MALTA’S PROPERTY PRICE INFERNO

By Economist

Both major political parties paint a picture of hope in their electoral manifestos. Labour and the Nationalist Party promise more homes, better affordability, and brighter futures for Maltese families. Yet sensible Maltese know the reality is grim.

Apartment prices rose 10 per cent in the past year. The average asking price now stands at €414,621. Median prices climbed from €285,000 to €317,000. A young couple on minimum wage can afford just 2.2 per cent of properties on the market. This marks a sharp drop from 5.7 per cent a year earlier. 

The price-to-income ratio has reached 14.5. This means homes cost more than 14 times average annual earnings. Prices continue to outpace wages. In late 2025, property prices rose by around 6 per cent year-on-year. Demand remains strong despite new construction. 

Homeownership rates have fallen. They dropped to 68.1 per cent in 2024, down from over 80 per cent in recent years. This figure now sits below the EU average. Many Maltese families feel priced out. 

Rents tell a similar story. Median rents for two-bedroom apartments often exceed €1,200 per month. Over 70,000 rental contracts were registered by mid-2025. Many tenants spend more than 30 per cent of income on housing. A new study found most private renters are financially overburdened. 

Yet Malta has a high vacancy rate. Around 18 per cent of dwellings stand empty. This is one of the highest in Europe. Some experts blame second homes, inheritance disputes and overpriced listings. Others point to mismatched supply. 

Population growth adds strain. Immigration and tourism have boosted demand in this densely populated island nation. New permits reached over 8,700 units in 2024. But much of this stock targets higher-end buyers. 

Surveys show housing tops public concerns, especially for the young. As Malta prepares future budgets, pressure mounts for wage reforms and price controls. Without swift measures, the dream of owning a home may slip further from reach for ordinary Maltese. 

Despite glossy manifestos from both parties, prices keep climbing, rents devour incomes, and young families remain locked out. New builds rise, yet they serve investors, not locals. Empty flats gather dust while lists for social housing grow longer.