Malta real estate rental market may be overheating

Average rentals charged by landlords on Malta have increased by almost 50 pre cent over the past three years, causing concerns about overheating.

For several decades, Malta has been a favourite destination for British and other Western expats for its climate, charm and less than strict tax regime. It’s also a hub for workers from poorer countries, who arrive to service the island and its more upscale residents. Concerns over the huge rise in rental charges extend to new arrivals at all financial levels, with a report stating expats are being charged what rental agents believe they can pay rather than the actual rental value of the property.

The increase covers all regions on the island, including coastal areas and the central region, but excludes Malta’s companion island of Gozo. It’s also hitting hard on Maltese nationals looking for rental homes, with average prices for upscale properties reaching as high as over €1,000 a month and averages coming out at €800 a month. According to local real estate agencies, bidding wars between potential tenants are now commonplace.

Rental homes at rates suitable for single adults or low-income families aren’t even being featured in rental property listings, and even locals on the Maltese minimum wage of €735 per month are having difficulty finding affordable homes. Expatriate workers arriving to take on low-paid jobs aren’t getting a look-in, even although they need to find accommodation immediately they arrive.

Experts believe the rental property market known needs to be carefully monitored for a shortage of properties available to low-income households as, even now, demand is far outstripping supply. Real estate prices in general are also on the rise, although prices depend on locations across the island.

At present, homes costing between €100,000 and €150,000 are most in demand but supply is limited, iwth prices being forced upwards as a result. Those looking to emigrate to Malta need to investigate the property market well in advance, whether they’re intending to rent or to buy.