Rental Investment Properties Available On The Market in 2023

Property investments in the form of rental investments are at an all-time high at the moment in Malta and Gozo. There has never been a better time to invest your money in a property for sale in Malta with a good certainty of positive returns. 

Whether you are a Maltese native or a foreign investor, understanding the local real estate market to determine the best industry to invest in can be difficult. Although the local rental market is buoyant, we recommend obtaining guidance from a specialised local estate agent. A professional real estate agent in Malta can assist you in purchasing the perfect property investment like buying a rental investment in Malta or Gozo. 

There are different segments of the Maltese property market that attract different kinds of rental investment options and offer different returns. 

Whatever your rental investment budget, you’ll almost certainly find something to work with, however, as with any investment, you should proceed with caution. Here are several separate categories to think about, along with their benefits and drawbacks:

Flat rental investment

Flat rental investments are by far the strongest property investment option in Malta or Gozo at present. The islands attract a huge number of foreigners. Such foreigners not only consist of holiday makers in search of the typical self-catering apartment, but also who are relocating here for work. Rental investments are most common in industries such as iGaming, Finance and others not to mention foreign and Gozitan students that choose to purposely proceed with their studies in Malta. 

The internet has given many the possibility of being independently employed, freelancing their way far from home. This apart from older travellers of pensionable age, who come frequently for holiday breaks or to examine the local scene with the intent of eventually relocating here as ex-pats. Rentals are also sought by the Maltese themselves, especially young students or young couples and single parents. Therefore, the options are myriad, whether for short or long-term rentals. Explore flats to let. 

Seafront apartment rental investment 

A large sprawling seafront apartment with Infinity pool will evidently attract a different client from a tiny studio flat located close to the university. 

Selecting your rental investment means you have to identify the best location for your target market, since this greatly influences the type of people you attract, the amount of money you can collect and the manageability of the property. View seafront apartments for sale.

Holiday rental investment

Buying property in Malta to let as a holiday rental obviously needs to be fully furnished. A fully furnished holiday rental investment needs to have fresh bed linens and toilet rolls, but apartments intended for locals can sometimes attract customers even when completely bare, since long-term rentals to locals mean they might already have previous furnishings they might want to relocate with.

Rental investments strategy

In reality, as for any investment, spreading the wealth may be the best strategy unless you are planning on buying real estate in Malta as property investment which eventually is where you plan on living in the future.  

If you are purely looking at rental property investments, purchasing more than one unit may be the smartest decision. Though it may entail more work in the sense of chasing different tenants for rent money as well as maintenance and upkeep of the property, it also serves as a safety net. 

If you have bought only one property to rent, the turnover of revenue will be bare during these days/weeks/months whereas if you have two apartments for rent, when one comes available the other will still be garnering rent.

Upmarket rental investment

It is also good to note that when one is working in the medium to upmarket rental market, the higher yields come in smaller packages (one and two bedroom apartments). 

This is because the initial layout of the investment is less whereas the demand is much higher than larger apartments thus rental prices will be higher per square metre and therefore the percentage of rental yield will be greater. With more apartments for rent in your portfolio there will obviously be more maintenance though this may also be resolved by hiring a property management company. Learn more about how you can maximise rental earnings from your investment.

Garage rental investment 

There are thousands of cars in Malta and many families own up to four vehicles. 

Although the island is small, the road network is pretty intense and compact and commuting to different places in any one day generally requires car transportation. Therefore, garage spaces are always much sought after and required. 

Although garage rental investment may not be as profitable as flat rentals, investing in garages saves you a lot of money. This is because garages do not need to be furnished and this of course saves you money from the onset. 

Single or multiple car garages are both popular. You may want to look into the option of investing in garage space for commercial vehicles which is an interesting alternative. 

Garage rental is also an option for renting out for productive activities such as those carried out by car mechanics, sprayers, carpenters, upholsterers and more. With this latter range of possibilities in mind, keep in mind noise levels, residential proximity and permits as may be required. Explore garages for sale as an investment.

Villa rental investment

Villa rentals are mostly sought after by foreigners who move to Malta in order to relocate on a longer term due to employment reasons. 

Others require villa rentals for short term occupancy linked to vacation, training, diplomacy, academia or projects such as those linked to the movie industry or cultural events. 

The villa rental business will require considerable investment and regular maintenance and upkeep in order to maintain the high standards linked to such a property and the price it would command. 

Taking advantage of the high demand due to a lack of hotel beds is a natural decision though one must note that there are several planning applications that will bring in a number of new hotels and more hotel beds to cater for this lack of accommodation. Read more about tips on investing in property.

Learn more about the 4 most popular rental investment properties in Malta.