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Yes, the analysis of Valletta's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Valletta? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Sliema or St. Julian's where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Malta Property Pack.
Will property prices increase in Valletta in 2025?
Yes, property prices in Valletta are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Valletta remains one of the most attractive cities in the Mediterranean for both domestic and international investors.
Sure, there are some economic challenges like inflation and rising interest rates, but the main drivers behind Valletta’s price growth remain strong.
Demand, especially in the historic and cultural areas, continues to outstrip supply, making any major price dips unlikely. Valletta’s status as a UNESCO World Heritage site and its vibrant cultural scene keep drawing in buyers from around the world.
Signals pointing to a property price increase in Valletta
Here are some factors suggesting prices could increase:
The limited availability of land for new developments in Valletta means that existing properties are in high demand, which is likely to push prices up as buyers compete for a limited number of homes.
Valletta's ongoing urban regeneration projects are enhancing the city’s appeal, with improvements in infrastructure and public spaces expected to increase property values in the coming years.
The city’s growing reputation as a cultural and tourist hub is attracting more international buyers, particularly those interested in vacation homes or investment properties, which is likely to drive up demand and prices.
Government incentives for restoring and maintaining historic properties are encouraging investment in Valletta’s real estate market, leading to an increase in property values as more buildings are renovated and modernized.
The trend of remote working is leading to an influx of digital nomads and expatriates seeking a Mediterranean lifestyle, boosting demand for residential properties in Valletta.
Signals pointing to a property price decrease in Valletta
Here are some factors suggesting prices could fall:
Rising inflation and living costs are putting pressure on household budgets, which could reduce the purchasing power of local buyers and dampen demand for properties in Valletta.
Higher mortgage interest rates are making it more expensive for buyers to finance property purchases, potentially cooling demand, especially among first-time buyers and those looking for investment properties.
Economic uncertainties in the broader European market could impact investor confidence, leading to a slowdown in property transactions and a potential stabilization of prices in Valletta.
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If property prices go up in Valletta, how much would they increase by?
If real estate prices in Valletta were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in dynamic markets like Valletta appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, season, and property type.
It means that, if you spot a charming 2-bedroom townhouse in the historic center for 400,000 euros today, don't be surprised if it's priced between 412,000 and 428,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Valletta real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Historic Townhouse (100 sqm / 1,076 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Modern Apartment (80 sqm / 861 sqft) | €350,000 | €360,500 | €367,500 | €374,500 |
| Luxury Penthouse (120 sqm / 1,292 sqft) | €1,000,000 | €1,030,000 | €1,050,000 | €1,070,000 |
| Studio (40 sqm / 431 sqft) | €200,000 | €206,000 | €210,000 | €214,000 |
| Loft (90 sqm / 969 sqft) | €600,000 | €618,000 | €630,000 | €642,000 |
| Seafront Apartment (110 sqm / 1,184 sqft) | €800,000 | €824,000 | €840,000 | €856,000 |
| Investment Property (70 sqm / 753 sqft) | €300,000 | €309,000 | €315,000 | €321,000 |
Everything you need to know is included in our Property Pack for Valletta
If real estate prices go up in Valletta, which areas are likely to see the biggest increases?
Today, people who want to move to Valletta want the charm, but they also want modern conveniences and vibrant social scenes, which St. Julian's delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Sliema has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Valletta market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| St. Julian's | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Sliema | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Valletta. |
| Gzira | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Ta' Xbiex | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Pieta | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Floriana | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Marsamxett | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Msida | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Pembroke | Medium-High | Its proximity to Valletta, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Birkirkara | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Mellieha | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Valletta Waterfront | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Valletta
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Valletta?
In 2025, Valletta real estate trends focus on tech-smart, energy-efficient apartments, historic townhouses with modern amenities, properties with sea views, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Historic Townhouses with Modern Amenities:
Valletta's rich history and architecture make its townhouses highly desirable. Renovations that blend historic charm with modern comforts are particularly appealing to both locals and expatriates.
- Properties with Sea Views:
Valletta's coastal location makes properties with sea views especially attractive. These features offer a serene escape and are likely to drive up property values, particularly in the post-pandemic era.
- Eco-Friendly Buildings with Low Carbon Footprints:
Valletta's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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