Malta’s housing value triples to €88 billion in a decade, driven by land scarcity and speculation

The value of Malta’s dwellings has nearly tripled over the past decade, soaring from €30 billion in 2014 to €88 billion last year, according to new figures published by the National Statistics Office (NSO).

The analysis shows that the rise has been fuelled largely by a surge in land values, which have grown at a faster pace than construction costs. The NSO concluded that the ballooning in property values was driven by land scarcity, high demand for central locations, and speculative investment.

Between 2014 and 2024, construction costs rose from €5.6 billion to €14.6 billion—an increase of €9 billion, or 160%. But over the same period, the value of the land on which dwellings sit skyrocketed by €49.1 billion, or 200 per cent, reaching €73.7 billion.

The data suggests that land now accounts for around 83 per cent of a dwelling’s value, compared to 17% for construction. Three decades ago, land made up less than two-thirds of the value.

Apartments overtake townhouses

The NSO report highlights a shift in the housing market, with apartments now collectively valued higher than townhouses for the first time. In 2024, apartments were worth €39.5 billion compared to €33.2 billion for townhouses, even though apartments outnumber townhouses nearly three to one.

Townhouses had consistently been Malta’s most valuable dwellings over the decades, but the rapid expansion of apartment construction has altered the balance.

The NSO attributed the rising value of Malta’s building stock to multiple factors, including population growth, increased labour and material costs, and a surge in construction activity. It noted that policy changes since 2017, increased immigration, and the rise of short-term rentals had significantly boosted demand.

The report also referenced Malta’s post-EU accession building boom, with both private and public sector projects contributing to the surge.