In 2023, the Maltese Government introduced an initiative aimed at providing a financial boost to first-time buyers (FTBs) in Malta. This scheme offered FTBs a one-time grant of €10,000, distributed over ten years, effectively equating to €1,000 annually. The primary objective of this scheme was to alleviate the financial burden on FTBs, thus empowering them to realize their dream of homeownership. Furthermore, this initiative has enabled the Housing Authority to glean invaluable insights into the demographic profile and preferences of FTBs in Malta.

Based on an extensive analysis of 3,103 applications, representing 4,590 individuals, successfully processed by the Housing Authority since the scheme’s inception, certain patterns and characteristics of FTBs have emerged. The majority of these applications, around 2,741, were submitted by FTBs who acquired their properties in 2022, while an additional 361 applicants completed their property purchases in 2023.

A noteworthy finding of the analysis is that approximately 92% of the applications qualified for the full grant amount of €1,000, while the remaining 8% received a reduced grant of €500, often when only one person in a couple met the FTB criteria. The median age of FTBs in Malta hovers around 30 years, aligning with Eurostat figures indicating the average age at which young people in the country typically leave their parental homes.

The report also revealed that slightly more than half of FTBs purchased their properties individually (single beneficiaries), accounting for 52% of all applications. In contrast, joint beneficiaries made up the remaining 48%. When breaking down the gender composition, males comprised 55% of single beneficiaries, with females constituting the remaining 45%.

FTBs demonstrated a diverse range of property preferences, with purchases spanning 66 different localities across Malta and Gozo. The top five preferred localities for FTBs in Malta were St. Paul’s Bay, Zurrieq, Birkirkara, Mosta, and Zabbar. While St. Paul’s Bay continued to be a hotspot for FTBs, it’s interesting to note that FTBs often gravitated toward slightly different localities than those commonly sought for rental purposes.

Approximately 7% of FTB property acquisitions were in Gozo, with Xaghra, Nadur, and Sannat emerging as the most sought-after localities on the island.

The data also revealed that FTBs often favored properties close to their current addresses, with 48% choosing to buy in the same locality as their previous residence. This preference was less pronounced among single beneficiaries, with 43% purchasing in their hometown, often their parents’ residence. Gozitan FTBs exhibited a particularly strong preference for staying on the island, with 72% choosing to purchase within Gozo.

Apartments were the most popular property type among FTBs, with 79% of single beneficiaries and 65% of joint beneficiaries opting for this style of residence. Notably, property finishes remained consistent, with roughly 74% of FTBs purchasing finished properties.

The analysis also revealed that nearly half of FTBs acquired properties within the €150,000 to €250,000 price range. Single beneficiaries, in particular, were more likely to purchase within this price bracket, while joint beneficiaries often purchased more expensive properties.

#MaltaDaily