Malta’s residential property market is showing strong momentum in 2025, supported by rising domestic demand, record tourist arrivals, and an influx of foreign workers. Residential construction activity is also picking up, while government initiatives continue to stimulate property purchases, creating a favourable environment for both local and foreign buyers.
According to the Central Bank of Malta, the nationwide property price index rose 6.88% in Q3 2025, building on a year-on-year increase of 5.19% in Q2 and 2.15% in Q1. Quarter-on-quarter, prices edged up 0.7%, marking the fourth consecutive quarter of price growth. Adjusted for inflation, property prices rose 4.39% over the same period.
Breaking down by property type, apartments recorded a 4.9% annual price rise in Q3, accelerating from previous quarters, while maisonettes increased 3.06%. However, terraced houses and “other houses” – including villas, townhouses, and houses of character – experienced price declines of 2.16% and 7.23%, respectively, in Q3 2025 compared to the previous year.
Malta’s property market has rebounded strongly from the pandemic. Prices had declined by 2.4% in 2020 due to COVID-19-related restrictions but recovered in the following years, rising by 6.94% in 2021, 2.71% in 2022, 7.54% in 2023, and 6.92% in 2024. Government schemes supporting first-time and second-time buyers, properties in Urban Conservation Areas and Gozo, and refund schemes for restoration expenses have underpinned this recovery. The resurgence in tourism and migrant worker inflows have also helped drive property demand.
Transaction volumes confirm the strong recovery. In 2024, residential property transactions rose 3.7% year-on-year to 12,598 units, with transaction value climbing 8.4% to €3.53 billion (US$4.14 billion). The first three quarters of 2025 continued the trend, with 9,788 units transacted – up 4.6% year-on-year – and total transaction value rising 13.4% to €2.89 billion (US$3.39 billion).
Regional variations in demand were evident. In Q1-Q3 2025, the Southern Harbour District saw transactions rise 4.7% to 1,523 units, Northern Harbour increased 5.3% to 2,825 units, and the South Eastern District surged 11.9% to 1,392 units. The Western District recorded a 14.7% increase, while Gozo and Comino saw a marginal rise of 0.2%. The Northern District was the only region with a decline, falling 3.1% to 1,797 transactions.
Malta continues to attract foreign buyers, though property ownership rules remain strict. Non-Maltese nationals are generally allowed to purchase only one property for owner-occupation unless located in specially designated areas such as Tigne Point, Portomaso, and Cottonera. Properties may be rented only in specific cases, such as licensed villas or those in designated zones.
The country also offers residency pathways for foreign investors. Following the European Court of Justice ruling in 2025, Malta discontinued citizenship-by-investment programs, focusing instead on merit-based naturalisation and the Malta Permanent Residence Programme (MPRP). Applicants must demonstrate qualifying assets of €500,000–€650,000 and meet property purchase or rental thresholds. The MPRP now includes a one-year renewable temporary residence permit, enabling applicants to reside in Malta while applications are assessed.
Residential construction activity is showing a strong resurgence. In 2024, approved dwelling permits rose 7.4% to 8,716 units, after declining 15.5% in 2023. Apartments, which make up 86.5% of permits, rose 7.4% to 7,543 units, while maisonettes increased 10% to 783 units. Terraced houses fell slightly by 3.1%, whereas other housing types surged 30.5% to 107 units.
Q3 2025 saw a remarkable surge in construction permits, jumping 110.3% to 3,668 units compared to 1,744 in Q3 2024. Growth was most pronounced in the Northern District (233.6%) and South Eastern District (210.6%), followed by Northern Harbour (78.9%), Southern Harbour (68.8%), Gozo and Comino (56.1%), and Western District (41.3%).
Malta’s economy underpins these housing trends. Real GDP growth rebounded to 13.3% in 2021, and continued with 4.3% in 2022, 6.8% in 2023, and 5.9% in 2024, offsetting the 3.4% contraction in 2020. Strong household consumption, export of services, and tourism recovery have driven this growth. In Q3 2025, the economy expanded 3% year-on-year, with forecasts by the European Commission and IMF expecting Malta’s growth to remain robust at 3.5–4% annually through 2027.
With rising demand, improving construction, strong government support, and stable economic growth, Malta’s residential property market looks set to remain resilient, offering opportunities for both domestic and international buyers despite regulatory and regional constraints.
