As of February 2025, Malta’s property market continues to exhibit dynamic trends influenced by economic growth, government policies, and evolving buyer preferences. Here’s an updated overview:

Market Growth and Economic Outlook:

• Steady Appreciation: Property prices in Malta have experienced an average annual growth rate of 5% to 7%, reflecting the market’s resilience and attractiveness to investors.
• Economic Projections: Malta’s economy is projected to grow by 4.9% in 2024 and 4.3% in 2025, bolstering confidence in the real estate sector.

Government Initiatives and Incentives:

• Budget 2025 Measures: The Maltese government has introduced and extended several schemes to stimulate the property market:
  • First-Time Buyer Grants: A €10,000 grant spread over 10 years for first-time buyers purchasing properties up to €500,000.
  • Urban Conservation Area (UCA) Incentives: Grants of €15,000 for properties in Malta and €40,000 for those in Gozo, targeting purchases of properties over 20 years old or vacant for more than seven years.
  • Stamp Duty Reductions: Reduced stamp duty on the first €200,000 of property value for both first-time and second-time buyers, applicable to primary residences.
  • VAT Refunds: Up to €54,000 on the first €300,000 spent on qualifying property refurbishments, promoting the preservation of historic architecture and sustainable investments.

Sustainability and Technological Integration:

• Green Building Initiatives: There’s a growing emphasis on energy-efficient renovations, with new initiatives making such improvements more accessible, particularly for low-income homeowners.
• Smart Home Technologies: The adoption of smart home features is on the rise, enhancing convenience and security for residents.

Investment Opportunities:

• Rental Market: High demand for rental properties persists, driven by tourism and a growing expatriate community. Prime areas like Sliema and St. Julian’s continue to offer attractive rental yields.
• Special Designated Areas (SDAs): Investors can purchase multiple properties without the need for an Acquisition of Immovable Property (AIP) permit in SDAs, with the added benefit of being able to rent them out.

Considerations for Buyers:

• Transaction Costs: Buyers should anticipate additional costs ranging from 8% to 15% of the property’s purchase price, covering taxes and fees.
• Financing: Mortgage interest rates in Malta have remained relatively low and stable, averaging between 2.5% and 3% in recent years.

For the most accurate and up-to-date information, it’s advisable to consult local real estate agents or financial advisors familiar with Malta’s property market dynamics.

Affordable Property for Sale in Malta

Looking for budget-friendly real estate in Malta? Whether you’re a first-time buyer, investor, or searching for a holiday home, Malta offers a range of affordable properties, from cosy apartments to traditional townhouses.

What to Expect:

• Apartments & Maisonettes – Compact yet stylish options starting from €100,000 in areas like Birkirkara, Qawra, and Mosta.
• Townhouses & Village Homes – Character-filled properties in historical villages, often requiring minor renovations, from €150,000.
• Gozo Properties – More affordable alternatives with stunning countryside or sea views, starting from €80,000.

Why Buy in Malta?

✔ No annual property tax
✔ Stable and growing property market
✔ Residency & investment opportunities
✔ English-speaking community

For the most accurate and up-to-date information on Malta’s property market, we invite you to send us your request. Our experienced Estate Consultants are ready to assist you with expert advice and tailored guidance to help you find the perfect property. Contact us today!