The number of property rental contracts in Malta increased by almost a quarter in one year, according to a recent report issued by the Housing Authority.
By the end of June, there were almost 55,000 active rental agreements, an increase of 24% from the year before, the report says.
Around two-thirds (68%) of contracts started either last year or this year, with just less than one-third (30%) beginning over 2020 and 2021. Only a fraction (two per cent) of registered contracts started before 2020.
And while the price of rent went up by an average of 5.5% in the first half of this year when compared to the second half of last year, this was less than the six months before when prices rose by 6.9%, the report noted.
Covering January to June, the report was the first of the Housing Authority’s bi-annual reports, a move it called a “strategic step” to provide renters and landlords with the most up-to-date information.
Long-term leases on the rise
The report shows that as of June, the overwhelming majority of contracts were long-term leases, representing 92% of the total, with their number having continued to increase over the last three years.
"Most notably, the number of tenancies with a duration longer than three years has increased to 12% in June 2023,” it said.
“The significance of longer tenancy durations cannot be overstated, particularly when considering the positive effects these bring in terms of stability and peace of mind for families and landlords alike,” the report says.
Short-term leases were far less common, accounting for just 0.5% of the total, while shared space agreements – covering the rent of a separate space in a property with shared common areas – represented 7.5% of the total.
Around two-thirds of such contracts cost between €100 and €299 per month, with the majority priced between just €100 and €199. These were found most often in St Paul’s Bay, Birkirkara, Ħamrun, Msida, Qormi and Sliema.
Where are people renting?
St Paul’s Bay was the most popular area for rentals, accounting for around 15% (8,200) of the total nationwide. There, the median price for a two-bedroom and three-bedroom apartment stood at €700 and €850 monthly, respectively.
Fourteen other localities also proved especially popular, with Sliema, Msida, Gżira, St Julian’s, Marsascala, Birkirkara, Swieqi, Mellieħa, San Ġwann, Mosta, Ħamrun, Naxxar, Birżebbuġa and Pietà all having over 1,000 active rental contracts.
The areas with the least number of rental contracts were Santa Luċija and Mdina, which each had less than twenty.
Low rate of renting in Gozo
Overall, renting in Gozo was far less common than in Malta, with only seven per cent of contracts registered on the island. The most popular areas in Gozo were Żebbuġ (including Marsalforn), Victoria and Munxar.
The lower frequency of contracts in Gozo was also reflected in the price of rent on the island, with Xagħra, Xewkija and Ghajnsielem the three cheapest localities in the country for renting a three-bedroom apartment, all costing around €600.
Meanwhile, Munxar and Żebbuġ were the cheapest areas to rent a two-bedroom apartment, with Marsa the only Malta locality to feature at the bottom of the list.
Unsurprisingly, Sliema was the most expensive area to rent both two-bedroom and three-bedroom apartments across the country, with St Julian’s and Swieqi also featured in the top three on both lists.
To rent an apartment with two bedrooms in Sliema was priced at over €1,200 per month from the start of the year, while three-bedroom properties set renters back by €1,600, the report said.