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Current Houses For Sale in Malta
Current real estate market conditions in Malta, especially when it comes to property offered for sale, are still very dynamic. There is continued and strong demand for all types of property due to Malta’s favourable tax regime, the buy-to-let market and all the incentives on offer by the government. Prices have thus been rising steadily.
The local market has a strong reputation for its ability to impress and remain resilient, despite current pressure being exerted on households by inflation. This resilience has inspired both local and international buyers to invest in Malta real estate, something which was further fuelled by Malta’s ever-growing economy, the allure of residency and citizenship programmes on offer and of course, Malta’s extremely profitable buy-to-rent sector which caters mainly to foreign workers.
Demand still outstrips supply in the local rentals market and savvy investors have long realised that here, returns are twofold: rental yields are in the region of 4% to 5% but this is coupled with a remarkable capital appreciation of nearly 6%. The trend is also for tenants to take in flatmates or rent out bedrooms in order to share the rising cost of rentals, as some market experts have noted that rentals have gone up by as much as 19% since 2022. Many developers see an opportunity in the market where smaller studio and one to two bedroom apartments will be ideal, as not only will they be more affordable, but they will also be perfect starter homes for first-time buyers and easier to rent out.
When we look at the bigger picture, Malta has seen an average increase in the asking price of 10.5% for properties offered as for sale when compared to the previous year and this makes it one of the most profitable countries in Europe to invest in property.
The highest demand from buyers is still for properties located in the central areas of Valletta, Sliema and St Julian’s. These areas are the most popular with both locals and foreigners as it offers a wide range of amenities and attractions but also makes them the most desirable and expensive.
The popularity for coastal properties can also be witnessed in areas such as Mellieha, St Paul’s Bay and of course the towns and villages of Gozo that are close to the sea. Gozo has experienced some of the highest growth increases for all types of properties the past year, outperforming even Sliema and St Julian’s.
Due to all these factors, the market is extremely favourable for sellers but obviously more challenging for buyers, resulting in many of them having to compromise on location in order to get more value. It is predicted that price growth will stabilise to a more moderate level in the coming years, something the market has predicted for some time. This readjustment will come sooner for older properties that have not been properly updated and modernised.
Leaders in the real estate industry all have the sentiment that it is very unlikely that there will be a drop in property prices any time soon. It is far more than likely that a measure of positive realism will be setting in, leading to long-term, sustainable and realistic growth.
