Can’t afford a house in Malta? Consider buying an island instead

With the rising cost of property in Malta, purchasing a home may feel increasingly out of reach for many. An island, perhaps, could be another option.

Recent data from Malta’s Residential Property Price Index (RPPI) highlights the ongoing upward trend in the country’s property market. According to the National Statistics Office, the RPPI for the second quarter of 2024 reached 161.34 (base year 2015: 100), reflecting a 6.8 per cent year-on-year increase. Apartment prices rose by 6.9 per cent, while maisonettes saw a 6.6 per cent increase. Overall, the RPPI, which includes houses, apartments, and maisonettes, grew by 7.0 per cent, indicating a robust property market in Malta, despite broader economic challenges.

Urban living in Malta comes at a premium, with one-bedroom apartments in prime locations typically priced between €200,000 and €300,000.

For those interested in more rural living, Gozo offers a more affordable alternative. A farmhouse on the island can cost around €350,000, while luxurious villas in scenic areas may be priced between €500,000 and €800,000.

Malta’s luxury real estate market continues to thrive, with developments such as Tigne Point and Portomaso offering high-end apartments priced between €800,000 and €2,000,000.

Given the high cost of property in Malta, you might wonder whether you could be better off buying an entire island elsewhere. Surprisingly, this might just be the case.

1. Blowfish Island – €72,235.23 

This 6-acre mangrove island is located near Punta Tigre, off Isla Popa in Panama’s Bocas del Toro province. It’s surrounded by coral reefs and offers the potential to build a dream vacation home. The island also holds rental income potential, with space for developing “several cabins”.

2. La Cornelia Island – €82,298.25 

Approximately one acre in size, this island in Nicaragua’s Las Isletas de Granada is filled with palm and mango trees. Although undeveloped, electricity is already available, and development is permitted, should the new owner choose to build.

3. Spuhn Island – €155,360.81 

Situated in Southeast Alaska, this two-acre island offers a remote retreat nestled among forests and mountains. Just 15 minutes from Auke Bay by boat, the island provides a charming escape into nature.

4. L’ile Jaune – €155,690.98 

Located an hour from Ottawa, Canada, this island on Lake Heney awaits a new owner to create their dream cottage. With crystal-clear waters and surrounding blue marble rocks, it offers an idyllic spot for a secluded getaway.

5. Whitewater Island – €228,139.18 

This uninhabited, 6.9-acre private island in Ontario’s Whitewater Lake offers deep and shallow water access, perfect for fishing and swimming. Located just ten minutes from Sudbury, it offers an ideal escape from city life.

While the Maltese property market remains strong, the rising costs can make homeownership seem out of reach for many. However, for those willing to venture beyond Malta, there are intriguing opportunities to own entire islands at a fraction of the price of some Maltese properties.