Commercial Real Estate - Malta | Statista Market Forecast

The projected value of the Commercial Real Estate market market in Malta is expected to reach US$21.07bn by 2024.
This signifies a notable growth potential within the country's real estate sector.
Moreover, it is anticipated that the market will exhibit an annual growth rate of 1.74% during the period of 2024 to 2029.
Consequently, by 2029, the market volume is forecasted to reach US$22.97bn.
In a global context, when comparing the value of Real Estate, it is noteworthy that the United States is expected to generate the highest value, amounting to US$25.3tn in 2024.
This highlights the prominence of the United States within the global Commercial Real Estate market market.
The demand for office spaces in Malta is skyrocketing due to the country's booming tech and gaming industry.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

Malta, a small island nation in the Mediterranean, has seen a significant development in its Commercial Real Estate market in recent years.

Customer preferences: One of the main factors driving the growth in the Commercial Real Estate market in Malta is the increasing demand for office spaces. With the country's strong economic growth and the rise of various industries, both local and international businesses are expanding their operations and requiring more office spaces to accommodate their workforce. Additionally, the growing popularity of co-working spaces and flexible office solutions has also contributed to the demand for commercial properties.

Trends in the market: A notable trend in the Commercial Real Estate market in Malta is the development of mixed-use properties. Developers are increasingly incorporating residential, retail, and leisure components into their commercial projects to create vibrant and integrated communities. This trend is driven by the desire for convenience and efficiency, as well as the changing preferences of businesses and individuals who seek a more holistic and balanced lifestyle. Another trend observed in the market is the focus on sustainable and energy-efficient buildings. With the growing awareness of environmental issues and the need to reduce carbon footprint, developers in Malta are incorporating green building practices and technologies into their commercial projects. This not only helps attract environmentally conscious tenants but also reduces operating costs in the long run.

Local special circumstances: The limited land availability in Malta has led to a high demand for commercial properties in prime locations. As a result, developers are increasingly exploring opportunities to redevelop existing buildings or repurpose underutilized spaces to meet the growing demand. This has led to the revitalization of older areas and the creation of new commercial hubs, further driving the growth of the Commercial Real Estate market.

Underlying macroeconomic factors: The strong economic growth and stability of Malta have played a crucial role in the development of its Commercial Real Estate market. The country has experienced consistent GDP growth, low unemployment rates, and a favorable business environment, attracting both local and international investors. Additionally, government initiatives and incentives to attract foreign direct investment have further stimulated the growth of the Commercial Real Estate market. In conclusion, the Commercial Real Estate market in Malta has witnessed significant development due to the increasing demand for office spaces, the trend towards mixed-use properties, the focus on sustainability, the limited land availability, and the favorable macroeconomic factors. These factors have collectively contributed to the growth and transformation of the Commercial Real Estate market in Malta, creating opportunities for investors, developers, and businesses alike.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.