VALLETTA (MALTA) (ITALPRESS/MNA) – Property prices in Malta and Gozo have surged sharply over the past year, deepening affordability pressures even as average apartment sizes continue to shrink, a new KPMG study for the Malta Development Association shows.
Asking prices for apartments rose by 10% in 2024 to an average of €414,621 – about €40,000 more than last year. Median prices climbed to €317,000, pushing the price-to-income ratio to a projected 14.5 in 2025, confirming that housing costs are rising faster than wages.
Low-income couples on the minimum wage can now afford just 2.2% of properties on the market, down from 5.7% a year earlier. Even average-income couples saw their purchasing power fall, with 70% of apartments within reach compared with 79% in 2023. More than a third of first-time buyers now rely on parental support.
Since 2017, apartment prices have jumped 59%, rising by nearly €15,000 every year. Penthouses now average €554,927, maisonettes over €405,000, and terraced houses €735,000. Prices per square metre increased by 14% in the past year alone.
Gozo recorded the fastest growth nationwide, with values up 87% since 2018. Southern Malta followed at 69%, while the Grand Harbour area saw the smallest rise at 9%.
Despite affordability concerns, market activity remains strong. Residential permits reached 8,716 units in 2024, with further growth expected in 2025. Rentals above €1,200 per month now make up over 60% of listings.
Construction and real estate continue to underpin the economy, generating €3 billion in Gross Value Added and employing nearly 26,000 workers. Labour shortages and rising wage costs persist, adding pressure to prices.
At a national conference, Prime Minister Robert Abela rejected claims that residents are being priced out, citing an 82% homeownership rate and government schemes supporting around 1,000 families.
– photo IPA Agency –
(ITALPRESS).
