Malta

Malta’s housing market is defined by a strong culture of home ownership and sustained price growth. Recent figures indicate that around 11% of residents rent their home, while the vast majority—close to 89%—own their property, making Malta one of Europe’s highest for home ownership rates. The median purchase price for apartments across the country is between €3,000 and €3,300 per square meter, with central areas like Sliema and St Julian’s approaching €4,000 per square meter. An average apartment costs roughly €374,000. For renting, the average annual long-term revenue for a 2-bedroom property in prime locations is about €15,000, which means median rents generally fall between €20 and €25 per square meter monthly depending on locality.

Publicly owned housing, managed primarily by the Housing Authority, plays a limited but crucial role: approximately 12,300 households benefit from various schemes, and about 550 new social housing allocations were made in 2024. These programs combine new construction and regeneration with innovative initiatives that temporarily utilize private sector rental stock to meet demand. Social housing, which in Malta is sometimes considered synonymous with public housing, is specifically targeted to low-income and vulnerable groups, while some new policies now address gaps for families above traditional eligibility thresholds. Public housing’s overall market share remains comparatively small, but its impact is significant for targeted beneficiaries.

Malta faces a significant housing crisis driven by rapid population growth, the escalating cost of both buying and renting, and exceptional demand from expatriates and tourists. The population has surged by about 32% over the past decade, primarily due to an influx of foreign workers and residents. This has put substantial pressure on housing, with property prices rising by approximately 53% since 2015 and rental prices escalating by 6.8% in just one year. Apartments remain the most supplied type, but strong and persistent demand means price growth continues, especially for homes in the €201,000–€350,000 range and premium properties.

The crisis acutely affects non-Maltese residents, who make up over a quarter of the population and account for nearly 90% of all tenants. Expats, low-to-middle income individuals, young adults, and vulnerable groups—such as low-income families and pensioners—are especially impacted, often facing rent levels that consume a large share of their income. Rental costs in popular areas can reach between €1,100 and €2,800 per month depending on location and property size, pricing many out of central and desirable districts. Additionally, the tourist rental market and investment demand continue to compete with locals for available housing, further exacerbating issues of affordability and accessibility.

Malta’s national government currently integrates affordable and sustainable housing into both policy and practice, targeting segments that struggle to buy at market rates but don’t qualify for social housing. In 2025, it announced a flagship public-private initiative to develop at least 260 affordable housing units, each sold at 30% below market value, with ownership gradually transferred after 20 years. This model is designed to help young and middle-income families who are under-served by traditional schemes, and profits will be reinvested to scale up future projects.

Recent national targets include expanding affordable housing options, as supported by a new €9 million budget allocation aimed at low- to middle-income earners. There is a push for sustainable homes, with grants for energy-efficient building renovations and new “Buy Sustainable Property” schemes, offering up to €9,000 for those purchasing highly energy-efficient residences.

Other government activities include ongoing investment in social housing development with around 750 units scheduled by 2026 through state-backed entities. The Housing Authority regulates private rentals, offers homeownership support, and renovates public stock with a €30.5 million commitment since 2020. National discussion forums and planned regulatory updates further broaden approaches, including adapting homes for seniors, and prioritizing green, tech-forward rental options for modern demands—demonstrating a multifaceted, sustainability-driven housing policy.

Housing cooperatives in Malta occupy a very marginal role in the country’s housing landscape. The sector is still largely undeveloped: cooperative housing represents an alternative model for affordable, community-based living, but its share of the total housing stock is negligible, with no official figures indicating significant market penetration. Almost all residences in Malta are owner-occupied or fall within the private rental or public (social) housing categories, leaving cooperative housing as an underutilized option.

In light of rising housing costs, exclusion from homeownership, and pressure on rental affordability, some national organizations and advocacy groups are calling for stronger support of housing cooperatives as part of a more inclusive and sustainable housing framework. Maltese law provides a legal framework for cooperatives, including housing cooperatives, subjecting them to state registration, financial audits, and supervision, yet there are currently no major functioning cooperative housing programs at national scale.

Recent policy proposals and budget recommendations encourage government action to facilitate the development and recognition of housing cooperatives. While these recommendations highlight benefits such as affordability, social cohesion, and residents’ participation, actual government policy and direct promotion remain limited to consultation, legislative facilitation, and inclusion in strategic visions for more adaptable housing. Formal activities to promote cooperative housing have included calls for administrative reform, potential public grants, and regulatory adjustment to support community-based cooperative housing initiatives, but the sector is still at its formative stage rather than a significant contributor to overall housing provision.