Malta amongst cheapest countries in Europe to buy a house

Despite housing affordability challenges being a hot topic for discussion in Malta, a Eurostat report reveals that the island nation is among the cheapest countries in Europe to buy property.

This is in stark contrast to the narrative of skyrocketing house prices making home ownership increasingly unattainable for many Maltese residents.

However, while the report positions Malta favourably in terms of affordability compared to other European nations, it also highlights ongoing local struggles with housing costs.

Most Maltese own their homes, but affordability remains a concern

Malta has one of the highest rates of homeownership in Europe, with 75 per cent of residents owning their homes and only 25 per cent renting.

According to an EU-SILC annual panel survey on 2023 which gathered information on the income and living conditions of private households in Malta and Gozo, 50 per cent of homeowners were outright owners. This means they either never had a mortgage on their main dwelling or have fully repaid their debt.

According to another survey, 24.4 per cent of Maltese residents describe housing costs as a “heavy burden,” while 56.5 per cent consider them a “slight burden.”

Only 19.1 per cent said housing costs were not burdensome at all. While this indicates that many manage their housing expenses, the steep rise in property prices still affects a significant portion of the population.

How do Malta’s property price increases compare to Europe?

A Eurostat report shows that Malta has not seen the same dramatic property price increases as some of its EU counterparts.

Between 2010 and the first quarter of 2024, Maltese real estate prices rose by 78 per cent, significantly higher than the EU average increase of 48 per cent over the same period. By comparison, property prices in Estonia surged by 223 per cent, while Hungary saw a 207 per cent increase. 

This relatively moderate growth in property prices positions Malta among the more affordable countries for purchasing homes, alongside nations like Bulgaria and Poland, where costs are substantially below the EU average.

Meanwhile, Ireland and Switzerland top the list as the most expensive countries to buy property.

The type of housing plays a significant role in affordability and preferences. Malta has one of the highest shares of flats in Europe, with 63 per cent.

The remaining housing stock in Malta largely consists of semi-detached and terraced houses, which make up 36.1 per cent of the market, as of 2020.