Let’s talk real estate in Malta—prices have jumped about 53% since 2015, roughly matching the EU’s annual growth rate of around 5%. If you’re eyeing upscale coastal areas near the capital city, Valletta, get ready to open your wallet wide. For instance, a cozy 176 m² apartment near the northern harbour starts at around €740,000.
What’s the Average Price per Square Metre in Malta?
If you’re considering Malta for investment, residency, or simply a vacation home, it’s crucial to understand property costs per square metre. On average, you’ll pay around €3,300 per square metre across Malta.
But prices swing significantly from about €1,500 in affordable regions to €7,500 in prime locations like Valletta. Over on Gozo island, Rabat sees prices between €3,000 and €4,000 per square metre—quite the difference!
In the first half of 2024 alone, 6,353 properties sold, averaging €374,000 for apartments and €680,000 for houses. Interestingly, individual buyers dominated the market, accounting for around 90% of all purchases.
Can Foreigners Easily Buy Property in Malta?
Foreign buyers definitely have some hoops to jump through. Non-EU investors usually need an Acquisition of Immovable Property (AIP) permit, limiting them to just one home, strictly for personal use—no renting allowed. Expect the process to take around 4-6 months.
However, there’s a fantastic workaround: Special Designated Areas (SDAs). These special zones have fewer restrictions, meaning you can buy multiple properties, rent them out freely, and wrap up the purchase within 2-3 months. Malta boasts 16 such SDAs across its islands, making them perfect for quick, hassle-free investment.
Quick Breakdown: SDA vs Non-SDA Zones In Malta
Buying in SDAs:
- No permit required
- Multiple properties allowed
- Renting is permitted
- Purchase time: 2-3 months
Buying outside SDAs:
- AIP permit needed
- Only one property allowed
- Renting prohibited
- Purchase time: 4-6 months
Most Popular Areas For Real Estate In Malta
Malta’s real estate popularity varies by region. In early 2024, the Northern Harbour district—including hotspots like Birkirkara, Gżira, Sliema, and St. Julian’s—was buzzing with activity. Buyers mostly flocked to apartments, penthouses, and maisonettes within SDAs, while those buying outside SDAs targeted villas, terraced houses, and charming historic buildings.
Here are the top 5 districts preferred by foreign buyers:
- Gozo Island: Especially Għarb and Għajnsielem
- Birkirkara District: Includes Gżira, Msida, Ta’ Xbiex, San Ġwann
- Saint Paul’s Bay: San Pawl il-Baħar, Mellieħa
- St Julian’s Area: St Julian’s, Sliema, Pembroke, Siġġiewi, Għargħur
- Southwest Coast: Marsaskala, Żabbar, Żejtun, Birżebbuġa, Marsaxlokk
Prices are highest near Valletta (think Sliema or St Julian’s), while Gozo and Malta’s southwest coast offer more affordable options. For example, a 100 m² apartment might cost €74,000 in Gozo, but triple that in upscale Sliema.
Property price growth 2016-2023 (in %)
Malta Property Prices 2025: Is The Cost Of Real Estate Still Going Up?
Apartment prices particularly have surged. Data from Eurostat shows an 8.8% increase in the second quarter of 2024 compared to the previous year. Terraced houses and maisonettes saw more moderate growth of around 3.2% and 1.6%, respectively.
Keep in mind, buyers usually incur additional costs (taxes and fees) between 8% to 15% of the property’s price. For instance, a €375,000 apartment might add another €30,000 to €56,250 in fees. The upside? Malta doesn’t have an annual property tax. Maintenance averages around €3,400 annually, and rental income is taxed progressively or at a flat 15% rate.
Is Getting a Mortgage in Malta Easy?
Mortgage interest rates here are surprisingly stable. While rates spiked to around 7% during the pandemic, they’re now comfortably back between 2.5% to 3%. Local giants Bank of Valletta and HSBC Malta handle around 66% of mortgages, making financing straightforward.
Why Invest in Malta Real Estate?
Here’s why Malta’s property market makes sense for savvy investors:
- Steady Profits: Property values consistently rise about 5% yearly, and rental yields hover around 5.4%.
- Residency Perks: Buying property can grant you residency or even permanent residence via investment, allowing visa-free travel within Schengen states.
- Citizenship Opportunities: Malta also offers citizenship pathways for exceptional investment, opening visa-free doors to 169 countries, including the US, Canada, and the UK. Family members benefit, too!
Investing in Malta isn’t just buying property—it’s buying a lifestyle, convenience, and robust financial returns!
Ready to Find Your Dream Home in Malta?
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