Malta Commercial Real Estate Report: 2024 vs. 2025

This market analysis synthesizes proprietary transaction data from QLC Real Estate's 2024-2025 portfolio with broader economic indicators from authoritative bodies, including the Central Bank of Malta, National Statistics Office (NSO), and Fitch Ratings.
 

Executive Summary
 

The commercial real estate landscape has shifted from a period of rapid recovery in 2024 to one of sustainable growth and sector-specific consolidation in 2025. This report provides a direct comparison of the last two years, highlighting the "Flight to Quality" that has defined the market.
 

Key Trends (2024 vs. 2025):
 

• Volume Growth: The market was more active in 2025, with a 10.22% increase in the number of transactions closed compared to 2024.
• Value Appreciation: Total transaction value rose by 7.23%, indicating that deal sizes are growing alongside volume.
• Sector Divergence: While Retail and Hospitality saw double-digit price growth, the Industrial and Office sectors experienced a recalibration, favoring premium stock over generic units.
   

Market Performance: Year-Over-Year Analysis
 

Comparing 2025 directly against 2024 reveals a market that is maturing.
 

• Transaction Volume: +10.22% (More deals closed in 2025).
• Transaction Value: +7.23% (Higher total market turnover).
   

Analyst Note: The concurrent rise in both volume and value confirms a healthy, active market. Unlike 2024, which was characterized by volatility, 2025 has established a stable baseline for growth.

 

Sector Deep Dive: 2024 vs. 2025 Pricing

 

The following breakdown compares the Average Rent per Square Meter between the two years.
 

Hospitality: The Star Performer

• 2024 Avg: €211 / sqm
• 2025 Avg: €285 / sqm
• Change: +35%
• Insight: A record tourism year in 2025 drove aggressive demand for Guest Houses and Boutique Hotels, particularly in Valletta and St. Julian's.
   

Retail: Tourism-Led Growth

• 2024 Avg: €205 / sqm
• 2025 Avg: €238 / sqm
• Change: +16%
• Insight: High-street retail in tourist hubs outperformed neighborhood retail, correlating with NSO data on visitor spending.
   

Offices: Consolidation

• 2024 Avg: €232 / sqm
• 2025 Avg: €225 / sqm
• Change: -3%
• Insight: The slight dip in the national average masks the reality: Grade A offices in Sliema/St. Julian's appreciated, while secondary stock in peripheral areas saw price corrections, dragging the average down.
   

Industrial: Supply Mix Shift

• 2024 Avg: €167 / sqm
• 2025 Avg: €133 / sqm
• Change: -20%
• Insight: This decrease is largely due to a change in the mix of transactions. 2025 saw more large-format warehousing deals (which command lower rates per sqm) compared to the smaller garage units traded in 2024.
   

Location Spotlight: The "Golden Mile" vs. Emerging Hubs

 

A direct look at how prime office rents changed in key localities.

 

Location	2024 Avg (€/sqm)	2025 Avg (€/sqm)	Trend
St. Julian's	€262	€298	↗ Premium Growth
Sliema	€255	€277	↗ Steady Rise
Gzira	€198	€211	↗ Crossing Threshold
Qormi	€158	€154	➡ Stable

Key Takeaway: The gap between the "Golden Mile" (St. Julian's/Sliema) and the rest of the market widened in 2025. Tenants are willing to pay a significant premium for the absolute best locations.

 

Macroeconomic Drivers

 

• Fitch Ratings (A+): Affirmed in late 2025, underpinning investor confidence.
• Malta Development Bank: Continued support for SME financing helped sustain transaction volume in the mid-market.
   

Conclusion & 2026 Outlook

 

The data from 2025 confirms that the "post-recovery" phase is over. We are now in a growth cycle defined by asset quality.

 

• For Landlords: The 35% jump in Hospitality rents and the continued rise in Prime Office rents (€298/sqm) signal where the value lies. Upgrading assets is no longer optional.
• For Tenants: With volume up 10%, competition for space is increasing. In prime sectors like Retail and St. Julian's Offices, hesitation will lead to missed opportunities.

 

Looking for the perfect commercial space or an investment opportunity?

 

Leverage our data-driven approach to find the right property.

 

Contact QLC Real Estate on +356 7937 1629 or [email protected]