Real Estate - Malta | Statista Market Forecast

In 2024, the projected value of the Real Estate market market in Malta is expected to reach US$126.30bn.
Among the various segments, Residential Real Estate dominates the market with a projected market volume of US$105.20bn in 2024.
This segment is expected to experience an annual growth rate of 3.81% from 2024 to 2029, resulting in a market volume of US$152.30bn by 2029.
When compared globally, United States is expected to generate the highest value in the Real Estate market market, reaching US$132.0tn by 2024.
Malta's real estate market is experiencing a surge in demand, driven by foreign investors attracted to the island's favorable tax incentives and vibrant lifestyle.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Malta has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Maltese Real Estate market have been shifting towards modern and luxurious properties. Buyers are increasingly looking for properties with high-quality finishes, modern amenities, and convenient locations. This trend is driven by a growing middle class with higher disposable incomes and an increasing number of international buyers attracted to Malta's favorable tax incentives and lifestyle. One of the key trends in the market is the development of luxury residential properties, particularly in coastal areas and prime locations such as Valletta and Sliema. These properties offer stunning sea views, high-end facilities, and proximity to amenities such as restaurants, shops, and entertainment options. The demand for luxury properties is fueled by both local and international buyers who are seeking a high standard of living and investment opportunities. Another trend in the Maltese Real Estate market is the growing popularity of rental properties. With the rise of the sharing economy and an increase in the number of expatriates and digital nomads, there is a strong demand for rental properties, especially in urban areas. This trend is also driven by the high property prices, making it more affordable for some to rent rather than buy. Local special circumstances in Malta, such as limited land availability and strict planning regulations, have contributed to the growth of the Real Estate market. The scarcity of land has led to higher property prices, making real estate a lucrative investment option. Additionally, the government's efforts to attract foreign investment through the Malta Individual Investor Program (MIIP) and the favorable tax regime have further fueled the demand for properties in the country. Underlying macroeconomic factors have also played a significant role in the development of the Real Estate market in Malta. The country has experienced strong economic growth in recent years, driven by sectors such as tourism, financial services, and gaming. This has led to an increase in disposable incomes and a higher demand for properties. Furthermore, low interest rates and favorable mortgage conditions have made it easier for buyers to access financing and invest in the Real Estate market. In conclusion, the Real Estate market in Malta is experiencing growth due to customer preferences for modern and luxurious properties, trends such as the development of luxury residential properties and the popularity of rental properties, local special circumstances including limited land availability and strict planning regulations, and underlying macroeconomic factors such as strong economic growth and favorable financing conditions. These factors combined have created a thriving Real Estate market in Malta.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. 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 particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

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.

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Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Malta

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Value Split

Volume

Analyst Opinion

Transaction Value

Methodology

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