A new Central Bank of Malta analysis suggests the residential property market is moving away from the acute shortage of supply seen in recent years, with more homes advertised for sale and properties taking longer to find a buyer.
What the Central Bank found
According to the Central Bank, the number of residential properties advertised for sale has increased significantly since late 2024, giving buyers more choice and reducing the competitive pressure that drove rapid price increases in prior years. In its own words, “the market appears to be transitioning towards more balanced conditions.”
Prices are still rising - just more slowly
This isn’t a price correction. The Residential Property Price Index was still up 6.7% in Q1 2026 compared to a year earlier - see our property prices page for the full reading - which the Central Bank characterises as above the long-term average but not “bubble spike” territory. Asking prices continue to rise, just at a slower pace than during the post-pandemic boom.
What’s supporting the market
The Central Bank points to continued demand support from population growth, employment, and “relatively robust mortgage activity” - see our mortgage guide for foreign buyers for current lending conditions - even as buyers become more selective given the wider choice now available to them.