For many entrepreneurs and individuals relocating to Malta from abroad, the housing market in Malta is somewhat of a colloquial ‘black box’. There is very little information on the internet about how much apartments cost in Malta or how one should go about searching for his idyllic abode etc…
Therefore, I also receive very frequent inquiries from you about how the housing market is in Malta and what places I would recommend living in Malta.
Read here what motivated me to write this article
and what this article will be about.
The fact is that the rental market and process in Malta is quite different than that e.g. in Germany. In Germany, most tenants and buyers go to platforms like Immobilienscout and post such apartments that might interest you as a prospective buyer or lessee. Many landlords or property managers post their ads online. If the cover letter is convincing, they are summoned to an interview with 10 others – of course with appropriate proof of salary, SCHUFA information (creditworthiness information from Schufa Holding AG) and possibly even confirmation from insurance companies. Apartments in Germany are measured by the price per square meter and are usually settled in unfurnished. Tenants must take care of the interior and the kitchen themselves.
This is different in Malta – here everything is practically done through real estate agents. Conventionally, the lessee approaches a real estate agent of his/her choice, budgets, concerns and target areas are discussed and disseminated, and he/she will advise you and then show you a handful of apartments/houses.
If you like the apartment, you can sign the contract the same day and even move in. The planning horizon for a new apartment is therefore also so on average 2 weeks. In Malta, the apartments are usually fully furnished and are calculated according to the number of rooms.
Of course, there is much more to know about the Maltese real estate market. Therefore, I asked my trusted friend and real estate agent – Mark Molnar – to give you a comprehensive overview of the apartment and housing market in Malta.
Mark Molnar founded the real estate brokerage Let Buy Mark in 2017. Mark is not only one of the best property brokers around, but also has the vision, to reform the Real Estate market by commingling a combination of professionalism, together with a joyful work environment. ‘Let Buy Mark’ is a place where a collection of great minds are continuously working towards raising the standards of the Real Estate industry, by bringing their knowledge and expertise to create an even bigger story together, for the industry and for the next generation of property owners.
Things You Should know about Real Estate Market in Malta
A short summary about the real estate market in Malta and what you can expect from the real estate market.
With a strategic position into the Mediterranean Sea and its beautiful climate, Malta is the dream of many families and entrepreneurs who want to move their life and business there.
Properties in Malta can varies from beautiful 16th century classic style villas to ultra modern high standards architecture. The diversity of Real Estate in Malta is so rich that it is impossible not finding your perfect solution.
According to Let Buy Mark experience the most part of people want to live in Sliema and St Julian’s that also represent the main economical hub of Malta. A perfect combination of new residential developments, commercials, restaurants and office spaces creates a balanced work-life environment where the services reach the highest standards. According to PwC Market Research 2021 more than 40% of the interviewed people would like to live in apartments that represent the most appreciated real estate type with also villas.
The volatility and the complexity of a Real Estate market that constantly changes and improves in prices and standards require the consultation of an expert. Our Real Estate agents at Let Buy Mark see properties every single day to find the fittest solutions. Let Buy Mark experts can also give you a professional valuation of the Real Estate to guarantee the transparency that in a private negotiation you don’t have.
Where to Live In: Let Buy Mark Best Tips
Read in this chapter which is the best place to live in Malta.
Gzira is generally the first dwelling of many people that relocate to Malta because of its strategic position attached to Sliema. A vintage urban environment and easy-going restaurants are ideals for young generations and Gzira represent a very good balancing between quality and cost of living. The main residential offer consists in apartments but also penthouses, terraced houses and maisonette are lively appreciated. Fully furnished offices, restaurants and other commercials are ideal for the “first time in Malta“ startups and entrepreneurs.
Moving to the North of the main island, Mellieha is a pretty urban center surrounded by uncontaminated nature and sea. The ideal place for those how loves the silence and the countryside. Residential market offer is mainly based on beautiful family-tailored apartments, luxury houses of character and sea view villas. Mellieha is also famous for its beautiful beaches and belvedere points.
A multi-cultural environment and a wide variety of real estate solutions are the elements that better describes Msida. Ideal for those who need to feel the energy of the city and for the students that want to stay close to the University. Msida is not far from Sliema and St Julian’s economical hubs and can offer cheaper solutions for commuters in terns of temporary accommodations as well as permanent residences.
St Julian’s is the most important economical and financial hub of Malta where residential spaces meets modern glass offices and contemporary architecture. Zaha Hadid, one of the most famous architects, has chosen St Julian’s as the site for new luxury development called Mercury Towers. High-energy and density inspire the ones who love the city lifestyle especially during the nightlife where areas like Paceville and Bay Street offer the best entertainment. Luxury seafront apartments and penthouses are the most requested residential properties. Retails, hotels and restaurants create vibrant street scenes similar to the ones we can experience in a big city.
Between St Julian’s and Gzira, Sliema represent a gathering between traditions and modernity. Real Estate residential market offer can varies from modern bedroom apartments near the sea, to beautiful refurbished townhouses and maisonettes. A generous commercial and office availability creates a balanced work-life environment for families and for those who aim to work and live in the same hub. Walk on the seafront, grab your lunch by the sea and enjoy a day swim by the famous promenade of Sliema cost by the day or evening. The day life become peaceful and silent during the night. Sliema is Ideal for dining out in pretty restaurants and for a walk between art and architecture, watching the open see or over looking the capital city of Valletta.
Valletta is not only the Capital of Malta but a city you will fall in love with, if you like and appreciate the history, art and architecture. Valletta is the ideal city for intellectuals and vintage lovers. From small and historical streets to monumental architectural spaces, Valletta offers extraordinary suggestions in every point. Vintage cafes, lounge bars, traditional restaurants and classical boutiques represent a timeless elegance. If you like Valletta you like the details. Commercial market offer includes little office spaces in refurbished houses and residential market is mainly based on townhouses and decorated apartments.
How Much Cost a Property in Malta?
Read in this chapter where and how much a property costs in Malta.
Market values can varies considerably and mainly depends on the position, proximity to the sea and quality of the interiors. Sales market value of apartments can varies from 2900 €/sqm to 8000 €/sqm in St Julian’s and Sliema areas. Letting market from 600 €/bedroom to 1750 €/bedroom monthly in the same areas. The cost of apartments decreases gradually with the distance from St Julian’s. Outer areas like Gzira have sales market values that can varies from 1800 €/sqm to 3500 €/sqm, letting market varies from 500 €/bedroom to 900 €/bedroom monthly.
The general average size of an apartment in Malta can varies from 90 to 150 sqm with a weighted average around 110-115 sqm. The fully furnished 2 bedrooms apartment is the most requested typology. Also villas represent an important part of the market demand.
Purchasing a Property for Investment
You want to purchase a property in Malta? Then you should read this section!
Value of residential properties in Malta has increased in more than 35% since 2013 due to the increasing market demand. (Elaboration on Bank of Valletta and National Statistics Office database). The currently Real Estate market is recovering the pre-covid values.
The net profit on rental income has a general average estimated at 4% per annum in Malta but in the most exclusive areas the rental income can reach 7-8%.
The Individual Investor Program (IIP) launched by the Government allows European and Non-European citizens to obtain the citizenship by investing in Special Designed Areas (SDA), special localities that mainly represent luxury properties as the highest living standards. These areas are principally located in Sliema and St Julian’s but also in Mellieha and Gozo we can find these contemporary developments. Foreigners can obtain the citizenship by purchasing a property in an SDA for a minimum value of 700.000 € or renting a property for a cost of 18.000 €/annum and for an holding period of minimum 5 years.
Buy an House: What to Know Before
If you want to buy a house in Malta, you should pay attention to the following things …
If you are looking to buy a home or an investment, we can offer you a high range of properties to find what you are looking for.
Buying a property in Malta can be easy. When you find the property you looking to purchase, the first step is to sign the primarily agreement, called Promise of Sale agreement. After a promise of sale (POS), the process takes generally minimum 8 weeks and signed between the vendor and the purchaser in front of a Notary. After signing the agreement you can proceed paying the 10% deposit on the property price.
The 8-10 weeks represents an holding period necessary from the Notary’s side to make a full due-diligence on the property (Legal analysis and verification of the regularity of the asset).
If you finance your property through a bank loan, you need to set an appointment and ask to obtain a sanction letter as a proof for the loan amount coverage. Generally the banks require a proof of your employment, proof of funds or a bank history.
After the loan agreement, the final deed is read and agreed upon and the balances due are paid accordingly. Within 15 days after the final deed, the Notary have to send the documentation to the Land Registry.
The costs the purchaser has to face in a normal transaction are generally:
- Notary fees : 1.5-2% on the property value
- Stamp duty: from 5% to 1.5% on the first 400.000 €
I hope you enjoyed this little guest post from Mark Molnar and his team.
So dear readers, I hope that Let Buy Mark could now bring some light into the darkness and your questions about the Maltese real estate market have been largely answered.
If there are any questions left unanswered, feel free to contact us accordingly in the comments section and we will answer them.