19 years of salaries needed for a 100sqm home in Malta: Study

Malta continues to face challenges in housing affordability, with a recent report highlighting that it takes an average of 19.3 years’ worth of salaries to afford a 100-square-metre home.

The report, published by BestBrokers.com, examined property prices relative to net monthly income, inflation, and real mortgage interest rates across 62 countries, offering a stark look at the financial burden of homeownership in Malta.

The average price of a 100-square-metre home equates to 232 monthly net salaries, a significant figure when compared to countries like Denmark, where only 114 salaries are required. In practical terms, this means Maltese residents would need nearly two decades of saving their entire earnings, without spending on essentials such as food and clothing, to purchase a modest-sized home.

This stark figure places Malta closer to the least affordable countries in Europe, such as Slovakia, where a 100sqm home costs 297 net salaries– equivalent to 25 years’ worth of income.

In contrast, countries like Denmark, Ireland, and Sweden have significantly lower affordability barriers, requiring 9.5 to 11 years of salaries for similar homes.

Malta’s housing market has not only faced challenges in affordability but has also seen consistent growth in property prices. According to the National Statistics Office (NSO), the Property Price Index (PPI) stood at 159.98 during the first quarter of 2024, reflecting a 6.7 per cent increase compared to the corresponding period of the previous year.

The data also revealed a quarterly increase of 1.9 per cent when compared to the last three months of 2023. Breaking down the figures further, apartment prices rose by 6.6 per cent, while maisonette prices saw a slightly higher increase of 6.8 per cent during the same period.