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
Malta's property market in 2026 remains one of Europe's most dynamic, with prices continuing to rise between 5% and 7% year-on-year and rental demand driven by a steady influx of foreign workers in iGaming, finance, and tech.
Whether you are looking for rental yield, capital appreciation, or a mix of both, choosing the right neighborhood in Malta matters more than ever because price gaps between localities can reach 200% or more.
We constantly update this blog post to reflect the latest official data, market trends, and on-the-ground insights from our team.
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.
What's the Current Real Estate Market Situation by Area in Malta?
Which areas in Malta have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for property in Malta are Portomaso in St Julian's, Tigné Point in Sliema, and central Valletta near Republic Street, where luxury apartments and heritage conversions command the highest prices on the island.
In these prime Malta locations, asking prices typically range from €5,500 to €9,000 per square meter for renovated apartments, with ultra-premium seafront penthouses sometimes exceeding €10,000 per square meter.
Each of these top-priced areas in Malta has a distinct driver behind its premium values:
- Portomaso (St Julian's): Marina access, 5-star hotel amenities, and SDA status attracting international buyers without permit restrictions.
- Tigné Point (Sliema): Newer luxury towers with high resale liquidity and direct views of Valletta's UNESCO skyline.
- Valletta (Republic Street vicinity): Extreme scarcity of units, heritage character, and strong short-let demand driving €/m² higher despite smaller unit sizes.
Which areas in Malta have the most affordable property prices in 2026?
As of early 2026, the most affordable areas to buy property in Malta include Paola, Hamrun, Fgura, and Zejtun, where entry prices remain significantly lower than in prime coastal districts.
In these budget-friendly Malta localities, typical asking prices range from €2,500 to €3,700 per square meter for standard apartments, with the lower end often reflecting older building stock or less central streets.
The main trade-off when buying in these lower-priced Malta areas is limited walkability to seafront amenities, higher density of older concrete buildings, and narrower resale demand compared to coastal locations like Sliema or St Julian's.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Malta Offer the Best Rental Yields?
Which neighborhoods in Malta have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Malta with the highest gross rental yields are Birkirkara (central streets near Mrieħel), San Ġwann, Msida (non-waterfront blocks), and St Paul's Bay, where yields typically range from 4.5% to 6.5% depending on property condition.
Across Malta as a whole, typical gross rental yields for investment properties range from 3% in prime seafront areas to around 6% in worker-demand corridors and coastal volume markets like Qawra.
Each of these high-yielding Malta neighborhoods delivers stronger returns for a specific reason:
- Birkirkara (Mrieħel edge): Lower purchase prices combined with steady demand from local workers commuting to nearby business parks.
- San Ġwann / Swatar: Central location attracting young professionals who prioritize affordability over seafront living.
- Msida: Proximity to the University of Malta and Mater Dei Hospital creates constant tenant demand year-round.
- St Paul's Bay / Qawra: High supply keeps prices affordable while tourist and expat rental demand remains strong.
Finally, please note that we cover the rental yields in Malta here.
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Which Areas in Malta Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Malta perform best on Airbnb in 2026?
As of early 2026, the top-performing neighborhoods for Airbnb in Malta are Valletta (around 70% occupancy, average daily rate of €130), Sliema (mid-60% occupancy), Mellieħa (60%+ occupancy with higher nightly rates), and St Paul's Bay (high volume but lower rates).
In these best-performing Malta short-let areas, top properties can generate monthly revenues ranging from €2,500 to €4,000 during peak season, with Valletta heritage apartments at the upper end and St Paul's Bay resort units at the lower end.
Each of these Malta Airbnb hotspots outperforms for a distinct reason:
- Valletta: UNESCO heritage appeal and city-break demand from European travelers year-round.
- Sliema: Combination of seafront promenade, restaurants, and easy ferry access to Valletta.
- Mellieħa: Northern beach lifestyle attracting families and longer summer stays.
- St Paul's Bay: Budget-friendly resort market with high booking volume from package tourists.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Malta.
Which tourist areas in Malta are becoming oversaturated with short-term rentals?
The three tourist areas in Malta showing clear signs of short-term rental oversaturation are Sliema (especially Tower Road and The Strand), St Julian's (Paceville and Spinola Bay corridors), and St Paul's Bay (Buġibba and Qawra seafront strips).
In Sliema alone, nearly one in every ten livable homes has been converted to a short-let, with over 2,500 active Airbnb listings concentrated in just a few streets, and St Paul's Bay has over 1,800 active listings competing for the same tourist demand.
The clearest sign of oversaturation in these Malta areas is the combination of rising neighbor complaints about noise and waste, tightening building HOA rules against short-lets, and increasing political pressure for stricter regulation including proposed condominium approval requirements.
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.
Which Areas in Malta Are Best for Long-Term Rentals?
Which neighborhoods in Malta have the strongest demand for long-term tenants?
The neighborhoods in Malta with the strongest long-term rental demand are Msida, San Ġwann, Birkirkara (especially near Mrieħel), and Gżira, where proximity to jobs, hospitals, and the university keeps vacancy rates low.
In these high-demand Malta rental areas, well-priced apartments typically rent within two to three weeks, and vacancy rates remain among the lowest on the island due to consistent demand from workers and students.
Each of these Malta neighborhoods attracts a distinct tenant profile:
- Msida: University students and hospital staff seeking walkable access to campus and Mater Dei.
- San Ġwann / Swatar: Young professionals and couples priced out of Sliema but wanting central access.
- Birkirkara (Mrieħel edge): Local families and workers employed in nearby business parks and logistics hubs.
- Gżira: Expats working in St Julian's who want lower rents than Sliema with similar convenience.
The key amenity that makes these Malta neighborhoods attractive to long-term tenants is reliable bus connections to Valletta and St Julian's, combined with everyday services like supermarkets, pharmacies, and cafes within walking distance.
Finally, please note that we provide a very granular rental analysis in our property pack about Malta.
What are the average long-term monthly rents by neighborhood in Malta in 2026?
As of early 2026, average long-term monthly rents in Malta for a typical 2-bedroom apartment range from around €900 in St Paul's Bay to over €2,000 in prime Sliema and St Julian's, with significant variation depending on building quality and parking availability.
In the most affordable Malta neighborhoods like Paola, Hamrun, and Tarxien, entry-level 2-bedroom apartments typically rent for €750 to €1,100 per month, offering the lowest cost of living on the island.
In average-priced Malta neighborhoods like Birkirkara, San Ġwann, Naxxar, and Mosta, mid-range 2-bedroom apartments typically rent for €1,000 to €1,500 per month, balancing affordability with access to services.
In the most expensive Malta neighborhoods like Sliema, St Julian's, and Ta' Xbiex, high-end 2-bedroom apartments typically rent for €1,400 to €2,200 or more per month, with premium units featuring sea views, parking, and modern finishes at the top of that range.
You may want to check our latest analysis about the rents in Malta here.
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Which Are the Up-and-Coming Areas to Invest in Malta?
Which neighborhoods in Malta are gentrifying and attracting new investors in 2026?
As of early 2026, the Malta neighborhoods showing clear signs of gentrification and attracting new investor interest include Pietà, Kalkara, Birgu (Vittoriosa), Senglea, and parts of Floriana, where proximity to prime areas combines with lower entry prices.
These gentrifying Malta neighborhoods have seen annual price appreciation of around 5% to 8% in recent years, outpacing some established areas as buyers seek value adjacent to Valletta and the Grand Harbour.
Which areas in Malta have major infrastructure projects planned that will boost prices?
The Malta areas most likely to benefit from major infrastructure investments are the Birkirkara-Attard-Balzan corridor (Central Link Project), the Marsa-Paola junction zone, and the Gżira waterfront near the planned Manoel Island redevelopment.
The specific projects driving these expectations include the Central Link Project (a €55 million upgrade halving travel times between Mrieħel and Ta' Qali), the completed Marsa Junction Project (€70 million multi-level intersection improving southern access), and the proposed Manoel Island redevelopment (mixed-use waterfront project facing Gżira).
Historically, Malta areas near completed infrastructure projects have seen price increases of 5% to 15% over the following three to five years, with the strongest gains occurring in localities where the improvement directly reduced commute times or added new amenities.
You'll find our latest property market analysis about Malta here.
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.
Which Areas in Malta Should I Avoid as a Property Investor?
Which neighborhoods in Malta with lots of problems I should avoid and why?
Rather than avoiding entire towns, the common investor traps in Malta are specific micro-locations: over-touristed short-let corridors like Tower Road in Sliema, poorly maintained buildings in high-turnover zones like parts of Buġibba, and ultra-seasonal pockets like certain Gozo coastal strips.
Each of these problematic Malta locations has a distinct issue:
- Tower Road / The Strand (Sliema): Extreme STR density causing noise complaints, HOA conflicts, and regulatory risk.
- Paceville-adjacent streets (St Julian's): Nightlife noise until 4am making long-term tenants difficult to find.
- Older Buġibba/Qawra blocks: Poor build quality, weak HOA management, and high tenant turnover eroding returns.
- Marsalforn/Xlendi seafront (Gozo): Extreme seasonality with 4-6 month void periods killing net yields for leveraged buyers.
For any of these Malta areas to become viable investments, you would need either a significant price discount (20%+ below comparable streets), building-level improvements like new HOA management, or regulatory clarity that reduces uncertainty around short-let rules.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Malta.
Which areas in Malta have stagnant or declining property prices as of 2026?
As of early 2026, Malta's official national data shows continued price growth of 5% to 7% year-on-year, so there are no entire localities experiencing broad price declines, but individual properties in oversupplied micro-markets or with resale friction have underperformed.
Properties that have seen flat or below-average appreciation over the past two to three years typically share characteristics like poor layouts, lack of parking, legal complications, or location in buildings with excessive investor turnover.
The main underlying causes of underperformance in specific Malta properties include:
- Older Buġibba blocks: Oversupply of similar units creating price competition and downward pressure on per-unit values.
- Marsa industrial-adjacent streets: Lack of amenities and traffic noise limiting buyer pool despite infrastructure improvements nearby.
- Certain Gozo inland villages: Very narrow resale market and car-dependency making appreciation slower than coastal locations.
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Which Areas in Malta Have the Best Long-Term Appreciation Potential?
Which areas in Malta have historically appreciated the most recently?
The Malta areas that have delivered the strongest price appreciation over the past five to ten years are Sliema (prime pockets like Tigné Point and Fort Cambridge), St Julian's (Portomaso and Pendergardens), Valletta (core heritage streets), and select Three Cities heritage conversions in Birgu.
Each of these top-performing Malta areas achieved distinct appreciation levels:
- Tigné Point (Sliema): Estimated cumulative appreciation of 60% to 80% over the past decade due to scarcity and luxury demand.
- Portomaso (St Julian's): Around 50% to 70% total appreciation driven by international buyer interest and SDA status.
- Valletta core: Heritage apartments appreciated 40% to 60% as tourism and remote worker demand surged post-2018 Capital of Culture.
- Birgu (Vittoriosa): Boutique heritage market saw 30% to 50% appreciation from a lower base as the Three Cities gained profile.
The main driver behind above-average appreciation in these Malta areas is the combination of severe supply constraints (limited land, heritage protections) and sustained international demand from buyers who can pay premium prices.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Malta.
Which neighborhoods in Malta are expected to see price growth in coming years?
The Malta neighborhoods expected to see the strongest price growth in the coming years are the Birkirkara-San Ġwann-Mrieħel corridor (benefiting from Central Link), Pietà and Floriana edges (harbour adjacency at discount prices), Kalkara (SmartCity development spillover), and Victoria in Gozo (year-round demand resilience).
Each of these high-potential Malta neighborhoods has a projected growth trajectory:
- Birkirkara / San Ġwann: Projected annual growth of 5% to 7% as infrastructure improvements attract more families and professionals.
- Pietà / Floriana edges: Projected 4% to 6% annual growth as buyers seek Valletta proximity at lower entry prices.
- Kalkara (SmartCity area): Projected 5% to 8% growth as the tech hub matures and The Shoreline development attracts residents.
- Victoria, Gozo: Projected 3% to 5% steady growth driven by year-round local demand rather than seasonal tourism.
The single most important catalyst expected to drive future price growth in these Malta neighborhoods is improved connectivity, whether through completed road projects, new ferry services, or the continued clustering of jobs in nearby business districts.
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 Do Locals and Expats Really Think About Different Areas in Malta?
Which areas in Malta do local residents consider the most desirable to live?
The Malta areas that local residents consistently consider most desirable to live are Attard, Balzan, Naxxar, Mosta, and parts of Birkirkara, where families prioritize space, schools, and quieter streets over seafront access.
Each of these locally-preferred Malta areas offers a distinct quality:
- Attard / Balzan: Prestigious village feel with larger properties, good schools, and proximity to San Anton Gardens.
- Naxxar: Family-oriented town with newer developments, supermarkets, and easy highway access to most of the island.
- Mosta: Central location with strong community identity, the famous Rotunda church, and diverse housing stock.
- Iklin: Small, quiet residential locality popular with families seeking space and low traffic.
These locally-preferred Malta areas attract primarily Maltese families with children, established professionals, and retirees who value community ties and everyday convenience over nightlife or tourism infrastructure.
Local preferences in Malta often diverge from foreign investor targets: while locals prioritize family space in central towns, foreign buyers typically focus on coastal Sliema, St Julian's, and Valletta for rental income or lifestyle, creating two somewhat separate market dynamics.
Which neighborhoods in Malta have the best reputation among expat communities?
The Malta neighborhoods with the strongest reputation among expat communities are Sliema (non-party streets), Gżira (The Strand area), St Julian's (Pendergardens and Portomaso), and Ta' Xbiex, where walkability, amenities, and English-friendly services cluster.
Each of these expat-favored Malta neighborhoods offers specific advantages:
- Sliema (quieter streets): Seafront promenade, diverse restaurants, ferry to Valletta, and strong rental market liquidity.
- Gżira: Lower rents than Sliema with similar convenience and easy access to St Julian's offices.
- St Julian's (Portomaso/Pendergardens): Upscale lifestyle with marina, hotels, and proximity to iGaming company headquarters.
- Ta' Xbiex: Quiet, premium waterfront area popular with embassy staff and senior executives seeking peace.
The typical expat profile in these popular Malta neighborhoods includes iGaming and fintech professionals on relocation packages, remote workers from Northern Europe, and retirees from the UK seeking Mediterranean lifestyle and English-language services.
Which areas in Malta do locals say are overhyped by foreign buyers?
The Malta areas that locals most commonly describe as overhyped by foreign buyers are Paceville-adjacent St Julian's, the most saturated Sliema seafront streets (Tower Road, The Strand), and certain Valletta tourist corridors where prices have outpaced practical livability.
Each of these overhyped Malta areas draws local skepticism for a specific reason:
- Paceville (St Julian's): Nightclub noise until 4am makes it unlivable for families despite premium asking prices.
- Tower Road / The Strand (Sliema): Extreme STR density creates a "hotel feel" with transient neighbors and building wear.
- Strait Street area (Valletta): Tourists love the bar scene, but locals note limited parking, small units, and noise.
What foreign buyers often see in these Malta areas that locals do not value as highly is the "Mediterranean lifestyle" image, proximity to nightlife, and short-let income potential, while locals prioritize quiet, parking, and community stability that these saturated zones often lack.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Malta.
Which areas in Malta are considered boring or undesirable by residents?
The Malta areas that residents most commonly describe as boring or undesirable are car-dependent southern towns like Qrendi and Mqabba, industrial-adjacent zones like parts of Marsa, and heavily seasonal Gozo villages like Xlendi outside summer months.
Each of these less-desired Malta areas has a specific drawback:
- Qrendi / Mqabba: Limited bus service, few amenities, and feeling "cut off" from central Malta's activity.
- Marsa (non-waterfront): Industrial character, heavy traffic, and lack of lifestyle amenities despite improving infrastructure.
- Xlendi (Gozo, off-season): Ghost-town feel from October to May when restaurants and services close seasonally.
- Ħamrun (certain streets): Dense older buildings, narrow streets, and limited green space despite central location.
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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 |
|---|---|---|
| NSO Malta (Property Statistics) | Malta's official statistics office compiling transaction data from tax records. | We used it to anchor national price trends and validate that our area estimates align with official growth rates. We also used transaction volumes to identify high-liquidity localities. |
| Central Bank of Malta | The central bank's quarterly reviews cover housing, credit, and macro conditions. | We used it to frame the early-2026 economic backdrop affecting buyer demand. We also referenced its housing market commentary to validate supply-demand dynamics. |
| Housing Authority Malta | The regulator holding Malta's rent registration dataset for primary leases. | We used it as the backbone for long-term rent levels by locality. We then adjusted those rents to early 2026 using recent growth patterns from semiannual updates. |
| PropertyMarket Malta | A major Malta portal disclosing its asking-price methodology transparently. | We used it as a January 2026 asking-price snapshot for per-square-meter estimates. We triangulated neighborhood comparisons across property types using this index. |
| AirDNA | A widely used STR analytics provider with consistent occupancy and ADR metrics. | We used it to quantify Airbnb performance in Valletta, Sliema, Mellieħa, and St Paul's Bay. We compared localities to identify strong-demand versus oversaturated zones. |
| Amphora Media (InsideAirbnb Analysis) | Investigative journalism citing the InsideAirbnb dataset with street-level detail. | We used it to identify specific streets where STR density is unusually high. We applied this as a practical oversaturation warning for investors. |
| MTCA (Malta Tax and Customs) | Official government source explaining AIP permit rules for foreign buyers. | We used it to summarize what non-residents can and cannot do outside SDAs. We reflected these constraints in our area recommendations for foreigners. |
| Infrastructure Malta | The government agency responsible for major road and transport projects. | We used it to identify which localities benefit from infrastructure investments. We referenced specific project details like Central Link and Marsa Junction. |
| Global Property Guide | An international property research platform with standardized yield calculations. | We used it to cross-check our gross yield estimates against independent benchmarks. We also referenced their price history data for long-term appreciation context. |
| Malta Tourism Authority | The official tourism regulator compiling visitor statistics and licensing data. | We used it to justify where short-let demand is structurally strongest. We also referenced licensing figures to contextualize the regulated versus unregulated STR gap. |
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