Housing Authority Unveils Study about the Rental Market in Malta

Jul 12 2023

Transparency and Stability at the Core of Malta’s Rental Market Growth.

The Malta Housing Authority has released a groundbreaking study that sheds light on the private rental market in Malta. With a focus on registered contracts, this comprehensive analysis aims to bring transparency and stability to an increasingly vital sector. As the third annual publication of its kind, the report provides crucial insights into the evolving dynamics of the rental market in Malta.

A key finding of the study reveals a staggering 24% increase in active registered contracts, reaching a total of 47,879 by the end of 2022. This surge signifies a growing demand for rental properties, reflecting the importance of the sector in supporting social cohesion, economic growth, and the overall well-being of Maltese society.

The report highlights that nearly 95% of active contracts are long-term leases lasting at least one year. Additionally, 5% of contracts fall under the category of shared spaces, promoting affordable housing options. Surprisingly, short-term leases constitute less than 0.5% of the registered contracts, indicating a preference for stability among tenants.

Renewals play a significant role in rent stability, with an impressive 95% of contracts renewed in 2022 maintaining the same price. A total of 21,529 contracts were renewed during the year, most of them automatically and for a one-year period. This commitment to keeping rental prices consistent contributes to a sense of security for tenants.

Since the establishment of the rent register, the Housing Authority has recorded 9,500 multi-year contracts, with 7,061 still active by the end of 2022. The median duration of currently active multi-year contracts is three years, although some older contracts extend even longer. This longevity showcases the enduring nature of these agreements.

St. Paul’s Bay emerges as the most sought-after locality, boasting approximately 7,300 active leases in 2022. Following closely behind are Sliema, Msida, Gzira, and St. Julian’s, highlighting the appeal of these vibrant areas for renters. The Northern Harbour region claims the highest concentration of active leases at 44%, with the Northern region accounting for 25%. Gozo, while accounting for a smaller portion, still represents 7% of active leases.

With 80% of rental contracts being for apartments, the demand for multi-bedroom properties is evident. Two-bedroom and three-bedroom apartments make up the majority of registered contracts in terms of size, accommodating the needs of individuals and families alike.

The study also delves into rental prices, revealing that approximately 27% of new contracts signed between July and December 2022 had monthly rents ranging from €700 to €899. Further analysis shows that 29% of recent rents exceed €1,000 per month, while around 14% fall within the €500 or less range. Shared spaces, on the other hand, witness 60% of active leases in 2022 with monthly rents ranging from €100 to €299.

Indices based on the hedonic methodology indicate that rental prices have surpassed pre-COVID levels. Gradually increasing since mid-2021, rents experienced an average growth rate of 6.6% in the second half of 2022 compared to the same period in 2021.

In terms of regional variations, the report utilizes the hedonic model to estimate the monthly rent for apartments with long-term leases in 2022Q4 across Malta and Gozo. Localities such as Sliema, St. Julian’s, and Swieqi exhibit the highest rental prices, while Gozo generally offers more affordable options for tenants.

The study also includes a section that analyzes recently published statistics on the number of foreign workers in Malta and their impact on the rental market’s changing profile of demand. This information provides valuable insights into the evolving landscape of the rental market.

Matthew Zerafa, the CEO of the Housing Authority, emphasizes the significance of this study in a time when the private rental market in Malta is rapidly evolving. He states, “Comprehensive analysis and informed decision-making have never been as important as they are now.” As a testament to their commitment to providing timely information, the Housing Authority will publish updates of this study biannually starting from this year.

With the publication of this study, the Malta Housing Authority takes a giant stride towards establishing a balanced and sustainable rental market. This invaluable resource empowers both tenants and landlords with the knowledge needed to navigate the evolving rental landscape, ensuring a brighter future for all involved.

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6th Anniversary From Same-Sex Marriage Legalisation in Malta

Jul 12 2023

To celebrate the anniversary from when equal marriage rights were legalised in Malta, Parliamentary Secretary Rebecca Buttigieg and the Parliamentary Secretariat for Reforms released a video to celebrate the relationship of Glen and Sandro.

The couple had been in a relationship for 20 years together, but got married 3 years ago.

Same sex marriage was legalised in 2017, following the passage of legislation in Parliament on July 12th 2017. The bill was signed into law by President Marie-Louise Coleiro on the 1st of August 2017.

The couple open up about how they were able to finally celebrate their life together after the massive leap forward in equal rights in Malta.

Glen is of course known for his representation of Malta in the Eurovision Song Contest as well as being the winner of the 2021 edition of Mużika Mużika with his song ‘Harsa Biss’.

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Groups Condemn Hate Speech After EuroPride Dance Event

Jul 12 2023

A coalition of groups have issued a statement condemning ‘without reservation the degrading comments and the resulting hate speech spread online following the official EuroPride 2023 dance event held in Valletta last Saturday’.

‘Moreover, we request maturity and responsibility from persons with a wide-reaching audience who unfortunately choose to use their public platform to promote discrimination and prejudice against the LGBTIQ+ community.’

‘‘Dancing with Pride’ was an event designed with everyone in mind, an all ages-appropriate celebration championing diversity and people coming together from the LGBTIQ community, their families, and allies. It intended to continue pushing Malta and Gozo further in favour of the pillars of democracy. As diverse as society is on our islands, we should be encouraging inclusion and understanding with people of all ages and backgrounds, not closing off in a bubble ignoring the diverse realities that surround us.’

The groups called out public figures, politicians and others in the media who ‘insist on judging families who voluntarily join a music and dance event, simply because the organisers are members of the LGBTIQ+ community.

‘The derogatory comments imply that the LGBTIQ+ community should hide itself from certain categories of society. This attitude ignores the realities of LGBTIQ+ people and their families who form part of and contribute to society. Such a reaction is a reminder of why the need for Pride persists, and that despite the legal achievements, much work is left to be done to educate and change mentalities in the Maltese Islands.’

The statement was endorsed by ADITUS Foundation, ADPD, Allied Rainbow Communities, Drachma LGBTI, Drachma Parents, Equality Labour (Partit Laburista), LGBTI+ Gozo and MGRM.

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Minister Julia Farrugia Portelli Addresses Thalidomide Tragedy

Jul 12 2023

Maltese Minister for Inclusion, Julia Farrugia Portelli, delivered a speech in parliament that acknowledged a dark chapter in Malta’s history—the thalidomide tragedy. Minister Farrugia Portelli expressed the government’s commitment to addressing the long-standing injustice suffered by the victims and their families.

The Minister’s speech commenced by acknowledging the historical significance of the moment. She drew attention to a pivotal discourse held 61 years ago by Dom Mintoff, which initially highlighted the dangerous implications of the thalidomide drug. Mintoff’s warnings were tragically ignored, leading to the continued distribution of the medication and the subsequent birth of numerous children with severe disabilities. Minister Farrugia Portelli connected the present to the past, emphasizing the importance of learning from previous mistakes and taking responsibility for the welfare of those affected.

Minister Farrugia Portelli called for justice for the victims of the thalidomide tragedy. She highlighted the lack of apologies and compensation received by Maltese victims, both from the pharmaceutical company responsible for manufacturing the drug and from the Maltese government that allowed its importation. This lack of accountability was starkly contrasted with the actions of other European countries, which had taken steps to rectify the situation. The Minister’s plea demanded acknowledgement, empathy, and recompense for the victims who had endured a lifetime of suffering.

Minister Farrugia Portelli announced significant initiatives. Firstly, she stated that the government would provide €3 million as a full and final settlement to the surviving victims of thalidomide. This financial compensation aimed to acknowledge the immense hardships endured by the victims and their families. Additionally, the Minister revealed plans to establish an independent board led by medical experts to assess each individual case, determining the extent of disability caused by the drug. These measures represented the government’s dedication to ensuring justice and support for the victims.

Minister Farrugia Portelli recognized that no amount of compensation or apology could undo the profound impact of the thalidomide tragedy. However, she emphasized that the government’s actions sought to heal wounds, restore dignity, and rebuild trust. The Minister acknowledged the trauma and psychological suffering experienced by the victims, emphasizing the need for compassion and understanding. By taking responsibility for the past and pursuing comprehensive solutions, the Maltese government aimed to provide a glimmer of hope to those affected, said the Minister.

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