PRESS RELEASE 9th February, 2026
The MDA welcomes the comprehensive and data-driven insights shared by the Governor of the Central Bank of Malta, Alexander Demarco, on the state of the Maltese property market. We commend the Governor for his thoughtful analysis and clear articulation of trends that have shaped our sector over recent years.
Governor Demarco’s confirmation that the Maltese property market was undervalued over the past five years, and that this undervaluation is now diminishing as prices align closer to fundamental values, reflects a maturing and resilient real estate landscape. This observation, grounded in the Central Bank’s own valuation indicators, affirms the structural strength of Malta’s property sector and provides a robust platform for informed public debate, which is most of the time marred by unfounded perceptions fuelled by anecdotes on social media.
The Governor’s remarks show why real estate is the investment of choice of Maltese families and is essentially their pension fund, given the unfortunate, limited and illiquid state of the equity market.
For the first time, there is a compelling analysis on affordability, which, even on the political side from both Government and Opposition, has been limited only to headline prices. Instead of such a superficial analysis, the Governor bases himself on data which scientifically shows that, despite headline price increases, the ratio of property prices to income levels has been on a downward trend since 2009. In 2024, this metric reached levels comparable to 2005, indicating that, relative to earnings, housing remains within reach for many Maltese households.
Malta’s robust homeownership rates, including among younger cohorts, highlight the cultural significance and continued aspiration of homeownership on our islands. The fact that a vast majority of adults either own, co-own, or intend to purchase property is
a testament to enduring confidence in real estate as a path to household stability and wealth accumulation. It shows that the sector is NOT in a bubble as some would like us to believe, but on a sustained, historic upward trajectory.
The MDA recognises that challenges remain, particularly for segments of the population with constrained income, and concurs with the Governor’s view that facilitating broad-based access to social housing requires continued, thoughtful policy attention. However, the current assessment sends a reassuring signal that market fundamentals are strengthening and that the Maltese property sector can adapt without compromising long-term affordability.