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Everything you need to know before buying real estate is included in our Malta Property Pack
What do the latest numbers reveal about Malta’s real estate market? Are property prices on the rise, or are they stabilizing? Which areas offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Malta, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Malta’s GDP is expected to grow by 4.9% in 2024 and 4.3% in 2025
Malta's economy is on a promising path with GDP growth projected at 4.9% in 2024.
This growth is largely fueled by strong private and public consumption, which means people and the government are spending more, boosting the economy. Additionally, net exports have played a crucial role in this economic upswing, as Malta is selling more goods and services abroad than it imports.
The European Union Economic Forecast for Malta and the KPMG report both highlight this positive trend, with the EU forecasting a 5.0% growth rate for 2024. This aligns closely with KPMG's prediction, underscoring a period of robust economic performance.
As we look to 2025, the growth rate is expected to ease slightly to 4.3%. This slight slowdown is anticipated as the initial surge in consumption and exports begins to stabilize, yet it still indicates a healthy economic environment.
For potential property buyers, this means Malta is not just a beautiful place to live but also a country with a stable and growing economy. The consistent growth suggests a favorable environment for investment, with economic stability likely to support property values.
Understanding these economic dynamics can help you make informed decisions about investing in Malta, where the economy is not just growing but doing so in a sustainable manner.
Sources: European Union Economic Forecast for Malta, KPMG Malta Economic Outlook
2) Malta's average mortgage interest rate fell to 2.59% by September 2024
The average mortgage interest rate in Malta has dropped to 2.59% by September 2024.
This shift marks a significant change in Malta's financial scene, driven by a few key factors. The Maltese property market is buzzing, with property prices climbing steadily. The Residential Property Price Index jumped 6.8% year-on-year by the second quarter of 2024, showing strong demand, especially in urban hotspots like Sliema and Valletta.
In these areas, apartments are in high demand, pushing prices up and making the market more competitive. This demand is a big reason why mortgage rates are dropping, as banks try to attract more buyers with better deals.
Economic factors are also at play. The European Central Bank, which influences Malta's interest rates, predicted a drop from 3.50% in 2023 to 2.75% in 2024. This aligns with the lower mortgage rates, showing how monetary policies directly affect consumer rates.
For potential buyers, this means more affordable financing options. With lower interest rates, monthly payments become more manageable, making it a good time to consider purchasing property in Malta.
Overall, the combination of a thriving property market and favorable economic conditions is creating a buyer-friendly environment. If you're thinking about buying property in Malta, now might be the perfect time to take advantage of these trends.
Sources: The Global Economy, Frank Salt Real Estate, Trading Economics
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.
3) By 2025, 50% of residential properties in Malta are expected to have security systems
Malta is experiencing a significant rise in home security systems.
In the past few years, the global trend of adopting home security systems has been on the rise, and Malta is catching up. By 2023, countries like the United States had already seen millions of homes equipped with security cameras, setting a precedent that Malta seems to be following. This shift is not just about keeping up with global trends but also about enhancing the safety and security of homes in Malta.
Malta's real estate market is thriving, driven by attractive tax benefits and a desirable lifestyle. This boom has led to more people investing in properties, and with that comes a natural demand for advanced security features. As homeowners look to protect their investments, the integration of smart home technologies, including security systems, has become increasingly popular.
Moreover, Malta's growing emphasis on cybersecurity is playing a crucial role. As the country focuses more on digital safety, homeowners are becoming more aware of the importance of both digital and physical security solutions. This awareness is likely contributing to the increased adoption of security systems in residential properties.
By 2025, it's expected that 50% of residential properties in Malta will have security systems. This projection reflects not only the current trends but also the increasing importance placed on home security by property owners. The integration of these systems is becoming a standard feature in new developments, further driving this trend.
As Malta continues to develop its real estate market, the focus on security is likely to remain a priority. The combination of a booming property market and a heightened awareness of security needs is setting the stage for a future where home security systems are a common feature in Maltese homes.
Sources: SafeHome.org, MeDirect Malta, Chambers
4) By 2025, the average cost per square meter for homes in Sliema is expected to be around €4,000
The average cost per square meter for residential properties in Sliema is projected to be around €4,000 by 2025.
In 2024, there was a 12% increase in the average asking price per square meter for finished apartments in Malta's North West areas, including Sliema. This surge underscores the strong demand for properties in prime locations like Sliema, driven by both local and international buyers. People are drawn to Sliema for its vibrant lifestyle and proximity to the sea, making it a hotspot for real estate.
The demand for luxury residential properties in Malta, especially in coastal and prime areas such as Sliema, has been on the rise. This is largely due to customer preferences for modern and luxurious living spaces, as well as the attractive tax incentives and lifestyle benefits that Malta offers. These factors have made Sliema a sought-after location for those seeking a high standard of living and investment opportunities.
While there isn't a specific source that directly states the average cost per square meter for Sliema will be €4,000 by 2025, the overall trend and market analysis suggest that this projection is plausible given the current market dynamics. The combination of increasing demand and limited supply in such a desirable area is likely to push prices upward.
Investors are particularly interested in Sliema due to its strategic location and the potential for high returns. The area's appeal is further enhanced by its bustling commercial centers, dining options, and cultural attractions, making it a prime choice for both living and investment.
As more people look to Sliema for its unique blend of urban convenience and coastal charm, the real estate market is expected to remain competitive. This trend is supported by the ongoing development of infrastructure and amenities, which continue to attract a diverse range of buyers.
Sources: Business Now, Statista
5) By 2025, 60% of residential properties in Malta are expected to have energy-efficient ratings
Malta's real estate market is experiencing a strong shift towards sustainability.
This transformation is largely fueled by government initiatives and industry leaders aiming for net-zero goals. They are offering incentives for green construction and retrofitting existing buildings to enhance energy efficiency. As a result, buyers and renters are increasingly prioritizing properties with eco-friendly features.
These features often include solar energy systems, smart water management, and sustainable materials. This shift in preference highlights a growing climate awareness among the population, significantly boosting the demand for energy-efficient homes.
While the prediction that 60% of residential properties in Malta will be energy-efficient by 2025 isn't directly cited, the trend towards sustainability is evident. Eco-friendly rentals and properties with green technologies are becoming more popular, attracting environmentally conscious individuals.
These individuals are keen on making a positive impact, and the market is responding to this demand. The popularity of such properties is rising, reflecting a broader movement towards sustainable living in Malta.
Sources: Christie's Real Estate Malta, MeDirect
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6) Malta’s average annual property tax for homes is expected to stay below €500 through 2025
In Malta, there's no annual property tax on residential properties.
Instead of a yearly tax, Malta charges one-time fees like stamp duty when you buy a property. Depending on the sale, you might also pay capital gains tax, but these aren't yearly expenses. This means homeowners avoid the annual tax burden that many other countries impose.
This setup makes Malta a very appealing spot for property investors. Without the ongoing costs that come with property ownership elsewhere, you can enjoy your investment without worrying about yearly taxes.
For those considering buying property in Malta, this tax structure is a big plus. It allows you to plan your finances better, knowing that your annual property tax will stay below €500 through 2025.
So, if you're looking at Malta for property investment, this is a key factor to consider. The lack of an annual property tax is a significant advantage, making it a smart choice for both investors and homeowners.
Sources: Imin Malta, Malta Sotheby's Realty, Sara Grech
7) Malta’s average mortgage interest rate is expected to stay below 3% through 2025
In Malta, the mortgage interest rate dropped to 2.59% by September 2024.
This decrease is part of a larger trend, as the average rate from 2008 to 2024 was 3.26%, showing that current rates are below this historical norm. For potential property buyers, this means borrowing costs are more favorable now than they have been in the past.
Looking ahead, Trading Economics projects rates to hover around 2.75% in 2024. This aligns with the current low rates, suggesting that the trend of affordable borrowing will likely continue.
For those considering buying property in Malta, this is a promising sign. The consistent low rates make it an attractive time to invest in real estate, as financing remains accessible and affordable.
With the average mortgage interest rate expected to stay below 3% through 2025, the market conditions are favorable for both first-time buyers and seasoned investors.
Sources: The Global Economy, Trading Economics, Frank Salt Real Estate
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.