Housing prices increase by 5% between 2023 and 2024

The residential property price index (RPPI) at the end of 2024 jumped 5% when compared to the previous year.

The National Statistics Office (NSO) said on Tuesday that at the end of 2024, the RPPI stood at 165.22.

The RPPI is an index which measures the rate at which prices of residential properties are changing over time. Only residential properties purchased by households are covered by the RPPI.

The figures published by the NSO indicate that property prices increased by 5% when compared to the same quarter in the previous year.

In 2024, the Housing Authority published a study on the affordability of properties.

Among its findings, the study shows that from 2000 to 2022, mortgage interest rates in Malta fell from 6.5% to 2.8%, theoretically easing the cost of borrowing.

However, this reduction in rates did not sufficiently offset the rapid increase in property prices, leading to a net decline in affordability​.

Among the possible factors driving up prices are economic growth, population increases, and foreign investment in Malta’s real estate market. Meanwhile, income growth has not kept pace with these rising costs.