The average age for joining the property ladder in Malta is 30 and most first-time buyers purchase an apartment, spending between €150,000 and €250,000, new figures suggest.

Details of the profile of those purchasing a home for the first time have emerged from the preliminary analysis of some 2,600 people who successfully applied for a €1,000-a-year 10-year grant scheme promised in the budget.

Some 70 per cent of applicants purchased an apartment as their first dwelling and more than half bought a property priced between €150,000 and €250,000. 

The data was provided by Housing Authority CEO Matthew Zerafa.

“For the first time, we have data so that we can better understand the housing market and our first-time buyers," he said.

Earlier this year, all first-time buyers who bought a property from 1 January 2022 and obtained a loan for the purchase had up until last month to apply to receive €1,000 every year for 10 years. The first grant payments will be issued on Thursday.

Speaking during a news conference on Wednesday, Zerafa said that apart from the scheme being a success, it also provides the authority with new data to understand the profile of a Maltese first-time buyer. 

In four months, the authority received over 2,825 applications for the grant.  Of those, some 2,600 will begin to receive their first grant on Thursday.

Where are first-time buyers moving to? 

According to the data, the majority of first-time buyers purchased a property in St. Paul’s Bay, Żurrieq, and Birkirkara. 

St. Paul’s Bay is also a popular locality to rent, and according to census data, the town has doubled in size over the past decade, becoming Malta’s most populated town with just over 32,000 inhabitants. 

Mosta, Żabbar, Żebbuġ. Qormi, Żejtun, Marsascala and Mellieħa are also popular localities for first-time buyers. 

Zerafa said while St. Paul’s Bay is also a popular area for letting, the rest of the data shows that first-time buyers purchase a home in different areas than those who rent. 

The data also revealed that over 50 percent of those who applied for the scheme purchased a property on their own. 

The figures also revealed that the average Maltese first-time buyer is 30 years old.

“This data is consistent with previous studies we have seen in the past that show Maltese people leaving their parents’ home at an older age,” Zerafa said. “This is not just something we see in Malta, but reflects an overall Mediterranean trend.”

Zerafa added that a detailed report on the trends and data of first-time buyers will be published at a later stage this year. 

Housing Minister Roderick Galdes on Wednesday. Photo: Jonathan Borg

Speaking during the conference, Housing Minister Roderick Galdes said the government will invest €26 million on this scheme in the next ten years. 

He said the authority is committed to not just providing more social housing for the most vulnerable in society, but also ensuring that homeowners are supported. 

Correction, June 21, 2023: An earlier version of this article erroneously said that €2.6 million were being invested.