What are the particular elements that make Malta an attractive place to buy real estate for foreign investors?

From my experience, buyers choose Malta for many reasons, including its location, its status as an EU member state – which provides investors with access to EU markets and benefits – its English-speaking population, and its steady real estate market growth in recent years. There are also the residency and citizenship programmes, which provide foreign nationals the opportunity to live and work in Malta.

Can you identify any trends in Malta’s property market over the past year?

The main trend over the past year is the continually rising property prices due to factors such as strong demand and limited supply. With a growing population and a very strong rental market, there has been an increased demand for rental properties. This has led to higher rental prices in almost all areas.

Can you identify any specific trends or developments expected in Malta’s real estate landscape over the next five years?

Over the next five years, I expect the trend to continue shifting away from an emphasis on quantity toward a focus on quality in property developments. Buyers and investors will likely prioritise well-designed, well-located properties with high build quality over simply seeking so-called ‘bargains’. Meanwhile, stricter regulations and incentives will drive developers toward more sustainable construction practices. We will see more eco-friendly buildings featuring energy-efficient technologies, such as solar panels, improved insulation and high-quality finishes that some developers are already implementing. I believe we will also see more green spaces and pedestrian-friendly zones incorporated into new developments. Both the Government and banks are incentivising these types of buildings.

“Malta’s robust expatriate community, driven by its booming financial, IT and gaming sectors, creates steady demand for rental properties, particularly in central and northern areas.”

There have been differing interpretations of Malta’s property data, with some suggesting a slowdown while others insist the market remains strong. What is your prognosis for the coming years?

Malta’s property market will likely transition from the rapid growth seen in recent years to a more balanced and steady state. Prices are expected to continue rising, but at a slower and more sustainable pace. Ongoing Government policies, such as tax incentives for first-time buyers and schemes to restore older properties, will help maintain demand, particularly for affordable and restored homes.

Can you identify any pros and cons in Malta’s real estate market that foreign investors should be aware of?

One major attraction is the high rental yields. Malta’s robust expatriate community, driven by its booming financial, IT and gaming sectors, creates steady demand for rental properties, particularly in central and northern areas. Additionally, the thriving tourism industry supports the short-term rental market, especially in popular holiday destinations.

On the downside, high entry prices are a concern. In sought-after areas like Sliema, St Julian’s and Valletta, property prices have surged over the years. High costs may limit potential returns, especially in the luxury or high-end markets where the price-to-rent ratio can become less favourable.

Finally, there’s the risk of oversupply. Some segments of the market, particularly high-density apartments and luxury properties in prime areas, may face potential oversupply, leading to price stagnation or slower appreciation in the future.

Image credit: Inigo Taylor