The Planning Authority approved permits for 9,112 units in 2017, a 45 percent increase over the 6,254 approved a year before and more than twice the number of permits approved in 2015.
A study published on Wednesday estimated that 3,500 more rental units could be needed in 2018.
A KPMG study commissioned by the Malta Developers Association had last October concluded that although there was no substantive evidence of a housing bubble, there are signs of overheating, particularly in the rental market.
The estimated resident population for Malta and Gozo at the end of 2016 stood at 440,433, a total of 35,000 more than a decade before, according to the National Statistics Office.
Between January and December 2017, the board assessed 75 development applications, of which 68 were approved – around 90 per cent – and just seven were rejected.
Read: How is your Planning Authority voting?