St Paul's Bay is the most popular locality for first-time buyers

St Paul's Bay is the most popular locality for people buying their first home, a Housing Authority report notes.

The report conducted by the Housing Authority is the result of an opportunity to better understand the profile of first-time buyers (FTBs) in Malta, following the introduction of a one-time grant of €10,000 spread over ten years, introduced in 2023.

The report analysed 3,103 applications, where 2,741 were applications received for FTBs that purchased their property in 2022, with a further 361 that signed their contract in 2023.

The most popular localities where FTBs purchased property were St Paul's Bay with 191 properties bought, followed by Żurrieq (185), Birkirkara (177), Mosta (166), and Żabbar (148).

Interestingly, the report found that almost half (48%) of FTBs purchased property in the same locality as their previous address, which is commonly their parent's residence. In fact, single beneficiaries were noted to prefer properties closer to their current address.

A little over half (52%) of FTBs purchased their property on their own. Regarding gender distribution, males comprised 55% of single beneficiaries, while females made up 45% of this group. The report also shows that 73% of FTBs that benefitted from the scheme
were between 25 and 34 years old.

Apartments are the most popular type of property for FTBs

The Housing Authority report indicates that apartments are the most common type of property purchased through the scheme, as 79% of them opted for apartments. "There are, however, some differences between single and joint beneficiaries," the report notes.

Only 65% of FTBs who were joint beneficiaries opted for apartments, as they showed a relatively higher preference for houses (18%) and maisonettes (15%). 

In terms of property finishes, there was a notable similarity between the two beneficiary categories. Around 74% of FTBs purchased properties that were already finished, while 24% acquired properties in shell form, and 2% chose to purchase properties that were still in the planning phase.

Joint beneficiaries opt for more expensive properties

Roughly half of FTBs purchased properties with values falling within the €150,000 to €250,000 range. Specifically, about 57% of single beneficiaries purchased homes in this price bracket, while only 37% of those buying jointly did the same.

An additional 23% of joint beneficiaries bought properties priced between €250,000 and €300,000. Overall, properties purchased by joint beneficiaries tended to be pricier than those bought by single beneficiaries. Approximately 34% of joint beneficiaries and 14% of single beneficiaries invested in properties valued over €300,000.

The report noted that properties in Gozo tended to be more affordable compared to those in Malta.