Malta

Malta’s housing market in mid-2025 shows robust growth, with residential property sales rising 11.6% year-on-year in May 2025 and the total value of transactions reaching €321.6 million. Most buyers are individuals, accounting for 90% of final deeds. Location significantly affects prices: the national average price per square meter to buy a residential property is around €3,000–€3,300, with premium areas like Sliema exceeding €4,000 per square meter, while southern regions and Gozo offer prices between €1,500 and €2,500 per square meter. Rental yields remain low at about 3.7–4% in most locations. Home ownership in Malta is high compared to much of Europe. The owner-occupancy rate was 74.7% in 2023, down from 82.6% in 2022 but still above the EU-27 average of 69.2%. This means roughly 75% of Maltese live in owned homes, with about 25% renting. Foreign workers dominate the rental market, with over 90% of tenants being non-Maltese. Publicly owned housing—primarily social housing managed by the Housing Authority—plays a vital role, providing affordable and safe accommodation for low-income families, the elderly, and people with disabilities. Social housing is available to those meeting strict income and asset thresholds and is targeted at EU citizens or long-term residents. The private rental market is much larger in absolute numbers, but only about 10% of rental properties operate at market prices; most rentals are in the subsidized or social sector. Public housing and social housing are closely linked: in Malta, public housing is largely synonymous with social housing, focusing on affordability and support for vulnerable groups. In Maltese, public housing is referred to as “akkomodazzjoni pubbliċi,” while social housing is “akkomodazzjoni soċjali”—terms often used interchangeably in local policy.

Malta is facing a significant housing crisis, marked by rising property prices and rents that have become unaffordable for many residents. Over the past decade, property values have more than doubled, with a notable increase of 11.4% between 2023 and 2024. Rental prices have also surged by 71% over the same period, significantly impacting low and middle-income families. The average price for a two-bedroom apartment in urban areas is approximately €250,000, while larger properties in prime locations can exceed €500,000. This crisis particularly affects young professionals and low-income families, with about 30% of households spending more than 40% of their disposable income on housing costs. Factors contributing to the crisis include rapid population growth, limited land availability, increased demand for short-term rentals, and speculation in the property market. The rental market is dominated by foreign workers, exacerbating the affordability issue for local residents.

The Government of Malta, addressing the pressing need for affordable and sustainable housing, has implemented a series of targeted policies and programs. The 2025 budget reaffirms property incentives for first-time buyers (including a €10,000 grant spread over ten years for purchase of homes up to €500,000) and continues existing schemes for buyers and landlords, particularly in Urban Conservation Areas, without introducing new incentives. A significant VAT refund of up to €54,000 is available for renovation of older properties meeting specific criteria. To boost affordability, the government has expanded support under the Rent Benefit scheme, increasing income thresholds and offering up to €6,000 per year for eligible families. Large-scale social and affordable housing projects are underway, including a €40 million investment in a 267-unit development in Ħal Farruġ and a broader program by Malita Investments to deliver 752 apartments by 2026 across ten locations, prioritizing low- to middle-income families and sustainable living. Sustainability is now central to Malta’s housing policy, with financial grants (ranging from €4,500 to €9,000 over three years) for home purchases meeting defined environmental criteria through the “Ixtri Proprjetà Sostenibbli” Scheme. These initiatives aim to balance robust market growth with long-term housing security and environmental responsibility. **Summary in Maltese:** Il-Gvern ta’ Malta qed jindirizza n-nuqqas ta’ akkomodazzjoni bi prezz abbordabbli u sostenibbli permezz ta’ politika li tkompli timmanigura b’sħiħ is-sussidji u d-donazzjonijiet għal xtur tal-ewwel darba, kif ukoll inċentivi għal ripristini ta’ proprjetajiet antiki. Il-lista tal-benefiċċji tal-kera ġiet estiża, u proġetti ta’ akkomodazzjoni soċjali qed jitlestew, b’tħabbil ta’ miljuni ta’ ewro fil-grupp ta’ appartamenti ġodda. Il-politika saret ukoll aktar sostenibbli b’donazzjonijiet għal dawk li jixtru propjetajiet bl-istandards tal-enerġija mtejba.

In Malta, housing cooperatives are still in their infancy, with only a handful of small-scale initiatives. The concept of cooperative housing is not well-developed, and there is a lack of specific legal frameworks to support their growth. Despite this, the idea of housing cooperatives is gaining attention as a potential solution to Malta's housing affordability crisis. The government has expressed interest in exploring cooperative housing as part of its broader efforts to address housing affordability. However, there are no specific programs dedicated to supporting housing cooperatives. The Malta Cooperative Federation has proposed establishing housing cooperatives to provide affordable, community-managed housing, emphasizing their potential for social cohesion and long-term stability. Currently, there are no clear numbers on the share of cooperative housing in all housing units in Malta. However, social housing, which is a related sector, accounts for less than 3% of the total housing stock. The government's focus remains on public and social housing initiatives, with large-scale projects underway to provide affordable options for low- to middle-income families.

Key individuals and organizations in Malta actively voicing their commitment to address the housing crisis and build more affordable, sustainable housing include several public and private sector leaders, NGOs, and academic and industry partners. Jennifer Falzon, Chief Executive of Malita Investments, is a notable figure, leading large-scale affordable housing developments targeting low- and middle-income residents. Malita’s projects, financed with substantial support from the European Investment Bank, are a major force in the national affordable housing effort. The Housing Authority is central in policy and project implementation, working closely with third-sector organizations such as the Foundation for Affordable Housing. This Foundation, a partnership between the Maltese government and the Archdiocese of Malta, serves those ineligible for social housing but unable to afford market prices, and is structured as a social enterprise for long-term impact. Several NGOs play a key role in specialized housing, including SOS Malta (supporting vulnerable and excluded groups), Richmond Foundation (mental health), Malta Gay Rights Movement (LGBTIQ housing insecurity), and Mid-Dlam Għad-Dawl Foundation (reintegration of ex-prisoners). Potential good collaboration partners from academia would include the Kamra tal-Periti (Chamber of Architects) for design innovation competitions, and from the real estate sector, Malita Investments and the Foundation for Affordable Housing. SOS Malta and Richmond Foundation are leading NGOs, while innovation-driven startups or social enterprises focused on sustainable building or co-living models could also offer valuable partnership for future projects.