Chinese buying Maltese property as affordability problems surge

Chinese nationals have become the dominant source of foreign demand for Maltese residential property, according to parliamentary data on Acquisition of Immovable Property (AIP) permits, marking a significant shift in the composition of the island’s non-resident housing market.

Figures published in Parliament by Finance Minister Clyde Caruana show that the number of permits issued to non-EU citizens rose from 379 in 2021 to a peak of 777 in 2024, before easing slightly to 703 in 2025.

Over the five years, the volume of non-EU property acquisitions more than doubled, indicating a sustained expansion rather than a temporary surge.

The growth has been driven by Chinese buyers.

Between 2021 and 2025, Chinese nationals accounted for more than 1,090 AIP permits – close to 40 per cent of all permits issued during the period. Annual figures rose from 83 in 2021 to more than 350 in both 2024 and 2025, a more than fourfold increase in just three years. No other nationality exhibits a comparable scale or trajectory.

Under Malta’s legal framework, AIP permits are required for most non-EU citizens purchasing property outside Special Designated Areas, making the figures a useful proxy for non-resident and investment-driven demand in the housing market.

By comparison, British nationals – historically prominent in Malta’s property sector – form a distant second tier. Their numbers have remained broadly stable at just over 50 cases a year, accounting for about 9% of the five-year total.

Indian nationals rank third, with steady growth to more than 60 cases annually in recent years, representing roughly 7% overall.

Other nationalities, including Serbian, Turkish and Ukrainian buyers, have contributed to the post-2022 expansion but on a far smaller scale.

Turkish and Ukrainian applications rose steadily through 2025, while Serbian demand peaked earlier before falling back. Collectively, however, these flows remain marginal compared to the scale of Chinese demand.

The data captures only part of the market.

Most foreign buyers typically acquire property within Special Designated Areas – high-end developments such as Mercury Towers, Shoreline and Tigné Point – where no AIP permit or ownership cap applies. As a result, official permit figures are likely to understate the true extent of foreign participation.

The concentration of demand has sharpened affordability concerns. As overseas investment increasingly targets Malta’s residential market, industry insiders warn that rising prices risk placing home ownership further out of reach for younger Maltese households.