From Aspirations to Reality: A Guide to the Maltese Real Estate Market

When exploring Malta's real estate market, one cannot miss the unique architectural elements, thresholds, and terraces of its splendid and varied properties. A small townhouse encircling the historic ramparts of Valletta, an expansive villa situated along the coast of Gozo, or a contemporary flat overlooking a vibrant Pjazza—a piece of Malta awaits each individual. The objective of this guide is to offer valuable insights into navigating Malta's varied terrain in order to help identify the property of your dreams.

Maltese Space and Architectural Styles

Malta's architectural landscape serves as a remarkable representation of the island's extensively rich and historical past, conveying narratives via a remarkable fusion of historical limestone facades and modern, streamlined designs. It is critical to familiarise oneself with the extensive variety of architectural designs and features that are prominent in Maltese properties and the real estate market overall in order to develop realistic expectations when looking for the perfect home, rental unit, or purely from a speculative investment perspective.

Traditional Maltese Townhouses

In Malta's towns and villages, traditional Maltese townhouses are commonplace. These dwellings provide a glimpse of Malta's historical significance by virtue of their brightly coloured enclosed balconies - referred to in Maltese as "Gallarija," high internal ceilings, locally produced patterned floor tiles, and rustic wooden beams. In addition to their unique Maltese charm, these townhouses typically also include open courtyards, which are highly valued in classic Mediterranean architecture and are becoming increasingly difficult to come across in newly built developments.

Townhouses in the past were very spacious and enjoyed large living areas. However, as population density and urbanisation have increased, it has become commonplace for such large townhouses to be effectively demolished and converted into multiple apartment units. As a result, Malta's signature townhouses are becoming increasingly scarce and highly sought-after due to their distinctive features and limited supply.

Farmhouses and Villas

Farmhouses and villas, which are prevalent in rural areas or on the outskirts of towns, maybe the ideal place to stay if peace of mind and being close to nature are priorities for you. These luxurious residences typically include large outdoor spaces and often feature private pools, while offering more privacy and seclusion than Malta's hectic towns and village cores. Moreover, several farmhouses, especially the older ones, may present an exciting opportunity as an investment venture or conversion project. Purchasing a classic farmhouse that can be converted could be an opportunity for the restoration of a piece of history, with the chance to combine modern and vintage features to reflect one’s own personal style.

Due to limited space and increasing population across the islands, standalone real estate options like farmhouses and villas are becoming rarer, and in turn, fetch higher prices as the demand rises and availability declines. In other words farmhouses and villas seem to be facing a similar faith to traditional townhouses, whereby, the option to convert an older farmhouse or villa into a residential unit block, whilst possibly maintaining some of the original elements, generates a more attractive return to developers and investors, as opposed to fully retaining the original structure.

Residential Apartment Units

As mentioned above, due to the increasing demand for housing across the islands, residential apartments now dominate the urban landscape of Malta as the country continues to develop and population increases. Residential apartments may vary broadly in price, size, quality and overall standard of furnishing, from sea-view and high-end developments that provide exclusive access to community gyms, swimming pools and other amenities, to much more affordable residential blocks that cater to a wider spectrum of financial constraints and affordability.

Although residential apartments and smaller units may not possess the same historic allure as townhouses or farmhouses, they may still provide contemporary comfort, a high level of safety and security, and overall convenience. Given Malta’s relatively small footprint, most residential units still offer convenient access to public transportation, fully-fledged commercial centres or small village stores, sports facilities, gyms, entertainment venues, restaurants, pubs, healthcare centres, and other public amenities, possibly with all these being within walking distance of the residence.

Furthermore, even in urban areas, outdoor space remains valued, albeit sometimes limited. Whilst many standalone properties such as villas, farmhouses, or maisonettes, would enjoy access to a private roof, yard, and several balconies, typically residential apartments would still offer at least a shared outdoor space in the form of a common courtyard or shared roof, together with one or more private balconies at the front or rear of the unit allowing the residents to benefit from the 300 days of sun throughout the year and views of the town or countryside.

The Lively Lifestyle of Central Malta

Central Malta consists of a number of localities, including Attard, Balzan, Birkirkara, Gzira, Lija, Msida, Pieta, St. Julian’s, San Gwann, Santa Venera, Sliema and Ta’ Xbiex. The area is known for its vibrant environment, multicultural diversity, and offering a wide range of amenities that are conveniently located, whilst at the same time serving as a corporate and entertainment hubs. Given the rich diversity and availability of all that you may need nearby, it has become commonplace for those living in Malta’s central areas to get by without the need of owning a private vehicle, but rather by travelling on foot, using public transport, and simply grabbing a cab when really necessary.

In other words, living in Malta's central region provides easy access to a wide range of amenities and services. Modern fitness centres, parks, public swimming pools, recreational areas, shared office spaces, historical sites, and entertainment venues are all easily accessible, whilst never being too far from the shore, beaches, and lidos.

When it comes to dining and entertainment, Sliema, Valletta, and St. Julian's are packed with options, from fast food to Michelin-rated fine dining, speciality coffee shops to Starbucks or Costa, pubs and bars, as well as lounges, lidos, and nightclubs that offer a variety of gastronomic, musical, and atmospheric experiences to suit all preferences at any time of day. This makes Malta’s central areas a hotspot for foodies, coffee lovers, or those simply looking for a good night out with friends or family.

The highly integrated public transport system in Central Malta ensures easy mobility for its residents and visitors throughout the region. Frequent buses and water ferry services between Valletta, Sliema, and the Three Cities are frequent and offer quick connections at a very reasonable price for tourists and possibly free from Furthermore, Valletta functions as Malta's main transport hub, providing links to almost all locations on the island.

Benefits of Living in the Malta’s Central Area:

• Central Malta may be a desirable location for investors seeking capital appreciation over an extended period due to its exceptional rental potential.

• There are numerous opportunities for cultural immersion and social networking within a diverse social setting.

• A high volume of apartment units and penthouses featuring contemporary amenities are comparatively abundant.

Difficulties or Disadvantages of Living in Malta’s Central Areas:

• Due to the high demand and a wider offering of Special Designated Area (SDA) properties, real estate property value and related costs are typically more expensive than other areas.

• The real estate market can be very competitive and fast-paced, whereby well-maintained and reasonably priced units won’t be on the market for long.

• Malta’s population has increased significantly, and the central areas are more highly dense in terms of population when compared to more rural, northern or Southern parts of Malta.

At its core, central Malta offers a vibrant variety of localities that are rich in historical significance, offer architectural points of interest, picturesque seaside views, and nearby access to all you may need. When considering all, most find it possible to overcome the perceived challenges and enjoy living in the centre of the Mediterranean by keeping a realistic perspective and set of expectations.

Embracing the Lifestyle of the Countryside

Some of the unique benefits that one finds in the south of Malta and Gozo are less common in the central area, such as a more laid-back vibe and lifestyle, larger homes, and ease of access to the outdoors. The somewhat slower pace of life that is characteristic of these places is one draw for people who prefer a more peaceful lifestyle. Everyday life in more rural areas still focuses on embracing local traditions and Maltese culture, with the neighbourhoods having a more engaged sense of community, and a more laid-back approach that stands in sharp contrast to the hectic pace of the busy urban regions, or city life.

Despite the seemingly remote element of these areas, Malta's small size makes travel to the more central necessities a minor challenge, whereby one is not losing out on much in terms of accessibility and transportation. Putting things into context, it merely takes twenty to forty minutes to drive from one side of the island to the other. The same is true for cycling or walking, given the vicinity of villages and settlements to the central area. Moreover, water Ferries connect Gozo to the main island regularly, whilst a fast ferry alternative is also available for travel to or from Valletta on foot.

In terms of technology and connectivity, you won't be without access to contemporary comforts, even if you live in a rural area. Across the islands, easy and reliable access to 5G networks means that you don’t need to worry about staying connected, whether for work, getting around on maps, communicating with your loved ones, or sharing your experiences in Malta on your socials. Similarly, efficient online courier delivery services such as Wolt or Bolt operate reliably to the point that your lunch, dinner or grocery list is never more than an hour away from your doorstep, even if you’re living outside of the central areas.

Most of all, living in Malta’s countryside offers the opportunity to avail of a slower pace of life, whilst enjoying the breathtaking natural scenery and the rustic charm of traditional houses, as well as picture-perfect locations, such as the tranquil panoramas of Gozo and the charming seaside settlements of Marsascala in South Malta.

Benefits of Living in Rural Malta:

• Real estate costs are relatively lower in comparison to the central regions, providing greater value for your investment.

• One can more easily identify a property with larger living areas and private outdoor space, whilst also including picturesque natural surroundings, and a rustic atmosphere.

• Due to Malta’s size, living in rural Malta does not mean that you are far from the necessities, or missing out on online connectivity.

Difficulties or Disadvantages of Living in Rural Malta:

• Local social activities and the availability of amenities may not be as abundant or varied as they are in Central Malta.

• The frequency and speed of public transport may be reduced or non-existent in certain areas, which may render car ownership preferable, or the use of taxis more necessary.

Overall, the rural areas of Malta provide a picturesque setting with hospitable restaurants, a lively yet more culturally and tradition-driven community, and frequent local festivities at designated times of the year. The minor inconvenience of the potential commute for some, in comparison to the benefits of tranquillity and the splendour of the Maltese countryside, may be a well-balanced trade-off.

In conclusion, conducting thorough research on potential properties and real estate options in Malta is crucial for any successful investment. By taking advantage of the opportunities in Malta's real estate market, individuals can benefit from the jurisdiction’s resilient economy and thriving real estate market.

If you’re seeking to find out more about how to navigate an investment in Malta’s real estate market, as well as how this links to Malta’s various relocation options for non-EU citizens, such as the Malta Nomad Residence Permit (MNRP), the Malta Permanent Residence Programme (MPRP), or Malta’s Citizenship by investment regulations, then reach out to Attard Baldacchino’s team of professionals to schedule your consultation and avail of our trusted service offering.