Back to Blogs
Over the past five to ten years, interest in Gozo property has evolved from a niche, mostly domestic market into a highly visible international opportunity. Price pressure from the main island of Malta, a growing appetite for low-density living and better remote-working infrastructure have all combined to refocus attention on Gozo. National reports show that Malta’s residential market continues to expand while becoming more selective and that rising interest in peripheral locations such as Gozo has become a defining feature of recent years.
A Slower Pace of Life, with Prices on the Rise
Gozo’s key demand drivers are straightforward: relative affordability, an unhurried island lifestyle and a portfolio of traditional houses and houses of character ideal for careful restoration. The island has become increasingly attractive to those seeking permanent relocation, as well as investors pursuing holiday-let returns or long-term capital appreciation.
Gozo was once considered the more affordable alternative to Malta, but that “bargain” stock is now dwindling as the island’s popularity and visibility increase. At the same time, Gozo’s cultural depth, thriving artistic community and slower rhythm of life have made it even more appealing for those looking for a place that balances authenticity with comfort.
Who is Buying on Gozo?
Buyer profiles are diverse. Locals remain active, but foreign interest – particularly from EU citizens and northern European buyers – has continued to grow. Importantly, UK buyers have been a consistent presence since the 1980s, forming one of the earliest and most enduring international buyer groups on the island. More recently, demand has also come from Germany, South Africa and even the USA. Marie Grech, the Frank Salt Real Estate Director for Gozo noted: “Notable are the number of buyers from France, Germany and even South Africa, although a new influx has emerged from the USA recently where economic and political uncertainty has encouraged many to look at the EU for stable residency options and investment opportunities.”
Types of Properties in Demand
Traditional houses and houses of character remain the hallmark of Gozo’s property market. These homes, often built from local limestone and featuring courtyards, arches and thick walls, appeal to those seeking authenticity, privacy and charm. Many buyers look for properties with potential for conversion, offering opportunities to blend old-world character with modern amenities.
Smaller apartments and maisonettes are popular among long-term residents and young families, while boutique villas and restored townhouses continue to attract higher-end buyers and short-term rental investors.
There is a clear division in use: permanent residents and retirees often prefer apartments or upgraded townhouses close to services, while holiday-home buyers focus on houses of character and seafront apartments that perform well in the rental market.
Investors also show strong interest in properties that can flex between long-term and short-term rentals or be converted into boutique guest accommodation. Gozo’s quieter environment and scenic beauty push buyers towards homes offering outdoor space, sea views, or easy access to the countryside.
Prime Locations & Hotspots
Several localities consistently stand out. Victoria (Rabat) remains the commercial and cultural heart of Gozo, offering year-round convenience, amenities and a strong rental market – especially appealing for investors in long-term and short-term lets.
Xaghra is known for its mix of countryside and coastal proximity, as well as its vibrant community life. Seaside villages such as Marsalforn and Xlendi remain popular for holiday lets, restaurants and easy access to the sea. Nadur, Gharb and Sannat continue to attract those seeking traditional village life and a slower pace of living.
On the eastern side of the island, demand has risen notably thanks to its proximity to the Gozo Channel ferry terminal- making it ideal for those who work or commute regularly to Malta.
Price Ranges & Investment Potential
Property prices in Gozo vary widely depending on size, location and condition. Apartments and maisonettes range from entry-level options to mid-range renovated units, while larger houses on a substantial piece of land now command a high premium due to their rarity.
Compared with mainland Malta, Gozo still offers better value per square metre for character and views, though this gap has narrowed in recent years. Reported gross rental yields in Malta average around 4%, while Gozo investors often achieve comparable or slightly higher returns, particularly on well-managed holiday lets. The demand for rental properties has increased sharply, fuelled by an influx of foreign residents and professionals seeking both short- and long-term accommodation.
High-performing property categories include boutique conversions and quality houses of character with pools, which often outperform standard long-term rentals.
Buyer Motivations
Buyers range from retirees seeking tranquillity to remote workers drawn by connectivity and balance, families relocating for safety and community and investors targeting rental income and capital growth. The post-pandemic embrace of remote work has further strengthened Gozo’s appeal, as professionals from across Europe view the island as a viable and attractive base.
Beyond practical considerations, Gozo’s rich cultural life, local festivals and large artistic community offer a lifestyle that feels both inspiring and deeply connected to tradition.
Challenges & Considerations
Prospective buyers should note that planning authority restrictions in Gozo have become increasingly stringent, with tighter controls on new development, renovation works and land use. This has further increased the value of existing properties and plots with permits already in place.
As always, buyers should account for renovation costs, engage trusted local agents and perform thorough due diligence. Negotiation margins typically allow 5–10% flexibility depending on market conditions and property type.
Legal Aspects for EU and Non-EU Buyers
Non-EU nationals or non-residents generally require an Acquisition of Immovable Property (AIP) permit, which may limit purchases to a single residence unless the property is in a Special Designated Area (SDA), which offers exemptions. It is best to speak to a professional property consultant to establish what the latest rules and regulations are regarding purchasing a property if you are not resident in Malta. Programmes such as the Malta Permanent Residency Programme (MPRP) also provide added flexibility for property investors. Legal advice regarding which is the best type of residency is highly recommended in the early stages.
Buying in Gozo? Rest assured that you have the backing of our holistic circle of services
Frank Salt Real Estate can guide buyers through each stage of the purchasing, selling or rental processes: pre-sale client services and concierge, relocation support for those moving to Malta, financial guidance and mortgage introductions, legal support and due diligence, extensive property listings and area insights from expert consultants, property management for landlords who want rentals handled, commercial sales and rentals, long and short-term rental services, after-sales support and home interiors assistance for refurbishments or shell completions. Our presence on Gozo and nationwide network can shorten search times, clarify legal requirements and provide operational support for investors and residents alike.
Final thoughts
Gozo’s appeal is not just price; it is a layered proposition of lifestyle, conversion potential and a maturing market that rewards thoughtful investment. With us as your best local partner handling legal, financial and management details, the demand for Gozo property is an ever-increasing and extremely popular option for local and international buyers looking to combine quality of life with a realistic investment upside. Frank Salt Real Estate has been the first agency to establish a presence on Gozo and with more than 56 years as Malta’s market leader, we are your best qualified to make your buying, selling or renting experience a stress-free and enjoyable one.
Get in touch.
