Malta’s accession to the European Union (EU) coupled up with the arrival of low-cost airlines foreign buyers have invested in old townhouses, restoration projects and seafront apartments, sparking a development boom and pushing up property prices. Anna Farrugia of Harlon Property told the newspaper that property prices rose 40% over two years, adding that "After years of the property market being static, it was too quick."

Anna Farrugia pointed out that Malta “has a good cultural mix and is a comfortable place for people from the UK to be." However she noted that the island’s small size and popularity is pushing up prices. "There's a lack of land and they won't allow building to go on in the green areas. Land is becoming very valuable." She further predicted that this will cause a 15% rise in prices over the next three or four years.

In turn, Vanessa Lupi of local agency Frank Salt told The Independent expressed doubts over Malta becoming overdeveloped like Spanish or Portuguese resorts. " Malta and Gozo can't be compared to places like Spain and Portugal. When people buy here, they buy much more than just the property, they buy the lifestyle."

Although prices have settled to an appreciation of around 10%, the situation could change. Vanessa Lupi added that "When you get low-cost airlines, you get people buying for investment. It's also easier for those who buy for their own purposes, since their holiday homes will be more accessible."

Residences on the waterfront at St Julian’s and Sliema sell from Lm65,000 for a one-bedroom apartment without a sea view, going up to Lm 325,000 for a frontline pad with three bedrooms and often a private yacht mooring. In turn, Gozo is believed to offer better prices where farmhouses are concerened. Unrestored farmhouses with two bedrooms have at times sold for Lm78,000.

The increasing properties prices in Malta recently sparked the concern of the Diocesan Commission. The commission voiced its concern about “the endemic and uncontrollable speculative practices in the property market”. Chairman Godfrey Leone Ganando called upon all political and social players to adopt this issue as a top priority for immediate concerted action if they truly believe in social inclusion and a sustainable standard of living.