Since 2018, the cost of purchasing an apartment in Malta has risen consistently, quarter after quarter.

In the same time period, the cost of maisonettes decreased twice, -3.6% in the second quarter of 2018 and -0.6% in the first quarter of 2021, but has otherwise been increasing.

Maisonette purchase prices have increased more gradually than the rate of increase for apartments. 

Though the PPI does not directly measure increases in rent costs, however, many people are aware of rapidly increasing rental prices across the Maltese islands.

Given that purchase prices are continuing to increase, it is likely that many landlords will increase rental prices so that it will continue to be more profitable to let, rather than sell.

If purchase prices continue to rise, and wages do not rise in accordance with those increases, many are likely to be priced out of the property market.

Although it has been made clear that a significant portion of the Maltese population opposes rampant construction, without more construction, the pool of properties will stop expanding. As a result, property costs are likely to increase even more.

This means that the interests of (especially) younger people who are concerned about climate change and overdevelopment, but who would also like to own a property, are at odds.

Though some have suggested that banks should incentivise consumers to make “sustainable” choices when buying a home, there hasn’t been any significant government action to curb increasing prices and assist first-time buyers.

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