First-time property buyers save €69 million in stamp duty in 2025

First-time and second-time property buyers saved around €69 million in stamp duty during the first nine months of 2025.

“Economic strength allows government to continue investing and provide a brighter future for families,” Prime Minister Robert Abela said at the conference organised by KPMG and Property Malta. He also said that more than 9,000 families benefited from the preferential stamp duty scheme, saving an average of €8,000 each.

Earlier today, a KPMG study revealed that property prices have increased by 59% since 2017, rising by approximately €14,800 each year. The report also noted that despite the explosion in prices, average apartments are becoming smaller.

The study showed that property price growth has substantially outpaced income growth. The price-to-income ratio is expected to rise from 14.0 in 2024 to 14.5 in 2025, indicating that median property prices have increased faster than median income growth.

According to the report, access to homeownership is becoming increasingly linked to family wealth, as more than a third of first-time buyers must rely on parental donations or other forms of family assistance to enter the market.

The Prime Minister spoke of a number of government schemes designed to help people become homeowners. He said the budget expanded the equity sharing scheme, lowering the eligible age from 30 to 25 years.

Under this scheme, the government provides half of the property sum, which buyers must redeem within 20 years. The property limit has been raised to €350,000.

Other schemes include a €10,000 grant for first-time buyers, grants for those investing in urban conservation areas, and VAT refunds for property renovation. Buyers investing in energy-efficient properties with sustainable practices can receive grants of up to €9,000.

Abela referred to a Central Bank of Malta study showing that only a quarter of homeowners in Malta still have a loan to pay off, compared to three-quarters in Europe. He also noted that two-thirds of those with the lowest income are homeowners in Malta, compared to half in Europe.

The Prime Minister emphasised the country’s economic performance, saying that Eurostat statistics show the average wage has increased by more than €6,600 per year over the last five years.

He added that the International Monetary Fund predicts Malta will have the most dynamic economy in Europe by 2030.

According to the report, both residential permits and final deeds of sale registered steady growth. A total of 8,716 residential units were approved in 2024, an increase of 7.4% over 2023, with permit numbers expected to surpass this in 2025.

The rental market remains driven primarily by sustained demand from foreign workers. The largest share of rented homes now exceeds €1,200 per month, increasing to 60.2% of all listings in 2025 from 55.5% in 2024.

The report highlights that construction and real estate are vital to Malta’s prosperity, making up about 9% of its Gross Value Added. In 2024, the building industry is expected to generate around €3 billion, including direct and indirect effects. It also showed that the construction industry faces severe labour constraints due to a shortage of skilled local workers.

Minister for Justice and Construction Sector Reform Jonathan Attard described as historic the work leading to the creation of the first National Building and Construction Code, which will introduce clear and enforceable standards for safety, sustainability and quality.

He spoke about the government’s vision to transform the construction and property sector. “Progress cannot be measured only by numbers, but by quality, security, sustainability and transparency,” Attard said.