by admin 
Malta, an Island just south of Sicily has always seen a rise in property prices. Records taken from the official NSO estimates show a steady rise in the price of property in Malta from 1980 to 2023. As an island with limited space, Malta has always had a unique challenge when it comes to housing its residents.
Since 1980, that is, in the last 43 years, the price of property in Malta has increased by over 10 times in value. This means that the average percentage rise of property prices in Malta is almost 7% per year! Surely one of the most profitable long term investments around!
What drives the price of property in malta up?
One of the primary drivers of the rise in the price of property in Malta is the country’s strong economy. Over the past few decades, Malta has experienced a significant economic growth, with a booming tourism industry, a thriving financial services sector, and a growing tech industry. This economic growth has led to a surge in demand for housing, as more and more people flock to Malta to take advantage of the country’s opportunities.
Another factor driving the rise in property prices in Malta is the country’s limited space. With a total land area of just 316 square kilometers, Malta is one of the smallest countries in the world. This limited space means that there is a finite amount of land available for development, and as demand for housing grows, the price of land and property inevitably rises.
Additionally, Malta’s status as a European Union member state has also contributed to the rise in property prices. The country’s stable political environment, no property or council taxes, and favorable investment climate have made it an attractive destination for foreign investors looking to purchase property. This increased demand from foreign buyers has further driven up the prices of properties in Malta.
The healthy rental market in Malta has also played a significant role in driving up the price and demand for apartments as a rental investment.
Many investors have identified this trend and have sought to invest in properties, mainly apartments that can generate consistent rental income. The steady rental income stream from apartments has made them an attractive investment option for both local and foreign investors.
While this trend may present a challenge for locals looking to purchase their own homes, it has created opportunities for investors to generate rental income and earn attractive returns on their investments.
CHECK OUT THIS HOUSE PRICE INDEX CALCULATOR TO ESTIMATE THE VALUE OF YOUR PROPERTY OVER THE YEARS.
CALCULATE HOW YOUR PROPERTY VALUE HAS INCREASED OR EVEN HOW MUCH MONEY YOU COULD HAVE SAVED HAD YOU BOUGHT YOUR PROPERTY YEARS EARLIER!
The rise in value of property in Malta
1980 – 1990: The period between 1980 and 1990 was a challenging time for Malta politically, and this had an impact on the country’s property market. The price of property in Malta remained stable with no significant increases,
1991 – 2000: The period between 1991 and 2000 was a transformative decade for Malta’s property market. Following a change in government and a renewed focus on infrastructure development, the country experienced a surge in property values, with prices doubling in value.
2001 – 2007: The period from 2001 to 2007 was a significant time for Malta, as the country was preparing and then became a member of the European Union. This accession had a positive impact on the country’s economy and also had a ripple effect on the property market, with a surge in property prices in Malta.
2008 – 2012: The period between 2008 and 2012 was a difficult time for Malta, as it coincided with the global financial crisis. In addition, Malta was also experiencing political discontent during this period. The government at the time was facing increasing opposition and calls for change were evident. These two events had a significant impact on the country’s economy and the property market, with the price of property in Malta dropping slightly as a result.
2013 -2023: The period from 2013 to 2023 was marked by a change in government in Malta, with a renewed focus on infrastructure development and construction. This led to a surge in demand for property, as the country saw a heavy increase in population due to over 100,000 immigrants entering the country to work.
This investment in construction helped to meet the growing demand for housing, but still led to a sharp rise in property prices. Over the period of 2013 to 2023, property prices in Malta doubled in value, driven by a combination of increased demand and limited supply.
