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12 hottest real estate areas in Malta in 2025

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Authored by the expert who managed and guided the team behind the Malta Property Pack

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Where are the best places to invest in Malta right now? Is Valletta still the top pick, or are areas like Sliema, St. Julian's, and Gozo gaining ground? What makes these locations attractive to both local and foreign investors?

We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the island. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.

Our goal is to highlight the hottest markets in Malta and explain why they’re worth your attention in 2025.

If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.

How this content was created 🔎📝

At Investropa, we study the Maltese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Valletta, Sliema, and St. Julian's. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

We built our first area analyses on the insights from these conversations and our observations. But it was not enough. To strengthen our findings, we also consulted well-established sources like Global Property Guide, European Commission, and the National Statistics Office of Malta (just to name a few).

We only include the best areas to buy or the hottest real estate markets backed by credible sources, solid context, and clear data.

If we can’t find enough supporting information or context, we leave it out. There’s no point in recommending areas based on vague opinions or unverified trends. Our goal is to provide you with a reliable and well-researched guide to the most promising real estate markets—not just a random list of places.

Every source and citation is clearly listed because we believe in transparency and want to give you the tools to explore further if needed (and you should!).

We also use a bit of AI during the writing process to ensure our explanations are clear, accurate, and free of grammar or syntax mistakes. This way, you get content that’s both professional and easy to read.

When reading this content, you'll see that our team designed custom infographics to summarize and visualize key trends, making it clear why these markets stand out. We hope you’ll find them helpful! All other visuals were crafted in-house to ensure quality and clarity.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Sliema is thriving with high rental yields from expatriate and tourist demand

Sliema's real estate market is booming, thanks to high rental yields fueled by demand from expatriates and tourists.

In 2023, the average rental price for a two-bedroom apartment in Sliema increased by 6.8%, outpacing other regions in Malta. This surge is largely due to expatriates flocking to Malta for its growing industries, which has led to high occupancy rates in Sliema.

By December 2023, a remarkable 84.8% of tourists opted for rented accommodations, showing a clear preference for Sliema's offerings. This trend highlights the area's appeal to both short-term visitors and long-term residents.

Platforms like Airbnb have seen a notable increase in short-term rental listings in Sliema, driven by the influx of tourists and expatriates. The area's charm and convenience make it a top choice for those visiting Malta.

Sliema's popularity as a tourist destination is undeniable, with many visitors choosing to stay in the area. This has further boosted the demand for rental properties, making it a lucrative market for investors.

Sources: Frank Salt Real Estate, Business Now

2) St. Julian’s is popular with investors for its rising property values and lively nightlife and entertainment scene

St. Julian's is a magnet for investors, thanks to its exciting nightlife and entertainment scene.

In 2023, the area saw a notable increase in property values, with the average rental price for a two-bedroom apartment rising by 6.8% and apartment prices jumping by 9.3% year-over-year. This surge is largely due to the high demand for rentals, as the area is a favorite among tourists and expatriates.

Foreign buyers are particularly interested, making up about 20% of property transactions in Malta in 2023. This international interest is a testament to the area's appeal, with the total number of property transactions in Malta increasing by 3.5% that year.

St. Julian's is not just about properties; it's also about lifestyle. The local infrastructure and amenities are seeing increased investment, enhancing the area's attractiveness. The hospitality and entertainment sectors are booming, drawing in more visitors and residents.

Government initiatives are playing a crucial role in this growth, as they actively promote tourism and entertainment in the region. This support helps maintain the area's lively atmosphere, which is a key factor in its property market success.

With its bustling nightlife and strategic investments, St. Julian's continues to be a top choice for those looking to invest in property with strong appreciation potential.

Sources: Frank Salt Real Estate, Global Property Guide, The Malta Independent

statistics infographics real estate market 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.

3) Msida is in demand for rentals near the university, perfect for students and professionals

Msida is a hotspot for students and young professionals, thanks to its close proximity to the University of Malta.

With over 12,400 students enrolled for the 2023-2024 academic year, including a vibrant mix of 1,800 international students from 125 countries, the area is buzzing with youthful energy. This influx of students has naturally led to a surge in demand for rental properties nearby, as many prefer to live close to their campus for convenience.

Adding to the appeal, Msida is strategically located near major business hubs like Sliema and Valletta. This makes it a prime spot for young professionals who need to commute easily to work. The presence of coworking spaces such as SOHO The Strand and Glashaus caters specifically to their needs, further boosting the demand for rentals.

For those looking to invest in property, Msida offers a unique opportunity. The area’s popularity among students and professionals means that rental properties are in high demand, providing a steady stream of potential tenants. This makes it an attractive option for anyone considering a real estate investment in Malta.

Moreover, the vibrant community and bustling atmosphere make Msida not just a place to live, but a place to thrive. The combination of educational and professional opportunities creates a dynamic environment that is hard to resist.

Whether you're a student seeking convenience or a professional looking for a strategic location, Msida has something to offer. Its blend of academic and business opportunities makes it a compelling choice for anyone looking to rent or invest in property.

Sources: University of Malta News, Statista, Career Gappers

4) Swieqi is favored for its suburban feel and proximity to international schools, boosting demand from families and professionals

Swieqi is a top pick for families and professionals because of its suburban vibe and closeness to international schools.

Schools like St. George's Bay International School and St. Martin's College are in Swieqi, making it a hotspot for families who want quality education options nearby. The high enrollment numbers at these schools show just how much families are drawn to the area.

Property prices in Swieqi have been climbing, a sign of its growing popularity. Even with a brief dip in demand, Swieqi remains a highly sought-after location, according to a Global Property Guide report. This trend underscores the area's appeal to both families and professionals.

Swieqi's demographic data reveals a significant presence of families and professionals, highlighting its attractiveness. The town offers a balanced lifestyle with a moderate cost of living, making it a great choice for those seeking a high quality of life.

Dining and grocery prices in Swieqi are relatively affordable, adding to its charm for individuals and families. This affordability, combined with its suburban feel, makes Swieqi an ideal place for those wanting a balanced lifestyle.

Swieqi's proximity to international schools and its suburban atmosphere continue to boost property demand, making it a favored spot for families and professionals alike.

Sources: Global Property Guide, Cost of Living Guide for Swieqi, TenantCloud

5) Valletta is in demand for its historic charm and limited space, driving strong property appreciation potential

Valletta's historic charm and limited space create a high demand for properties, leading to significant appreciation potential.

With its UNESCO World Heritage status, Valletta is a city where new developments are restricted, making existing properties highly desirable. This scarcity naturally pushes property prices up, with an expected increase of 3% to 7% in 2025.

Valletta's cultural allure and strategic location make it a magnet for tourists and expatriates, boosting demand for short-term rentals. This demand, in turn, contributes to the rising property values. The Maltese government sweetens the deal by offering incentives for restoring historic properties, encouraging more investment in Valletta's real estate.

Foreign investors are also drawn to Valletta, captivated by its unique mix of history and modern amenities. This international interest further drives up demand and prices, with properties in Valletta often offering a higher return on investment compared to other areas in Malta.

Valletta's status as a UNESCO World Heritage site and vibrant cultural hub is frequently highlighted in the media, underscoring its appeal. This ongoing coverage emphasizes the city's cultural and historical significance, making it even more attractive to potential buyers.

In Valletta, the combination of limited space, historical charm, and strategic incentives creates a perfect storm for property appreciation, making it a prime spot for real estate investment.

Sources: Independent Malta, IMIN Malta, Newsbook Malta

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6) Naxxar is gaining popularity for its mix of modern amenities and traditional village charm, attracting long-term residents

Naxxar is becoming a hot spot for those seeking a mix of modern living and traditional charm.

In recent years, property prices in Naxxar have surged, with the average asking price per square meter for finished apartments jumping from €1,500 in 2017 to €2,535 in 2024. This increase outpaces the national average, highlighting a growing interest in the area. The trend is part of a broader rise in property values across Central Malta, which includes Naxxar, indicating that more people are drawn to its unique blend of old and new.

New developments and infrastructure projects are on the horizon, promising to boost Naxxar's modern amenities. This makes the town even more appealing to potential residents who appreciate both convenience and cultural heritage. The area is not just about new buildings; it's about enhancing the quality of life with better facilities and services.

Expatriates are increasingly choosing Naxxar as their home, contributing to its growing popularity. In nearby St Paul’s Bay, over half of the residents are foreign citizens, showing a trend that is spilling over into Naxxar. This influx of international residents is drawn by the town's balance of cultural heritage and modern conveniences.

Long-term rental agreements are on the rise, with 92% of contracts being long-term leases as of June 2023. This suggests that people are not just passing through; they are settling down, attracted by the stable and desirable environment Naxxar offers. The town's appeal is not just for short stays but for those looking to make it their home.

Sources: Business Now, Wikipedia, Times of Malta

7) Gzira is appealing to first-time buyers with its affordable property prices compared to nearby areas

Gzira is catching the eye for its affordable property prices, especially for first-time buyers.

In 2023 and 2024, the average asking price for finished apartments in Gzira was €3,172 per square meter, which is lower than in nearby Sliema and St. Julian's. This makes Gzira a more budget-friendly option for those looking to buy their first home. The town's strategic location and diverse community add to its appeal, making it a smart choice for young professionals and students.

Gzira's ongoing regeneration, including the development of Manoel Island, is transforming it into a vibrant residential area. This has led to a rise in modern apartments and penthouses, which are expected to increase in value as the town continues to develop. The influx of younger residents is a testament to Gzira's growing popularity.

Local real estate agents have noticed a surge in interest from first-time buyers. Gzira's affordability, along with its proximity to the university and shopping centers, makes it an ideal spot for young professionals and students. The town offers a unique blend of convenience and community, which is hard to find elsewhere.

Rental yields in Gzira are more affordable compared to other areas in Malta, making it an attractive option for rental investment. This affordability, combined with the town's charm, is drawing in more investors looking for a good return on their investment. Gzira's potential for growth is a key factor for those considering property investment.

With its competitive pricing and strategic location, Gzira is becoming a hotspot for those entering the property market. The town's ongoing development and youthful vibe make it a promising place to invest in property. As Gzira continues to evolve, its appeal is only expected to grow.

Sources: Business Now, Malta Sotheby's Realty, Global Property Guide

8) Zebbug is gaining interest for its traditional Maltese homes and renovation potential

Zebbug is turning heads with its charming traditional Maltese houses.

In 2023, there was a noticeable uptick in property sales, especially for these unique homes, as noted by the Malta Property Association. This trend indicates that both locals and foreigners are increasingly drawn to Zebbug's authentic charm. The allure of these properties lies in their ability to offer a genuine Maltese living experience, coupled with the exciting potential for renovation.

Real estate experts, like those at Knight Frank, have predicted that this demand will continue to rise. Many homeowners are taking advantage of this trend by renovating these houses, which not only boosts sales but also restores the homes to their former glory. This renovation wave is breathing new life into Zebbug's historic streets.

Foreign buyers are also showing a growing interest in Zebbug's real estate market. The area's rich cultural heritage and the chance to restore traditional houses to their original charm have caught international attention. This has been further fueled by media coverage, both local and international, which highlights Zebbug's unique charm and renovation potential.

For those looking to invest, Zebbug offers a slice of authentic Maltese life, with its traditional homes providing a canvas for creativity and restoration. The town's appeal is not just in its architecture but also in the lifestyle it promises. Buyers are not just purchasing a property; they are investing in a piece of Malta's history.

As more people discover Zebbug, the demand for these traditional homes is expected to grow, making it a hotspot for those seeking authenticity and charm. The combination of cultural heritage and renovation opportunities makes Zebbug a unique and attractive option for property buyers.

Sources: Malta Property Association, Knight Frank, Times of Malta

infographics comparison property prices 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.

9) Birgu is gaining attention for its historic charm and rising property values, driven by trendy restoration projects

Birgu is becoming a hotspot for property buyers due to its rich history and cultural significance.

With the influx of over 70,000 tourists visiting the Grand Harbour in early 2023, mostly from Europe, the area is buzzing with activity. This surge in visitors naturally boosts the demand for properties, pushing up their values. The charm of Birgu, with its narrow streets and historic buildings, is drawing more people who want to experience its unique atmosphere.

International buyers are also showing increased interest in Maltese properties, and Birgu is no exception. While specific numbers for Birgu aren't available, the overall trend indicates that historically significant areas are becoming popular among foreign investors. This growing international interest is a clear sign that property values are on the rise.

The local government is actively promoting Birgu's cultural heritage, which is attracting even more attention. By focusing on restoration projects, the Ministry for Tourism and the Malta Tourism Authority are turning Birgu into a prime location for both tourists and investors. This strategic push is making the area even more appealing, further driving up property values.

Birgu's transformation into a trendy area for restoration projects is not just about aesthetics; it's about creating a vibrant community. The combination of government initiatives and international interest is breathing new life into the area, making it a desirable place to live and invest.

As Birgu continues to evolve, its property market is expected to keep growing. The blend of historical charm and modern investment opportunities is setting the stage for a bright future in this picturesque town.

Sources: Housing Market Predictions, Q1 Tourism Results, 2025 Forecast

10) Marsascala is gaining interest for its affordable seaside homes and growing local buyer interest

Marsascala is becoming a hot spot for property buyers, thanks to its affordable seaside properties and growing interest from locals.

In recent years, particularly in 2023 and 2024, Marsascala has seen a notable increase in property transactions, bouncing back from a slight dip in 2022. This trend shows a strong and sustained interest in the area, making it a promising market for potential buyers.

One major draw is the affordability of properties in Marsascala compared to other coastal towns in Malta. For example, you can snag a finished one-bedroom studio apartment for around €181,000, which is quite competitive. This price point extends to various property types, including townhouses and maisonettes, offering a range of options for different budgets.

The real estate market in Marsascala is also buzzing with activity, as the number of listings has increased, providing a wide array of choices for buyers. From penthouses to flats, there's something for everyone, catering to diverse preferences and financial plans. The quick sales of these properties further highlight the area's growing popularity.

Local buyers are particularly drawn to Marsascala, not just for its affordability but also for its charming seaside lifestyle. The town offers a relaxed atmosphere with beautiful coastal views, making it an attractive place to settle down.

With its combination of affordability, variety, and lifestyle appeal, Marsascala is carving out a niche as a desirable location for property investment. The increasing interest from local buyers is a testament to its rising status in the real estate market.

Sources: National Statistics Office of Malta, Frank Salt Real Estate, Rightmove

We believe this video shows Marsascala as a seaside town with development as a residential area and its appeal to local buyers.

11) Qawra is growing with affordable holiday apartments, attracting local and foreign retirees

Qawra is booming thanks to its affordable holiday apartments and retiree-friendly vibe.

Since 2023, the town's property market has been buzzing with activity. Demand for sea-view properties is on the rise, making Qawra a hot spot for both locals and foreigners. Developers are smartly focusing on retirees, offering larger apartments with open terraces and spacious living areas.

Qawra's charm lies in its affordability compared to pricier areas like Sliema and St. Julian’s. This makes it a magnet for retirees looking for a relaxed lifestyle without breaking the bank. Retiree-friendly living spaces are popping up, making it an attractive destination for those seeking a peaceful life.

The town's infrastructure is a retiree's dream, with cafes, restaurants, and a long promenade perfect for leisurely strolls. Qawra's vibrant community is enhanced by these amenities, making it even more appealing. The variety of holiday apartments, from budget to luxury, offers retirees great long-term stay options.

Qawra's growth is not just about the properties; it's about the lifestyle. The town offers a unique blend of affordability and quality of life, drawing in retirees from all over. Its strategic location near the waterfront adds to its allure, providing stunning views and a serene environment.

Sources: RE/MAX Real Estate Malta, Papilio Services, Global Residence Index, Holiday Lettings

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12) Mellieha is gaining interest for its family-friendly appeal and scenic views, making it a unique investment opportunity

Mellieha, Malta, is quickly becoming a top pick for those eyeing family-friendly residential investments.

With a population of about 8,200, Mellieha offers a relaxed, rural-island vibe that attracts families. Its stunning beaches and historical sites make it ideal for both vacations and everyday life, drawing more people to call it home.

New residential developments are popping up across Malta, hinting at ongoing construction in Mellieha to accommodate new residents. This expansion is a green light for investors, showing the area's readiness to meet growing demand.

While specific school data isn't available, Mellieha's family-friendly reputation suggests potential investments in educational infrastructure. Its tourist appeal, with spots like Ghadira Bay and the Red Tower, adds to its charm.

Past real estate reports highlight a high return on investment in Mellieha properties. The demand from both local and international buyers is expected to persist, making it a promising investment area.

Residents and visitors often rave about Mellieha's charm and picturesque landscapes, enhancing its allure as a place to live and invest.

Sources: JK Properties, European Commission, Global Property Guide, Travel2Malta

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.