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February 05 2025 09:25:29 by PCLMedia
 
Since 2020, rental prices in Gozo have increased by an average of 5.9% per year, outpacing the 3.4% rise seen in Malta. Despite this faster growth, rents in Gozo continue to be significantly more affordable, remaining about half the cost of rents in some of Malta’s most expensive areas like Sliema.

This trend, revealed in a study by the Gozo Regional Authority and the Housing Authority, shows that while Gozo’s rental market is growing, it still offers lower prices overall compared to Malta. The rental market on the island has expanded considerably in recent years, with rental prices rising faster than those on the mainland.

Rents Below €899 in Gozo

According to the report, over 83% of rental contracts in Gozo are priced below €899, while only 51% of rental contracts in Malta fall within that range. In contrast, 40% of rental contracts in Malta exceed €1,000, compared to just 9% in Gozo.

In the second half of 2023, just over half of long-term rental contracts in Gozo were priced below €700 per month, with 38% falling between €700 and €999, and 9% above €1,000 per month. Shared space rentals were even more affordable, with 89% of contracts priced under €300 per month.

Xagħra is the Most Expensive Area in Gozo

Rental prices vary across Gozo, with two- and three-bedroom apartments typically renting for between €550 per month in Munxar, the most affordable locality, and €834 per month in Xagħra, the priciest area. By comparison, Malta’s St. Paul’s Bay—its largest rental market—sees median rents of €750 for two-bedroom apartments and €900 for three-bedroom apartments.

Rental prices in Gozo are about half those in Sliema, one of Malta’s most expensive rental areas.

Surge in Rental Contracts in Gozo

The number of rental contracts in Gozo has risen sharply, from 2,760 tenants in 2020 to 7,478 in 2023. Żebbuġ, including the seaside village of Marsalforn, is the most sought-after locality in Gozo, accounting for the largest share of rental contracts. Other high-demand areas include Victoria, Għajnsielem, Munxar (which includes Xlendi), and Xagħra, collectively representing 68% of the island’s rental market. Sannat, Żebbuġ, and Qala have seen the most notable increases in rental contracts since 2020.

Rental Market Composition

Apartments make up 78% of rental properties in Gozo, followed by houses and villas (15%) and maisonettes (7%). Two- and three-bedroom units dominate the rental market, making up 85% of rental contracts. The proportion of two-bedroom apartments has been rising, now representing 47% of the market, while three-bedroom units have seen a slight decline.

Foreign Tenants Drive Demand

Since the introduction of the rent register in 2020, Gozo’s rental market has expanded rapidly. The number of registered leases grew from 1,772 in 2020 to 4,260 in 2023, mirroring trends in Malta. Foreign residents are a major factor driving demand, with nearly 70% of rented homes in Gozo occupied by non-Maltese tenants by 2021.

Żebbuġ has the highest concentration of rental properties, with nearly 30% of residential units rented out. Other areas with a significant number of rentals include Munxar (20%) and Għajnsielem (17%), while areas like Ta’ Sannat and Kercem have the smallest share.

Social Housing in Gozo

Social housing accounts for just 4% of Malta’s total social housing stock, with only 270 properties leased for social accommodation in Gozo. The majority of these are located in Victoria, though privately leased properties are spread across the island. The average annual rent for social housing in Gozo is approximately €1,000.

The study also highlights that Gozo’s social housing is primarily allocated to residents who have lived on the island, challenging the idea that non-Gozitans dominate the social housing market.

In conclusion, the study underscores the importance of government oversight in regulating the housing market, ensuring adequate social housing availability, and providing assistance to tenants in pre-1995 rental contracts.
 

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