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A new report reveals that property prices in Malta have increased by 125% over the past decade. A residential unit priced at €150,000 in 2013 now commands a price of approximately €337,500.
Property prices rose by 11.4% between 2023 and 2024 alone and there are no current indicators of a slowdown, underscoring a robust upward trend in asset value appreciation across the sector.
Market composition and development trends
Based on over 62,000 property transactions, the report details the composition of Malta’s residential property market:
- Apartments and penthouses now comprise over 50% of Malta’s 297,000 homes (2021 census)
- Over 85% of new dwelling approvals since 2018 have been apartments
- The number of approved apartments fell from 11,210 in 2018 to 7,543 in 2023 (a 33% drop)
- Terraced houses now represent just 6% of newly developed units, despite a 33% increase in overall housing stock since 2011. The report identifies this as a potential signal for saturation in high-density housing and highlights the need to encourage sustainable, diverse development to future-proof the sector.
The rentals market is also expanding
Rental prices have also climbed sharply, rising by 71% since 2013. Rent for a property that cost €500 per month in 2013 now averages around €850. This has led to tenants spending, on average, over 50% of their income on rent – well above the 30% affordability threshold. In 2023, the figure stood at 56%, according to Jake Azzopardi, the CEO of the Foundation for Affordable Housing.
He cited speculative investment, supportive banking practices and wage pressure as core structural drivers behind the housing affordability gap with speculative pressures especially affecting first-time buyers who find it harder and harder to get on the property ladder.
Government response and structural reforms
Minister for Reform in the Construction Sector, Jonathan Attard, highlighted recent government interventions aimed at market correction and quality enhancement. Key initiatives include:
- The establishment of the Property Market Agency
- The introduction of mandatory contractor licensing
- The launch of the Ixtri Propjetà Sostenibbli scheme, aligning affordability with environmental sustainability
Future Outlook
Malta’s property market continues to demonstrate strong capital growth, supported by sustained demand, urbanisation trends and limited land availability. However, affordability challenges and reliance on high-density developments may introduce longer-term risks. Strategic investment in sustainable housing solutions and regulatory oversight will be pivotal for future stability and value retention.
