Rental prices for residential dwellings have gone up significantly over the past four years, spurred by a booming economy. The Central Bank of Malta noted that over a 10-year span, rents had risen by 40 per cent, with much of that increase happening after 2013. Increases happened across all regions, although they were more pronounced in the central and northern areas.
Rental prices are the highest in the central area, which comprises Sliema, St Julian's, Gżira and Valletta.
This is a highly sought after area by gaming company foreign employees who want to live close to their place of work and the entertainment hotspot of Paceville.
Renting a three-bedroomed flat in these localities is a third more expensive than a similar apartment in the northern area comprising Mellieħa and St Paul's Bay.
Rents in the north are on average 10% higher than those in the Three Cities and Marsascala in the south.
The CBM gave a number of reasons for the upward movement, including lower interest rates that encouraged people to buy property for rental purposes, the sale of passports to wealthy foreigners through the Individual Investor Programme and reforms to rental income tax laws.
A rising demand for residential property as accommodation for tourists and an increase in foreign workers, who are filling in the gaps in the jobs market created by Malta's above average economic growth, were other factors.