MDA cites Central Bank findings to defend stability of Malta’s property market

The Malta Development Association has pointed to findings from the Central Bank of Malta’s latest annual report to argue that the local property market remains stable, with price movements driven by fundamentals rather than speculation.

In a press release issued on Monday (today), the Association referenced the Central Bank’s 2025 Annual Report, which indicated that property prices were slightly undervalued during the year.

According to the MDA, this assessment reflects what developers and investors have been experiencing on the ground, describing a market that remains “stable and grounded in real economic activity”.

The Central Bank’s report shows that Malta’s economy continued to expand at a solid pace in 2025, with real GDP growth reaching 4.0 per cent, supported largely by domestic demand and a strong services sector. This economic backdrop, the MDA argues, underpins continued demand for property and supports price stability.

The Association stressed that policy decisions affecting the sector should be based on “solid, scientific data”, including the Central Bank’s analysis as well as industry research, to ensure balanced outcomes that reflect market realities.

It added that the Bank’s findings indicate that price increases have been measured, rather than speculative, and are supported by steady demand and economic fundamentals. This, the MDA said, should provide reassurance to both homeowners and investors that the market remains on “solid foundations”.

At the same time, the Association called for continued efforts to strengthen incentives and reduce unnecessary bureaucracy, warning that development costs must be kept in check to ensure the market remains accessible.

The Central Bank also noted that Malta’s economic outlook remains subject to uncertainty, particularly due to external factors such as geopolitical tensions and their impact on inflation and growth.

The MDA said it will continue to represent the interests of property investors and buyers across Malta and Gozo, while contributing to the sector’s ongoing development.