Property sale prices in Malta remain a challenge for average salary earners.

January 28 07:33 2023

Buying a property in Malta is becoming highly unaffordable for most people on average salaries, despite the otherwise decently high standard of living. Looking at popular property sales sites in Malta like, one can easily see that the property available on the market is much higher than in previous years. 

Over the years, property value has always managed to increase year on year. Even during recessions, as a worst-case scenario, property prices increase at lower rates or maintain current values but do not generally go down. 

Based on yearly numbers from, the first quarter of 2022 saw the Property Price Index stand at 139.52. This is a rise of 6.7 % when one compares it to the first quarter of 2021. In 2021, during quarter 1, the Property Price Index stood at 130.92, which was also a steep rise of 4.7 % over the corresponding 2020 quarter.

According to local studies carried out recently, Maltese economists have outlined that with average wages in the vicinity of €1,600 per month and considering loan requirements from the local banks, most people cannot afford to buy properties higher than the €96,000 mark. With the average 2-bedroom apartment starting from just under €200,000, such a purchase is a considerable challenge.

Couples and individuals can rent a property (apartments in most cases) for just under €1,000 a month but buying their own real estate is something else entirely.

The solutions that property buyers are opting for are, therefore, joint loans through cohabitation, counting on inheritance or relocating and finding property for sale in Gozo, where the property is significantly cheaper.

The Maltese property market is in constant demand due to the large population of the island and the consistent stream of ex-pats and investors looking to grab a piece of the cake or live there for the long term.

Building a property is now also more complex. Due to significant shifts in the status quo, such as the recent epidemic and conflicts in Europe, prices for raw materials used in construction have pushed the costs of new apartments cost prices by up to 30 to 40%. Many new couples in Malta have been using land already owned by their families to turn it into new apartments, using one of them as their personal property and then renting out or selling the rest of the units. This has also become harder for these reasons.

Sale property prices vary based on location. 

The central areas of Valletta, Sliema, St. Julian’s, and the three cities of Vittoriosa, Cospicua, and Senglea are generally the most expensive areas to buy property in Malta. They are very popular areas with foreigners and offer a number and variety of amenities, including restaurants, shops, and easy access to the sea. On the other hand, the most affordable areas are located on the island’s outskirts. Places like Bugibba, Qawra, Zabbar, Birkirkara, and Mosta, among others. These locations are usually more residential and offer more space at lower prices than the more central areas.

Gozo is also considered to be significantly less expensive than Malta for property purchases. This is due to the island’s smaller population and less developed infrastructure. Additionally, Gozo’s more rural nature and slower lifestyle may make it less appealing to some buyers, which can also help keep prices lower. However, it’s important to note that property prices can vary greatly depending on the location and condition of the property, so it’s essential to research the specific area of interest before making a purchase.

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