Malta Real Estate Market in 2025

Market Overview and Investment Climate

The Maltese real estate market continues to demonstrate remarkable strength in 2025, with property prices rising by 3.38% in Q2 2024. Most notably, the apartment sector leads this growth with an impressive 8.8% year-over-year increase, signaling robust demand in this segment. Property transactions have increased by 4.5% in early 2024, with total transaction value reaching €2.5 billion, while average rental yields stand at 3.66%. For more details about living in Malta, check out our comprehensive where to live guide or learn about residency programs.

Prime Investment Locations

Sliema and St. Julian's

These premium districts maintain their position as Malta's most prestigious real estate markets. With consistent rental yields around 4% and strong capital appreciation potential, they remain the top choice for luxury property investments. The area's premium waterfront properties and high tourist demand make it particularly attractive for short-term rentals.

Gzira

Emerging as a smart investment alternative, Gzira combines accessibility with growth potential. The area offers lower entry prices than Sliema while benefiting from rapid infrastructure development and a strong rental market. Its proximity to premium areas makes it increasingly attractive to young professionals and investors seeking growth opportunities.

Valletta

The historic capital, with its UNESCO World Heritage status, presents unique investment opportunities through historic properties with renovation potential. Government incentives for restoration have made this area particularly attractive for investors interested in heritage properties with strong tourist rental potential.

South Harbor Area (Marsaskala)

This developing region offers excellent value for long-term investors, with more affordable entry prices and emerging infrastructure. The growing expatriate community and waterfront development potential make it an increasingly attractive option for those seeking value with growth potential.

Gozo

The sister island presents unique investment advantages, most notably through its reduced stamp duty of 2% (versus 5% in Malta). The island offers traditional properties with character and a growing tourist market, all at lower property prices than mainland Malta.

Property Purchase Regulations

Key regulations for different buyers:

EU Citizens: Can purchase one primary residence without restrictions, but need AIP permits for additional properties
Non-EU Citizens: Require AIP permits for all purchases and face higher minimum property values
Special Designated Areas: Allow multiple purchases without permits for both EU and non-EU citizens

Malta Permanent Residence Programme (MPRP)

Investment requirements for residence include: For entrepreneurs interested in combining residence with business opportunities, visit our business creation guide.

Purchase Option

Central Malta: Purchase of property with minimum value of €275,000
South Malta/Gozo: Purchase of property with minimum value of €220,000
Properties acquired before June 2013: Need to prove current value with independent architect valuation if initial purchase price was below current requirements

Rental Option

Lease contract: Minimum 12-month commitment
Central Malta: Minimum annual rent of €9,600
South Malta/Gozo: Minimum annual rent of €8,750
Contract must specify if property is furnished and include any separate agreements regarding furnishings and value

Then:

Administrative fees of €6000

Quality of Life and Tax Benefits

Malta offers an exceptional quality of life with 300+ days of sunshine and an average temperature of 23°C. The country provides significant tax advantages, including no property tax, no wealth tax, and no inheritance tax between family members. The widespread use of English and Mediterranean lifestyle add to its appeal for international investors.

Investment Outlook 2025

The market shows strong fundamentals with economic growth projected at 4.6% and low unemployment at 3.2%. The tourism sector continues to grow, supporting property values particularly in popular coastal areas. However, investors should consider certain challenges, including premium area price pressure and strict rental regulations.

Conclusion

Malta's real estate market in 2025 continues to offer compelling investment opportunities across different market segments. While premium areas like Sliema and St. Julian's command higher prices, emerging areas such as Gzira and Marsaskala present attractive alternatives with strong growth potential. The combination of favorable tax conditions, robust economic growth, and high quality of life maintains Malta's position as a premier Mediterranean investment destination.

Success in this market requires careful consideration of location, intended use, and regulatory requirements. Despite certain challenges, Malta's real estate market continues to demonstrate resilience and growth potential, supported by strong economic fundamentals and increasing international interest.