Conventional wisdom suggests that searching for a home during the Autumn and Winter months may not be the most favorable time. Many potential buyers find themselves caught up in the demands of their children’s schooling, work commitments, or the hustle and bustle of preparing for the festive season.

From a seller’s standpoint, any property viewings during this period are likely to come from the more dedicated and committed buyers. On the flip side, prospective homebuyers should consider that, given the market slowdown during these months, the inventory of available properties tends to be more extensive. Houses tend to linger on the market for a more extended period, potentially giving buyers an advantageous position when negotiating the final price. Recognizing the reduced demand for sellers may lead them to be more flexible in considering offers. Even when a property is newly listed, the competition is generally less intense during the off-season.

Here are the fluctuations in real estate prices based on property types during the year leading up to Q2 2023:

Apartment prices demonstrated a notable 9.3% year-on-year increase on average. Adjusted for inflation, prices showed a more moderate rise of 3.0%.

Maisonette prices exhibited a robust growth of 13.5% year-on-year in Q2 2023. When accounting for inflation, prices actually rose by 6.9%.

Terraced house prices experienced a decline of 3.7% (or -9.3% when adjusted for inflation).

The category labeled as “Other houses,” including townhouses, houses of character, and villas, saw an average price increase of 5.6%. However, there was a slight decrease of 0.6% when adjusted for inflation.

Before the onset of the COVID-19 pandemic, property prices in Malta had been on an annual ascent, with a cumulative growth of 75% (or 62% when adjusted for inflation) from 2012 to 2019.

Following a 2.4% decline (or -2.58% inflation-adjusted) in 2020 due to reduced demand caused by pandemic-related restrictions, property prices in Malta rebounded in subsequent years. They rose by 6.94% (4.73% inflation-adjusted) in 2021 and showed a more modest increase of 2.71% (-4.26% inflation-adjusted) in 2022.

In the first quarter of 2023, property prices in Malta, as indicated by the Property Price Index, increased by 6.6% compared to the corresponding period last year, according to the National Statistics Office.

However, the growth was slightly more subdued than the previous year, with the index recording a growth of 6.8% during the same period in 2022.

This year, the rise over the past year was predominantly influenced by developments in the Apartments Price Index, which reached 148.97, reflecting an annual increase of 6.8%.

In the preceding year, the upswing was primarily attributed to changes in the Maisonettes Price Index, which stood at 135.95. This was followed by the Apartments Price Index, which registered at 139.44.

The PPI tracks the price changes of purchased residential properties and is compiled on a quarterly basis, focusing solely on apartments, maisonettes, and terraced houses.

Optimal Maltese cities for both residence and investment encompass San Gwann, Il Mensijia, Ibragg, Swieqi, Kaparra, Pembroke, Ta’Xbiex, Sliema, Naxxar, Gharghur, High Ridge, St. Julian’s, and Gzira. These locales transcend mere living spaces, providing an ambiance reminiscent of a perpetual vacation, allowing you to indulge in the lifestyle you’ve envisioned.

Renowned for their diverse culinary offerings, encompassing upscale restaurants to vibrant street food scenes, these cities boast popular nightclubs, bustling shopping districts, and picturesque views, creating an immersive and vibrant living experience.

Experts predict that Malta’s property market will remain robust throughout 2024, with demand continuing to outstrip supply. While certain factors might slow the pace of price increases, Malta has consistently outperformed many other EU real estate markets, often exceeding expectations.

Deciding whether to buy or rent in Malta requires a thorough understanding of your current financial situation, lifestyle preferences, and long-term goals. For young people seeking flexibility, renting might be a better option. Conversely, buying is ideal for those who prioritize security and long-term investment. As the market evolves, it’s crucial to make informed, personalized choices that align with your changing financial and living circumstances.

1. Check with a local bank about financing.
2. Find a property in Malta.
3. Locate a notary in Malta.
4. Prepare the Promise of Sale Agreement.
5. Consider notarial expenses.
6. Sign the Promise of Sale.
7. Receive loan confirmation and sanction letter from the bank.
8. Congratulations!
Learn more about this topic in detail on our blog page.
https://openhouse.com.mt/22259

According to data from the Maltese Statistical Office for 2022, the average cost of an apartment or house in Malta is €227,000. The average property price per square meter is €3,000, with prices typically ranging between €1,500 and €5,500, depending on the area.

In the first quarter of 2023, property prices in Malta, as indicated by the Property Price Index, increased by 6.6% compared to the corresponding period last year, according to the National Statistics Office.

However, the growth was slightly more subdued than the previous year, with the index recording a growth of 6.8% during the same period in 2022.

This year, the rise over the past year was predominantly influenced by developments in the Apartments Price Index, which reached 148.97, reflecting an annual increase of 6.8%.

In the preceding year, the upswing was primarily attributed to changes in the Maisonettes Price Index, which stood at 135.95. This was followed by the Apartments Price Index, which registered at 139.44.

The PPI tracks the price changes of purchased residential properties and is compiled on a quarterly basis, focusing solely on apartments, maisonettes, and terraced houses.

The average salary in Malta ranges from €1500 to €2000 per month. Additionally, a family of four typically requires around €2700 per month to cover living expenses (excluding rent). While you might find cheaper living costs in some Eastern European countries, these locations may not offer the same benefits and advantages as Malta.

Changes in Real Estate Prices by Property Type in the Year to Q2 2023

Apartment Prices: Increased by 9.3% year-over-year. Adjusted for inflation, the rise was a modest 3.0%.
Maisonette Prices: Saw a strong increase of 13.5% year-over-year. When adjusted for inflation, the increase was 6.9%.
Terraced House Prices: Decreased by 3.7% year-over-year, which translates to a 9.3% drop when adjusted for inflation.
Other Houses (including townhouses, houses of character, and villas): Experienced an average price increase of 5.6%, but saw a slight decline of 0.6% when adjusted for inflation.

Historical Context

Before the COVID-19 pandemic, property prices in Malta were on a steady rise, with a cumulative growth of 75% (62% inflation-adjusted) from 2012 to 2019.

In 2020, property prices fell by 2.4% (2.58% inflation-adjusted) due to decreased demand from pandemic-related restrictions. However, prices rebounded in subsequent years, increasing by 6.94% (4.73% inflation-adjusted) in 2021 and by a more modest 2.71% (a decrease of 4.26% when adjusted for inflation) in 2022.

Marketing can enhance your development’s reputation by showcasing its best features and unique qualities. This differentiation can help your development stand out from the competition and attract more buyers.