The residential property market is "busy", and "demand outweighs supply", real estate agents told The Malta Independent on Sunday, but there are mixed thoughts on whether property prices will level out in the coming years.

This newsroom spoke to some of Malta's top real estate agencies to obtain a clear picture about the residential property market today, and their thoughts about property prices in the near future.

Property prices continue to rise, and asked whether they believe property prices will level off in the near future, answers ranged from it "appears unlikely", and "a 'plateau-ish' scenario seems likely, where prices still drift upward but more slowly," to belief that it should level out.

Sam Zammit - CEO of RE/MAX Malta

CEO of RE/MAX Malta Sam Zammit said that "the residential property market in Malta and Gozo is solid and very active

"Demand for residential properties is outweighing supply across all segments, especially the upper middle to high end market."

As for what the more popular localities in which people seek residential property to purchase are, he said that while Sliema, St Julian's, and nearby towns continue to be sought after locations, recent years have witnessed a notable rise in demand for residential properties across the southern, central and northern regions.

"Property sales are no longer focused in specific hotspots but are increasingly dispersed throughout the entire island This broader interest is largely driven by affordability, driving buyers to explore diverse locations beyond the traditional regions."

In terms of the areas which are more popular specifically among Maltese citizens to buy to live in, he mentioned the central and south regions of the island.

Asked about the rental market, specifically which locations are most sought after by people who wish to rent a place to live in, he said that it depends on the requirements and budget. "The most sought after towns continue to be Sliema, St Julians, Swieqi, and Gzira, while recent trends indicate growing demand and interest in areas such as San Gwann, Msida, Pieta, Birkirkara, Marsascala and Mellieha."

"Similar to sales, rental transactions were historically concentrated in specific regions, but recent growth has expanded steadily across other regions of the islands, reflecting a more balanced market distribution."

Looking ahead at which areas he foresees becoming more popular for residential purchases in the coming years, he said that based on data and trends, the central and southern parts of Malta will remain popular for residential purchases. "As I mentioned previously, we are already seeing the trend shifting towards these regions and I do not foresee that this trend will slow down anytime soon."

Regarding property prices, and whether he foresees a situation where it can level out in the near future, he said that currently the market seems to be taking a brief pause after several years of rapid price increase, "but overall property prices continue to rise moderately. Properties that are priced appropriately are selling quickly, typically within the first 30 days of listing with us. While some overpriced listings may create a misleading impression of a slowdown, the overall real estate market remains very robust and resilient" 

"Given the increasing costs of raw materials, labour and development, a decline in property prices appears unlikely."

Steve Mercieca, Co-Founder and CEO of QuickLets and Zanzi Homes

Co-Founder and CEO of QuickLets and Zanzi Homes Steve Mercieca said that the market is just past its infancy.

"With many expats from all over the world choosing Malta we're only going to keep seeing it grow. Today Malta needs to be compared to a European capital city. A short and long term plan needs to be devised to protect the locals and welcome other EU citizens as well as TCNs needed to keep up with the demand the island needs. The demand is huge, and it's not about demand and supply anymore. The market has shifted to something we've never seen before. Demand and affordability."

As for what the more popular localities in which people seek residential property to purchase and live in are, he said that "it starts from Sliema and works its way out. Sliema is the highest in demand and of course the most expensive. Simply because of what it has to offer."

Asked about localities which are more popular specifically among Maltese citizens, he mentioned Sliema, Gharghur, Naxxar, San pawl tat-Targa "and of course Madliena, but that's in a class of its own."

Queried about the top popular areas to rent, he mentioned St Julian's, Swieqi, Gzira and Msida. "It all depends on the type of person renting and why they are renting in that area."

In terms of which localities he foresees becoming popular in the future, he said that Pembroke is very much on the horizon. "With its beautiful coastline, proximity to the central hubs as-well as hosting so many schools and having such a friendly community."

As for whether he thinks that rising property prices will level out in the future, he does not believe so.  "The only reason it hasn't increased more is because of affordability. In my opinion this is the tip of the iceberg."

"What will happen is there will be a correction to the low quality and aged properties. They will go down. The new ones will only keep rising if the affordability rises."

Douglas Salt - Director at Frank Salt

Douglas Salt, a Director at Frank Salt said that it is a mix of investors trying to accommodate the rental market and second time buyers willing to move into nicer, more spacious properties. "First-time buyers have it tough, but they always have had it tough." He said that family sizes are smaller than they were in the past, so where in the past people would look for three-bedroom spaces, today two-bedrooms would suffice. He said that space-wise it is more of an apartment-based market, but that even villas are becoming smaller than they were in the past. "The villa we know of the past doesn't really exist any more, its more of a 300sqm semi-detached today."

Regarding the current areas for residential property purchases, he said that people usually tend to buy in the vicinity where they were brought up. "So if someone is from Marsaskala, the popular area would be around that locality."

"There isn't much mobility from the area you were born unlike abroad, as the extended family still plays an important role for us."

If someone would want to upgrade to a villa they would seek villa areas, he said.

As for rental investments, he said they would tend to be in the more touristy areas like Sliema and St Julian's. He said that the residential rental market traditionally follows offices, "so where there are offices there would be residential rentals because foreigners working in Malta don't usually have a car and tend to use other forms of transport." He said Mriehel is becoming another hub for commercial office space and anticipates that there will be demand in that area for residential rental space eventually.

Looking ahead and asked what the up and coming areas are, he said it depends on how clever the planning process will be. "There are areas which haven't yet been developed in a big way, like Hamrun, which are central. If there is a nice master plan with open spaces, proper height and streetscape planning, that type area could be completely transformed and become immensely popular. but it depends on the vision of planners."

"If they will just think about, for instance, setting heights at four storeys plus a receded floor where old townhouses are knocked down and people build what they can with what space they can, then it would be another disaster. But if there is proper planning, there are areas like Marsa and Hamrun which, if they are redeveloped tastefully could become prime residential areas. It depends on planners and their vision."

Asked whether he believes rising property prices will level out in the future, he anticipates that it should level out, "because there was a dramatic rise in the last year and a half, and I think it needs to level out now. If people cannot sell property, it will have to level out. A large percentage of property cost is land, and if you don't pay the price for the land because you cannot build it at a profit then the land price has to go down at some point."

Robert Spiteri Paris - Managing Director of Perry

Describing the state of the residential property market, Robert Spiteri Paris, Managing Director of Perry said that his company mostly deals in the mid to high end of the property market and so could comment on that segment of the market. "Our side the market has remained extremely healthy and very buoyant. There is still a lot of foreign interest which greatly helps the market."

"There is still a healthy flow of people moving to the island, and there are some very interesting new markets, such as people coming from the USA who find the island as a nice alternative to living in a bigger country. The USA until a few years ago was a relatively untapped market."

"Europe still remains our largest market," he said, in reference to people moving to Malta from European countries.

Asked whether he sees property the rising property prices levelling out in the future, he said it does not look like it will. "There are a lot of government incentives, such as if a buyer purchases a property in an Urban Conservation Area they are tax exempt on the first €750,000. And there have been plenty of tax saving initiatives," he said, which he thinks will only help boost the market further. "People are moving to Malta for many reasons, even for security reasons."

Asked which areas he sees as the most popular, he mentioned the Harbour area, in reference to the Three Cities, Valletta, Sliema, St Julian's, Ta'Xbiex. "It depends whether they prefer the historic part of the harbour, which is the Three Cities and Valletta, or the newer part." Regarding the Three Cities, he said it has become a popular market, and is growing fast. "We have top clients who fall in love with that area, and if they are buying a holiday home consider that Malta."

"Valletta has almost reached saturation point in terms of property availability, and the Three Cities are going through the same boom Valletta had gone through."

He also sees Floriana as an emerging market, he said.

Regarding Maltese property buyers specifically, he said that they still seek properties in Sliema, St Julian's and those who want a traditional feel look to villages like Lija, Attard and Balzan "which are popular. He said that as property prices rise "Maltese are being more adventurous, and are open to looking for properties in Qrendi and Mqabba for property with nice outdoor space."

For rentals the harbour area is by far the most popular, including towns like Sliema. St Julian's, Msida, Gzira Ta Xbiex etc and suburbs of these towns like Swieqi, Ibrag etc., he said. "These localities are on the east coast and are the most popular as they also offer the best quality amenities, transport routes, entertainment options and vast array of leading shops and restaurants within walking distance."

Alexis Cachia - sales manager at Sara Grech real estate

Alexis Cachia, a sales manager from the Sliema Branch at Sara Grech real estate, said that the residential property market today is "busy".

"it is very active and according to the National Statistics Office, Malta's residential-property price index (RPPI) rose by 5.6% in Q2 2025 compared with Q2 2024."

Regarding the more popular localities in which people seek to purchase residential property, Cachia said that the more popular areas are in the East of Malta.

"Topping the list are Sliema, St Julians and Swieqi whilst Pembroke and Gzira have become much more popular. These are the top towns where investors purchase property as a rental investment, as the demand is very high and the properties would always be occupied."

Regarding the rental market, Cachia described it as "very strong, especially in the East area."

"As mentioned before Sliema, St Julians and Gzira are top, and there is a very large demand in the South and North too, as some tenants prefer quieter areas, more value and proximity to their workplace."

As for the more popular localities specifically among Maltese citizens seeking property to purchase to live in, he said: "Definitely Central and South of Malta. The first-time buyers dominate the market with popular towns being St Paul's Bay, BirkirKara, Mosta, Naxxar then down to the south to Zabbar, Fgura and Zurrieq. Generally, First time buyers look more for affordability and practicality, rather than top locations."

Asked about the localities Cachia foresees becoming popular in the next 5-10 years, Cachia said that Gzira has increased a lot, "and I think that Msida will follow suit, St Paul's Bay and Qawra will also increase as prices tend to be lower in these parts of the island, and there is a high demand for coastal towns."

Regarding property prices and whether Cachia foresees a situation where they could level out in the near future, Cachia said that property prices are still rising. "Median 'asking prices,' have risen, where an average 3 bedroom apartment asking prices hit €415,000 in 2025 - a roughly 10% increase compared to the previous year. Since 2017, prices for apartments have risen by almost 59%, which amounts to roughly €15,000 per year on average. So, the data clearly show that property prices - both transaction-based and advertised - remain on an upward trajectory."

"Affordability is worsening and this suggests the market is becoming increasingly challenging for many Maltese households. Therefore it could be possible that prices level out soon and price growth will slow down. However, I do not see a sharp decrease in the next few years. A 'plateau-ish' scenario seems likely - where prices still drift upward but more slowly, especially for mainstream segments like apartments and maisonettes, driven by continued demand and limited land supply as well as moderate new construction. Unless there's a major shock (economic crisis, dramatic interest-rate shifts, significant policy changes), the fundamental drivers (demand, shortage, desirability) will remain."