Malta boasts an exceptional real estate market. Apartments and villas are, particularly sought-after residential properties; however, you may also come across traditional houses. Find out the best info about Malta real estate.
Demand for Maltese property has seen an upswing since 2021, spurred on by government measures on housing.
At current market prices, a median two-adult household can afford a fully furnished 115 sqm apartment.
Demand for property in Malta has been strong. It continues to increase due to economic migrants needing housing, locals looking for new areas due to growing business opportunities and the desire for living closer to work, and tourism.
These factors should continue to spur demand in the market, although there is the possibility that they could begin dampening it in the long run. Increased living costs and interest rates could adversely impact and decrease purchasing activity, resulting in slower demand growth.
Though demand has varied across Malta, Birgu, Senglea, and Cospicua, have experienced the most significant spikes in property transactions, while Valletta has remained stable – even witnessing decreases in property prices!
Dhalia’s extensive database of over 65,000 property transactions provides data essential for accurate analysis of what is happening in the real estate market; these indices allow comparison between properties while considering different characteristics such as location, size, and type.
While there are encouraging signs that Malta’s housing market may be making progress towards recovery from its slump, it remains vulnerable to external forces such as high inflation, tightening monetary policy, and supply chain challenges. Such pressures may spread into other markets and cause interest rates to rise while demand decreases significantly.
According to a report issued by Grant Thornton Malta and Dhalia, current selling prices of housing units are considered “barely sustainable,” provided disposable income remains stable or increases at an equal pace. By 2021, two young adult households could afford only an apartment covering 115 square meters.
Although Malta’s housing market may not be bustling with activity, rental properties remain lucrative investments despite stagnating housing values. Property values in Malta typically increase 5% each year – making it an appealing option for investors seeking a profitable return on their investments and residence permits for themselves and their families.
Malta’s property landscape can be complex, which necessitates expert guidance. Our real estate agents inspect properties daily and can provide the insight required for making informed decisions. Contact us now to start the process – we offer professional valuations and free consultations!
Keep in mind that property prices depend heavily on their location. In Malta, prices differ substantially between areas and even within localities – an apartment located centrally will cost significantly more than one located away from tourist hot spots.
At this stage, it is wise to seek the assistance of experienced real estate agents. They will lead you through the process and assist in finding a home within your budget while offering guidance regarding available options and helping prevent costly errors.
Malta’s property market is affordable and boasts numerous benefits, such as a low crime rate and political stability, plus being central Mediterranean position and offering a lower cost of living than many European countries.
Malta makes it possible to purchase a brand-new apartment for as little as EUR199,000; however, an old or renovated flat may cost significantly more. When searching for the ideal new apartment, visiting an agent and discussing your ideas may help. After this discussion has concluded, expect to be shown several flats. Generally, the buying process only takes around two weeks.
As Malta is a popular tourist destination, foreign demand has negatively impacted its property market. Coupled with a robust economy and pro-immigration policy, foreign buyers have led to rising rental costs, making selling homes increasingly challenging for homeowners.
Michael Stivala, President of the Malta Developers Association (MDA), reported that building costs had increased 30-40 percent – translating to an estimated increase of EUR10,000-EUR15,000 per apartment when factoring in the land, marketing fees, and estate agent commission.
Malta remains relatively affordable compared to other European countries; affordability depends on whether the buyer wishes to live near their workplace and can cover the associated transport costs.
Considerations must also be given to lifestyle and amenities in any particular location. Many buyers opt for apartments in Malta’s bustling cities like Sliema and St Julian’s, as these areas provide an ideal combination of new residential developments, shops, restaurants, and office space.
Expert advice should always be sought when purchasing property in Malta, and our real estate agents at Let Buy Mark regularly inspect properties to provide a professional valuation of prospective homes.