In recent years, Malta has emerged as one of Europe’s premier destinations for property investment. In fact, while the rest of the world prepares for a global cooling down, southern Europe’s property market is set to show remarkable resilience.

This places Malta’s prime property market at the forefront, as the island boasts a diverse selection of luxury real estate available for sale or rent. From historic palazzos and charming townhouses to designer bungalows and unique apartments, these properties are highly sought after by both locals aiming to elevate their living standards as well as foreign nationals eager to embrace the coveted Mediterranean lifestyle.

It is no wonder that investing in luxury real estate in Malta promises substantial benefits. While some properties may initially seem overpriced, those familiar with the luxury market understand that certain undeniable factors drive property values. There are various aspects to consider when evaluating a property, with location as the single most crucial driving force, followed by the property’s ‘curb appeal’ or condition, unique selling points, size, and, of course, the potential return on investment, which, for many buyers, is the deciding factor when making purchases.

The location of a property plays a crucial role in its desirability and is often directly tied to a buyer’s potential return on investment.

Prestigious areas like Sliema, St Julian’s and Valletta are exceptionally popular in Malta, and real estate in these areas is highly sought after and tends to increase in value over time. These locations are central and vibrant and provide easy access to amenities, dining, entertainment, and the sea. A luxury apartment in Sliema, with panoramic Mediterranean views and proximity to luxury shops and restaurants, will command a significantly higher price than a similar property further inland.

Curb appeal refers to the general aesthetics of the property when viewed from the outside, and every aspect of your home’s exterior defines this. Similarly, quality of interior finishes and the range of amenities available in a property, like private pools and smart home systems are crucial determinants of value.

High-end properties often feature top-of-the-line finishes, state-of-the-art appliances, and luxurious fittings, so well-maintained homes with updated features and modern amenities are more attractive to buyers and frequently sell at a premium.

Malta enjoys a rich history and culture, which are prominent in many of the preserved historical structures across the island. These properties with distinct architectural, historical, or aesthetic features naturally command higher prices.

A meticulously restored 17th-century palazzo in Valletta or a 400-year-old house of character in Xagħra, spanning 3,000 sqm, are considered a rare gem, and their price reflects their uniqueness.

More modern properties can reach similar price tags. For example, an apartment occupying an entire floor of a luxury project designed by an internationally renowned architect, offering a 270° view of the island, stands out as incomparable to anything else available.

Simultaneously, in Malta’s real estate market, views are a highly prized attribute.

Properties with stunning sea views, especially those with unobstructed vistas of the coastline or the picturesque Grand Harbour, are in high demand. A seafront apartment in St Julian’s offering uninterrupted views of Spinola Bay is a prime example of a property whose value is significantly enhanced by its visual appeal. Similarly, country views will appeal to those who want more tranquil surroundings.

The average property size in Malta is between 90 and 150 sqm, but this varies. High-end properties typically enjoy a larger footprint with open-plan layouts that enjoy bright and airy living areas.

Larger properties with spacious rooms, extensive grounds, and ample amenities that offer outdoor spaces like gardens, patios, or private pools and even private cinemas and saunas are priced higher and will easily appeal to affluent buyers.

Return on investment (ROI) is front of mind when evaluating property value in Malta. Investing in real estate has long been considered a reliable strategy for building wealth, and this is especially true in a country like Malta, which has historically enjoyed a stable property market and year-on-year growth.

Properties in areas with high rental demand, especially those popular with tourists and expatriates, offer lucrative rental yields. An apartment in a cosmopolitan city like St Julian’s or Sliema, close to business hubs and entertainment areas, can provide a steady rental income, making it an attractive investment option.

The ROI can also be significantly high not only through letting but also through re-selling. The percentage increase in the selling price of certain properties, especially of those found within Special Development Areas (SDAs), is considerably higher than the increase in value for any other real estate.

A notable example is the Tigné Point development in Sliema. Properties here boast unique designs, prime seafront locations, spacious layouts, high-end finishes and access to a range of amenities.

As a result, Tigné Point properties command some of the highest prices in Malta, with apartments often exceeding the million-euro mark.

It is clear that many contributing aspects play a role in accurately evaluating your property in Malta. While the task may seem daunting, working with a reputable and professional agency is key to listing your property on the market or purchasing an ideal property investment at the right price.

Benji Psaila is head of sales and letting at Malta Sotheby’s International Realty.