In 2025, the economic contribution of the industry has stabilised. But some large price jumps from last year when it comes to residential property for sale and rent were registered.
Malta’s real-estate sector came together on November 25, 2025 for the National Property Conference 2025, an event that delivered an assessment of the forces reshaping the island’s built environment.
Held at the InterContinental Hotel and organised by KPMG in Malta in partnership with Property Malta, Times of Malta and the Malta Development Association, the conference brought policymakers, developers, planners and financiers into the same room for a rare moment of sector-wide reflection.
Proceedings opened with the launch of the 2025 ‘Construction Industry and Property Market Report’, a data-driven overview that set the agenda for the conversations that followed.
Buying a home is getting tougher
One of the clearest messages in this year’s report is that buying a home is becoming harder, especially for younger people.
A typical young couple earning around €35,000 a year can afford only around one-third of advertised apartments currently on the market. For those on minimum wage, the options drop to just 2 percent.
This reality is forcing many first-time buyers to rethink what they can realistically purchase, as well as the locality.
Accelerated increases in advertised apartment prices.
Prices have kept on climbing, but the increases are more moderate than before. The median price of an apartment now sits at €317,000 – up from €280,000 two years ago.
However, instead of blanket increases across the island, clearer regional differences are emerging.
The North Harbour Region remains more expensive than the Central Region, while buyers seeking better value are increasingly turning to Gozo, the South, and the Northwest.
These areas are becoming especially popular with first-time buyers who want more space without the high city price tag.
This could set the stage for long-term shifts in where people choose to live and where developers focus their efforts.
Getting a loan is not as easy as it used to be
Stricter bank rules continue to shape the market. Buyers now have to pass tougher affordability checks, including stress tests that calculate whether they could handle higher interest rates.
Even though mortgage rates have come down slightly, the stricter criteria still limit how much many buyers can borrow, especially for those who want to buy a buy to let, rather than first time buyers.
Interestingly, developers say these same rules apply to them, something they argue does not match their business structure and may slow down future project planning.
Sustainability is growing… slowly
One positive trend in this year’s report is an increase in homeowners upgrading their properties for energy efficiency. Around 73 percent have carried out some form of retrofit to improve performance, whether it’s insulation, better windows, or energy-saving appliances.
However, not everything is running smoothly. A surprising number of buyers still do not receive an EPC (Energy Performance Certificate), even though it is legally required. This highlights ongoing gaps in enforcement.
Is Malta really worse off than the rest of Europe? Not quite.
One statistic that may surprise many is that fewer Maltese households spend over 40 percent of their income on housing compared to the EU average.
While that sounds reassuring, it does not tell the full story. Younger buyers and lower-income households feel the squeeze the most, and rising prices are not helping.
A market that is still strong, but changing fast
Despite these challenges, the property market is not slowing down dramatically; it is simply shifting. Instead of blanket increases across the island, we are seeing clearer regional differences.
Malta’s property market remains active and resilient, but it is clearly entering a new chapter, one where affordability, smart lending, and long-term planning matter more than ever.
As the market recalibrates, buyers, developers, and policymakers will need to adapt to ensure that Malta remains both competitive and liveable in the years ahead.
