Property in Malta is consistently in the news – and reflects the general direction of the economy. The latest related data published by the National Statistics Office last May shows that in April, property sales were down by almost a fifth, compared to April 2022 – however, promise of sale agreements were up by four per cent. The data also shows that monthly sales showed a drop compared to 2022 – however, the value of deeds in April amounted to €260.6 million – which translates into a 9.4 per cent increase when compared to last year. 

A fact-check published in April showed that while last March yielded the lowest return in property sales since the coronavirus-hit month of March 2020, the first quarter of 2023 shows that the overall value of properties sold has experienced an increase over previous years, reaching almost €790 million this year – which is the highest figure recorded in the last six years. 

Beyond the statistics, property in Malta remains a largely profitable investment. This is due to a number of factors, including, but not limited to, the high rate of property ownership – most individuals and couples in Malta prefer to buy, rather than rent, while businesses consider owning a commercial property as an investment. There is also the fact that property in Malta appreciates in value year-on-year. 

“The property sector in Malta was, for a short time span, affected negatively by the coronavirus pandemic, particularly in the rental arena as foreign labour intensive operators, especially in the tourism sector, started laying off workers,” says Charles Cini, Chief Operating Officer, Agora Estates.

“During the pandemic years, expatriates left the island or saw their income diminish – and this resulted in landlords reducing their rent to retain tenants and others who just left their properties vacant.

Charles Cini, Chief Operating Officer, Agora Estates.

“On the commercial side, work from home practices led to tenants relinquishing or reducing rented out office areas. In fact, statistics from 2020 indicate that in the first six months of that year, rental prices were 10 per cent lower than the prices charged in the first half of 2019. Certain areas were affected more than others with reductions of up to 30 per cent registered. Property sales also initially registered a dip as uncertainty prevailed, especially with regard to employment, which however was surpassed as Government incentives to sustain industries and operators kicked in.”

However, Cini says that in the post-pandemic recovery, the property market is experiencing stability and, in some areas, growth. 

“I believe that we are on our way to recovery, not just in the property market, but in most sectors, especially tourism as people have started to enjoy travelling again.”

Indeed, figures published last March showed that the tourism sector is experiencing growth. Last January, 125,000 tourists holidayed in Malta – compared to 127,723 in January, 2019. Despite the slight decrease, the tourists who visited last January spent a total of €99.1 million, compared to €84.7 million spent in January, 2019.

“NSO figures indicate volume of deeds in 2022 amounted to 14,305 (2021: 14,368) but with an increase in value of circa €3.25bn in 2022 when compared to 2021,” says Cini.

“The rental market has stabilised itself again as foreign workers continue to increase – the latest census shows that 20 per cent of the population is non-Maltese – and companies have shifted to a hybrid model that combines working from the office and remote working. In recent months we have also seen a greater move towards a higher percentage of working form the office as employers have seen increased productivity and better working practices in this manner.

“Property sales are also starting to recover as deeds which are being concluded now largely reflect promise of sales done during the pandemic months. Figures released earlier this month by the NSO show that final deeds of sale relating to residential property amounted to 918 during April 2023, a decrease of 204 deeds when compared to those registered a year earlier. 

“However, during April 2023, 1,061 promise-of-sale agreements relating to residential property were registered, an increase of 45 agreements over the same period last year, which indicates a step forward in the recovery process.”