Last Updated on Thursday, 23 November, 2023 at 1:19 pm by Andre Camilleri
There were 54,978 active registered rental contracts at the end of June 2023, data provided by the Housing Authority shows.
The Housing Authority released an update on the Registered Rental Contracts for the first half of 2023.
“In line with the announcement earlier this year, this marks the first instance where the Housing Authority is presenting a bi-annual publication-a strategic step to ensure that the most up-to-date and comprehensive data are available to those navigating the landscape of the rental market in Malta,” it said.
“Over the past three years, the Housing Authority has provided a wealth of new data that reflects the rapidly evolving dynamics of the local rental sector. With active contracts standing at almost 55,000 at the end of June 2023, representing an increase of 24% compared to a year earlier, the Housing Authority recognises the significance and observable growth of this sector in meeting the diverse housing needs of the Maltese population.”
The data shows that as of June 2023, around 92% of active contracts were for long-term leases (i.e., duration of at least one year), with a further 7.5% classified as shared spaces. “Over time, the proportion of contracts for shared spaces has been rising, with this share standing at slightly less than 5% a year earlier. The share of short-term leases stood below 0.5% of all registered leases.”
“The analysis also sheds light on the characteristics of the rental sector. One of the identified trends is a clear demand for diversification in the property available on the market, with an increase to 7.5% of the registered contracts classified as shared spaces. Over time, the proportion of contracts for shared spaces has been rising, with this share standing at slightly less than 5% a year earlier. In addition to this, tenancy durations have continued to increase since the establishment of the register in 2020. Most notably, the number of tenancies with a duration longer than three years has increased to 12% in June 2023. The significance of longer tenancy durations cannot be overstated, particularly when considering the positive effects these bring in terms of stability and peace of mind for families and landlords alike. This is founded on generally positive relationships existing in the market,” it said.
Other key highlights of the report includes that St. Paul’s Bay remains the most popular locality, with around 8,200 registered contracts, followed by Sliema, Msida, Gzira, St Julian’s, and Marsascala;
The most expensive rents are found in Sliema, St Julians, and Swieqi. In St Paul’s Bay, the locality with the most registered contracts in Malta, the median monthly rent for a two-bedroom and three-bedroom apartment registered with the Housing Authority in the first half of 2023 stood at €700 and €850, respectively, the data shows.
It also shows that around 65% of shared space contracts have a monthly rent between €100 and €299.
A moderation in the increase of rent prices can be observed, it reads. “On average, rents rose by 5.5% in the first half of 2023, compared to an average growth rate of 6.9% registered in the second half of 2022.”
“This initiative is part of the Authority’s commitment to empower all stakeholders and policymakers with the tools they need to make informed decisions in a changing environment and to enhance transparency in this sector to foster a stable and professional rental market.”