of foreign residents is just 32), expat professionals relocating with families, and students attending Malta's universities and language schools.
The neighborhoods in Malta with the strongest long-term rental demand right now include Sliema, Gżira, St Julian's, Msida, San Ġwann, and parts of Birkirkara, all of which offer proximity to employment hubs, good public transport links, and urban amenities that foreign workers prioritize.
You might want to check our latest analysis about rental yields in Malta.
Is short-term rental demand growing in Malta in 2026?
The regulatory changes currently affecting short-term rental operations in Malta include a requirement to register with the Malta Tourism Authority and obtain a Holiday Premises Licence, proposed new rules that would require condominium majority approval for apartment short lets (renewed every three years), and ongoing national debate about whether to further restrict STRs in residential areas.
As of early 2026, the estimated growth trend for short-term rental demand in Malta remains positive, supported by record tourist arrivals exceeding 3.5 million in 2024 and strong visitor spending, though regulatory uncertainty creates some caution among new STR investors.
The current estimated average occupancy rate for short-term rentals in Malta's prime tourist areas like Valletta and Sliema is around 65% to 75% annually, with higher peaks during summer and major events, according to STR analytics platforms.
The guest demographics driving short-term rental demand in Malta include European leisure tourists (especially from the UK, Italy, Germany, and France), business travelers attending gaming and fintech conferences, and a growing segment of digital nomads attracted by Malta's lifestyle and connectivity.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Malta.
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 are the realistic short-term and long-term projections for Malta in 2026?
What's the 12-month outlook for demand in Malta in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in Malta is solid but more price-sensitive, with buyers negotiating harder while well-located, turnkey homes continue to sell relatively quickly.
The key economic and political factors most likely to influence demand in Malta over the next 12 months include ECB interest rate decisions (which affect mortgage affordability), the implementation of Malta's new Labour Migration Policy (which could moderate foreign worker inflows), and any further tightening of short-term rental regulations that might shift investor behavior.
The forecasted price movement for Malta over the next 12 months is an increase of about 4% to 7% in nominal terms, continuing the recent trend, though a flat to slightly negative outcome (0% to minus 3%) is possible if interest rates rise unexpectedly or external shocks hit Malta's services economy.
By the way, we also have an update regarding price forecasts in Malta.
What's the 3 to 5 year outlook for housing in Malta in 2026?
As of early 2026, the estimated 3 to 5 year outlook for housing prices and demand in Malta points to continued appreciation in prime and well-connected areas, while generic apartment stock in oversupplied zones will compete increasingly on price and quality.
The major development projects and urban plans expected to shape Malta over the next 3 to 5 years include the completion of the Msida Creek regeneration, continued Central Link improvements, potential new ferry routes, and ongoing discussions about a Malta-Gozo tunnel that could dramatically reshape Gozo's property market if it proceeds.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Malta is a significant external shock to the island's services-export economy (gaming, financial services, tourism), which would reduce employment, slow migration, and weaken both rental and purchase demand.
Are demographics or other trends pushing prices up in Malta in 2026?
As of early 2026, the estimated impact of demographic trends on housing prices in Malta is strongly upward, as the island's population reached 574,250 at end-2024 with nearly all growth coming from migration, creating sustained demand for housing from a younger, working-age foreign population.
The specific demographic shifts most affecting Malta property prices include net migration of over 10,000 people annually (with non-EU citizens making up 77% of arrivals), a foreign population that now accounts for nearly 30% of total residents, and concentration of migrants in specific areas like St Paul's Bay (now 63% foreign) and Sliema.
The non-demographic trends also pushing prices in Malta include the growth of remote work attracting digital nomads who want a Mediterranean base with English as an official language, continued investor appetite for buy-to-let properties given strong rental yields, and lifestyle migration from Northern Europeans seeking year-round sun and EU residency.
These demographic and trend-driven price pressures are expected to continue in Malta for at least the next 5 to 10 years, as long as the economy remains strong, migration policy allows continued inflows, and Malta retains its appeal as an English-speaking EU hub with favorable tax treatment for certain residents.
What scenario would cause a downturn in Malta in 2026?
As of early 2026, the estimated most likely scenario that could trigger a housing downturn in Malta is a combination of materially tighter credit conditions (banks pulling back on lending), a sharp external shock to the gaming, financial services, or tourism sectors, and rising affordability stress that finally forces buyers to the sidelines.
The early warning signs that would indicate such a downturn is beginning in Malta include a sustained drop in transaction volumes (below the 12,000 annual deeds seen in recent years), a visible rise in days-on-market beyond 100 days on average, increasing gap between asking and achieved prices, and a spike in rental vacancy rates in areas dependent on foreign workers.
Based on historical patterns, a potential downturn in Malta could realistically see price declines of 5% to 15% over 1 to 2 years in the worst case, similar to the 2020 pandemic dip but potentially deeper if multiple shocks hit simultaneously, though Malta's conservative banking sector and land scarcity tend to limit severe crashes.
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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 (NSO Malta) | It's Malta's official statistics agency publishing the country's transaction-based residential price index. | We use it to anchor what prices are actually doing using official methodology. We treat it as the baseline for market momentum and volatility. |
| Eurostat Housing Price Statistics | Eurostat is the EU's official statistics office and it standardizes housing indicators across countries. | We use it to compare Malta to nearby EU markets on a like-for-like basis. We also use it to check Malta's pace versus EU-wide cycles. |
| Central Bank of Malta Financial Stability Report 2024 | It's the central bank's deep analysis of systemic risks, including housing, credit, and borrower vulnerability. | We use it to understand downside risks from rates, credit tightening, and affordability stress. We also use it to frame what could cause a downturn. |
| IMF Malta 2024 Article IV Consultation | The IMF is a top-tier international institution that assesses macro risks and structural pressures. | We use it to ground the medium-term outlook covering growth, migration, and external risks. We also use it to stress-test housing assumptions against macro scenarios. |
| KPMG-MDA Construction Industry and Property Market Report 2025 | It's a major consultancy report with a transparent, structured market dataset and detailed discussion. | We use it to describe what's unique about Malta including property types, regional splits, and asking-price dynamics. We also use it for on-the-ground market color alongside official stats. |
| PwC Malta Residential Real Estate Survey 2025 | PwC is a major global consultancy, and this is a structured survey of Maltese residents. | We use it to capture sentiment and buyer behavior that official price indices can't show. We also use it to identify common preferences and frictions. |
| Malta Tax & Customs Administration (MTCA) | It's the official government guidance on non-resident purchasing rules and constraints. | We use it to explain what foreigners can and cannot do, including the one-property rule and Special Designated Areas. We also use it to highlight real friction points in the buying process. |
| Infrastructure Malta | It's the official agency responsible for major road and public infrastructure delivery in Malta. | We use it to identify where infrastructure can shift demand between localities. We also use it to avoid vague "up-and-coming" claims without real projects behind them. |
| NSO Malta Inbound Tourism Statistics | It's an official release with hard numbers on tourists, nights, and spending. | We use it to quantify the demand supporting short-term rentals. We also use it to keep STR discussion grounded in real travel volumes. |
| European Commission 2025 Country Report on Malta | It's an EU institution's formal assessment of Malta's economy and policy challenges. | We use it to triangulate housing affordability and structural constraints. We also use it to spot policy directions that could affect housing demand and supply. |
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