Malta’s property and construction market: Insights from a decade of analysis

This year marks the 10^th edition of the KPMG Construction Industry and Property Market Report, commissioned by the Malta Development Association, which will be unveiled at the upcoming National Property Conference on Friday 6 November.

Ten years of analysis cannot tell us exactly what the future will look like, but it helps us make better sense of Malta’s property and construction market. It allows us to look beyond short-term movements, understand how the bigger picture is changing, and ask more informed questions about the type of property and construction market Malta needs in the years ahead.

When the first report was published in 2017, one of its central aims was to establish a broader definition of the construction industry and provide a more structured assessment of its contribution to Malta’s economy. It also sought to complement the available statistics with direct insight from the people operating in the sector.

Ten editions later, the value of the exercise lies not only in the latest data point, but in our ability to place each year within a longer and more informed narrative. A single year can reflect temporary conditions. A decade of analysis makes it easier to identify which issues are cyclical, which have persisted, and which have gradually become more important. This longer perspective also helps us avoid drawing overly strong conclusions from one indicator or one period.

That is particularly important when looking at Malta’s property market. Economic performance, incomes, financing conditions, demographic change, housing supply, household preferences, regulation and the physical constraints of Malta’s built environment all interact to shape the market.

The KPMG Construction Industry and Property Market Report was never intended to remain static. Its scope and analytical depth have developed as the market itself has become more complex and as additional information has become available.

By 2024 and 2025, the report had developed a more structured treatment of permits, Promise of Sale agreements, final deeds, residential and commercial market movements, regional trends and stakeholder perspectives.

The 10^th edition takes this development further by bringing economic contribution, market activity, affordability, home ownership, stakeholder and public perspectives, investment considerations and longer-term strategic questions into one analytical framework.

Construction and real estate continue to make a substantial contribution to Malta’s economy. Our analysis looks beyond activity within the two sectors themselves and considers the employment, investment and wider economic activity supported across their supply chains.

The market continues to show resilience, but the conversation is becoming broader. Activity and economic contribution remain important, but the focus is increasingly shifting towards the quality, sustainability and long-term impact of development.

Affordability cannot be captured by one headline figure. The report presents a nuanced picture: Malta compares relatively favourably on several aggregate indicators, but access to home ownership remains much more challenging for certain individuals, particularly those on lower incomes or buying without significant savings or family support.

Price movements are similarly not uniform across the market. Our analysis identifies considerable variation by property type, size and region, reinforcing the importance of looking beyond national averages when assessing how Malta’s property market is evolving.

Residential asking prices and rents remain under upward pressure in several parts of the market. At the same time, differences between regions and property categories show that there is no single experience of Malta’s property market.

The next phase of the industry will need to place greater emphasis on quality.

Our stakeholder consultations point towards growing attention to construction standards, skills, infrastructure, sustainability, neighbourhood liveability and the overall character of Malta’s built environment.

Malta’s limited land also means that future development cannot be viewed in isolation. Regeneration, rehabilitation and better use of existing buildings are likely to become increasingly important alongside appropriately located new development.

Economic contribution and market activity remain important measures of the sector’s performance. But we also need to consider what development is delivering for Malta from an economic, social and environmental perspective

Reaching the 10^th edition is an opportunity to look back, but for me, its greater value lies in what it allows us to do next.

We now have a stronger property-market evidence base than we did when the first edition was prepared. However, gaps remain. The next phase should therefore continue moving towards more connected, transparent and decision-useful information.

The objective is not simply to produce more data. It is to improve the quality of the decisions made by households, businesses, investors, policymakers and the industry itself.