In Malta, a small island nation in the Mediterranean, demand for rental apartments has risen over the last few years. The economy on the island has been booming with its very attractive lifestyle and favorable tax environment making it a magnet for foreigners and locals alike.
However, increasing demand for housing has created a shortage of affordable rental apartments, which is now becoming challenging for individuals and families to find a place to call home.
In this article, we explore the current situation of the rental market in Malta, focusing on affordable rental apartments. We discuss the key trends and predictions shaping the market, and what that means for the renter, landlord, and investor.
Current State of Rental Market in Malta:
There are currently not many cheap apartments available to rent, putting pressure on the market within Malta. Based on a report from the Malta National Statistics Office, there were 12.1% more rented dwellings in Malta.
However, there has not been an equivalent increase in the supply of rental apartments, meaning that many of the low-cost options are currently not available.
One-bedroom apartments in Malta can cost €800-€1,000 per month; three-bedroom apartments are more than €1,500-€2,000 per month. This is largely unaffordable for most individuals and families, especially those in the lower income brackets.
Key Trends Shaping the Rental Market in Malta:
A few key trends shaping the rental market in Malta:
● The Demand for Affordable Housing:
In Malta, there is a rising demand for affordable housing due to an increasing population and a scarcity of affordable apartments.
● Lack of Supply:
The supply of rental apartments in Malta does not match the rising demand; thus, the available affordable options are scarce.
● Rising Rents:
Rents in Malta are on the increase, making it more and more impossible for people and families to find a home.
● Interest in Alternatives:
Alternative accommodation is on the rise because people are beginning to look into alternative accommodation rather than apartments as their first preference.
Outlook of the Rental Apartments Market:
Considering the current trends and developments, here are some predictions for the future of the rental market in Malta:
● Continued shortage of affordable housing:
The demand for affordable housing in Malta will be sustained because of the rising population and scarce affordable apartments.
● Continued rising rents:
The rising population will continue pushing up the prices of rent in Malta, thereby making it more challenging for both individuals and families to afford a place to stay.
● Increasing demand for alternative accommodation:
Demand for shared accommodation and short-term lets will continue to rise.
● Increased investment in affordable housing:
There is bound to be a higher investment in affordable housing with government initiatives as well as investment from the private sector.
● Increased Sustainability and Energy Efficiency:
The rental market can be expected to focus much more on sustainability and energy efficiency driven by consumer and government policies and regulations.
Why Choose Solea Holiday Homes:
It can be a little daunting to navigate the property market, but with you, Soleaholiday will have a trusted partner. Our experienced team provides personalized guidance in finding the perfect property that suits your needs and budget.
We provide comprehensive market insights to help you make the right decisions, whether you are buying, selling, or renting/letting. At Soleaholiday, transparency, professionalism, and commitment to our clients are true beliefs.
Conclusion:
Malta's rental market is highly unaffordable. The demand is high, and the supply is low, which increases the rent. Housing becomes unaffordable.
There is a need for more investment in affordable housing, sustainability, and alternative options. Partnerships like Soleaholiday Homes can help navigate the complex market and find suitable solutions.
FAQs (Frequently Asked Questions):
How much is the Rent in Malta per month?
In Malta, the average monthly rent is €950 (single) and €1,240 (family of four), with additional cost round about €135-€375.
Why Rent in Malta is so high?
Rising numbers of tourists in Malta are the major cause for a rise in accommodation demand; locals, driven by this rising trend, keep purchasing more and more properties to reach out to more tourists.
Is it easy to Rent in Malta?
Renting in Malta is relatively easy. The process is straightforward, and many foreigners, professionals, and students are looking for places to rent.
How much is an average Apartment in Malta?
In Malta, the average price of an apartment is around €227,000. The price per square meter is around €3,000, but it can vary depending on the location and ranging from €1,500 to €5,500 per square meter.