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Malta’s remains a hugely popular relocation destination for many, whether it is for work, emigration or retirement. While Malta is still considered as affordable, living costs have slowly been rising the last few years. With this article we will investigate what the average costs are that one can expect when calling the islands home, as understanding the financial implications to live comfortably in Malta is paramount even before getting here. Our focus will be particularly on real estate, which is a crucial component for prospective new residents, no matter if you are buying or renting.
(Note that the amounts quoted below are generalised and may vary.)
A Background to Housing Costs in Malta
The Maltese real estate market has experienced significant growth in recent years. In 2024, property prices increased by 6.9% compared to the previous year, nearly doubling the average increase across the European Union. This surge has been consistent, with earlier quarterly increases of 6.9% and 6.7%.
The National Statistics Office (NSO) reports that the Residential Property Price Index (RPPI), which covers both apartments and maisonettes, climbed to 161.34 in Q2 2024, reflecting a robust 6.8% increase year-on-year. This sustained growth follows a remarkable trend, as the index has risen from 115.36 in Q2 2018 to its current peak, demonstrating the enduring strength of Malta’s property market.
Apartments remain the most sought-after type of property in Malta, with prices increasing by 6.9% over the past year to reach an index value of 162.93. Maisonettes have also seen significant appreciation, with their index rising by 6.6% to 155.83, indicating strong demand across multiple segments of the market.
Rental prices have also seen an upward trend. A recent Eurobarometer survey highlights the severity of the situation, revealing a 4.6% annual increase in property prices and an even more striking 17.5% rise in rental costs. Over the past 15 years, property prices have surged by 62.6%, while rental prices increased by 56%, creating significant barriers for both first-time homebuyers and renters alike.
Government Initiatives and Budget Measures for Buyers
In response to the escalating property prices and to support both buyers and sellers, the Maltese government has introduced several measures in the 2025 budget:
- New Scheme for Emphyteusis Contracts: A new initiative will assist residential property owners in redeeming temporary emphyteusis contracts, with expanded eligibility for current and previous schemes.
- Incentives for Older Properties: To encourage the purchase of older properties, the government has extended measures for first-time buyers who purchase properties within an Urban Conservation Area (UCA) that were built over 20 years ago and have been vacant for more than seven years. Qualifying individuals will receive €15,000 if the property is situated in Malta or €40,000 if located in Gozo.
- First-Time Buyer’s Grant: This grant has been extended, entitling first-time buyers to a €10,000 grant spread over 10 years for properties not exceeding €500,000. Additionally, first-time and second-time buyers can enjoy reduced stamp duty on the first €200,000 of the property’s value, provided it will be used as their primary residence.
- VAT Refunds: The first-time buyers VAT Refund scheme offers refunds to those who build or renovate their homes. It has been amended to benefit single individuals as well as married persons. Owners can also benefit from a VAT refund of up to €54,000 on the first €300,000 spent on refurbishment works on qualifying properties.
Cost of Living Adjustment (COLA)
To compensate for inflation, the government has announced a cost of living adjustment (COLA) of €12.81 per week for 2024. This increase aims to address the rising costs of consumer products and services, ensuring that residents maintain their purchasing power.
Estimating Monthly Expenses
To live comfortably in Malta, it’s essential to consider various monthly expenses:
- Housing: Depending on the location and type of property, monthly rent for a one-bedroom apartment can range from €800 to €1,500. Purchasing property involves additional costs such as stamp duty, notary fees, and potential renovation expenses.
- Utilities: Electricity, water, and internet services typically amount to €100 to €150 per month.
- Groceries: A monthly grocery bill for an individual may range between €250 and €400, depending on dietary preferences.
- Transportation: Public transport is relatively affordable, with monthly passes costing around €26. Owning a car introduces expenses like fuel, insurance, and maintenance, which can total €200 to €300 monthly. Luckily many residents find accommodation close to work and therefore have little or no expenses when it comes to commuting between the two.
- Healthcare: While public healthcare is available, many opt for private health insurance, costing approximately €50 to €100 per month.
- Leisure and Dining Out: Allocating €200 to €300 monthly allows for dining out and recreational activities.
Groceries
Groceries in Malta are reasonably priced, but some items, particularly imported goods, can be more expensive. Here’s an overview of typical grocery costs:
- Milk (1 litre): €1.10
- Loaf of bread (500g): €1.20–€1.50
- Eggs (12): €2.60–€3.50
- Chicken breasts (1kg): €8.00–€10.00
- Rice (1kg): €2.20–€3.00
- Cheese (local, 1kg): €10.00–€12.00
- Apples (1kg): €2.50–€3.50
- Potatoes (1kg): €1.20–€2.00
Utilities
- Utility costs in Malta depend on your property size and usage. On average, monthly utility bills (electricity, water, and gas) for a one-bedroom apartment total €80–€120. If you live in a larger property, expect to pay €150–€200 monthly.
- Internet packages typically cost around €30–€45 per month for high-speed connections.
Dining and Leisure Costs
Eating out is an integral part of Maltese culture, and the island offers a range of dining options.
- Casual meal for one at a mid-range restaurant: €15–€20
- Three-course meal for two at a nice restaurant: €50–€70
- Coffee (cappuccino): €2.00–€3.50
- Leisure activities such as gym memberships cost around €40–€70 per month, while
- Cinema tickets are around €8–€10 each.
Considering these expenses, a single individual might require a monthly budget of €1,800 to €2,500 to live comfortably in Malta although some live on less without any issues. For couples or families, this amount would increase accordingly.
Conclusion
Malta offers a high quality of life but rising real estate prices and the overall cost of living will always necessitate careful financial planning for those considering relocation to this island nation. Malta is still cheaper than comparable areas in the UK, Germany and France but no longer as affordable as Italy and Spain although monthly expenses in metropolitan centres such as Madrid, Barcelona, Rome and Milan are expensive, especially when it comes to housing.
If you are in the market to buy, sell or rent a home and have a very specific budget in mind, we at Frank Salt Real Estate can assist you in finding the perfect home. With more than 55 years of experience in the local real estate market and operating on both Malta and Gozo from 18 offices, give us a call.
