Sliema was the most expensive locality to rent in last year

Sliema is Malta’s most expensive locality when it comes to apartments for rent, a Housing Authority report shows, as tenants pay an average of €1,218 and €1,439 for two-bedroom and three-bedroom apartments respectively.

The report, based on registered contracts dated until 2022, aimed at providing a comprehensive view of the private rental market. The Northern Harbour region is home to the most expensive rental apartments, with Saint Julian’s being the second most costly locality for tenants, as rents reach an average of €1,141 per month for two-bedroom apartments.

Gozo remains the cheapest region for those paying rent, with an average rent of €562 and €674 per month for a two-bedroom and three-bedroom apartment. Out of all localities, Munxar is the least costly, as an average rent of €495 per month for a two-bedroom apartment is the cheapest entry in the list.

In the Northern region, where the average rent for a two-bedroom apartment is €696, Naxxar is the most expensive locality for tenants, as average prices rise to €904 and €1,068 for two-bedroom and three-bedroom apartments. In this region, Mosta is the second most costly locality for those paying rent, which is followed by Mellieħa and Saint Paul’s Bay.

In the south of Malta, Fgura’s two-bedroom apartments are the cheapest option, with an average of €554 rent, which is followed by Paola (€581) and Żabbar (€646). Meanwhile, Marsascala (€716)is the most expensive region when it comes to renting two-bedroom apartments, followed by Żurrieq (€666) and Birżebbuġa (€597).

Irregularities surrounding shared spaces

The report also took note of two “irregularities” examined in the rental market, where firstly, the number of shared space contracts was notably low. “This is puzzling given the anecdotal evidence of widespread co-sharing arrangements by foreign workers that rely on this sector for accommodation,” flags the report. The Private Residential Leases Act's present rule for shared spaces, which is defined as a contract with a period of six months that cannot be renewed, may be the cause, according to the report. In order to take advantage of the more lenient regulatory requirements, the report adds, some landlords may decide to file contracts as long lets even when they are renting out shared spaces. 

The second anomaly concerns the disproportionately high proportion of long-term lease agreements,, with rentals that are less than €500. Particularly when compared to promoted listings by estate agents, the rents for these contracts are substantially lower than the going market rates and are instead more in line with the rentals paid for shared spaces. In fact, almost 90% of rents for shared spaces were below €500 in 2022.

This is tied to the first anomaly, the report says, in that some landlords have resorted to registering shared premises as long-term leases in order to get around the restrictive conditions. It was noted that these actions may artificially alter the rent distribution of long-term leases, creating the impression that rents are lower than they actually are.