Updated 1110
Malta Property Demand Remains Strong as Affordability Squeezes Buyers and Rents Rise
Malta’s property market continues to experience strong demand, but declining affordability is making home purchases increasingly challenging, reducing completed transactions in some segments. Meanwhile, rental demand exceeds supply, particularly for long-term accommodation, pushing rents higher as some properties shift to short-term tourist lets. The Central Bank of Malta’s Q3 2026 report highlights continued sector resilience, with 75% of construction and real estate businesses reporting increased activity and 70% expecting further growth. However, rising material and transport costs, alongside skilled labour shortages and wage pressures, remain key challenges. Despite these pressures, profitability remains resilient, with positive investment and employment expectations across the sector. (Maltatoday)
Caruana says Budget measures target businesses relying on low-wage labour
Finance Minister Clyde Caruana has defended Budget 2027 measures affecting third-country nationals (TCNs), saying they are intended to address an economic imbalance created by businesses relying on low-paid foreign workers rather than punish migrants. Speaking at a Labour Party event in Marsaxlokk, Caruana argued that some businesses were retaining profits while leaving the public to bear the costs of population growth and pressure on services and infrastructure. “The problem is not the people, wherever they come from,” he said, adding that the Government opposed profits made at the expense of workers or the environment. The measures include higher work permit fees, charges for childcare and monthly fees for using public transport or driving. Caruana pointed to €400 million in energy subsidies and tax cuts for small businesses, arguing that Government support must be matched by responsibility and a fairer distribution of economic gains. (Times of Malta)
PN proposes seasonal tourist ecotax rates
Opposition leader Alex Borg is expected to propose retaining the current €1.50 tourist ecotax during winter while supporting higher rates during the peak summer season in his Budget 2027 reaction speech. The proposal would apply the Government’s planned increases between May and October, while keeping existing rates and caps from November to April. Under Budget 2027, the ecotax on hotel accommodation will rise to €8 per adult per night, capped at €64, while short-let accommodation will face a €10 charge, capped at €80. The current rate is €1.50 per adult per night, with a €22.50 cap. The PN argues that higher winter charges would place additional pressure on tourism businesses during a period when many already reduce prices to remain competitive. The seasonal approach, it says, would better reflect the industry’s operating conditions while maintaining higher contributions during peak demand.The Government expects the increased ecotax to generate €214 million next year, compared with €21 million collected in 2025, amid concerns over tourism’s impact on infrastructure. (Maltatoday)
Lorin Scicluna acquitted of Lassana Cisse murder
Former Armed Forces of Malta soldier Lorin Scicluna has been acquitted of the murder of Lassana Cisse Souleymane following an 8-1 jury verdict on Sunday evening. The jury also found Scicluna not guilty of the attempted murder of three other men: Mohammed Jallow from The Gambia, Ibrahim Bah from Guinea and May Malimi from Chad. Cisse, a 42-year-old Ivorian national, was shot dead in Ħal Far, near Birżebbuġa, on 6 April 2019. The verdict followed almost two weeks of testimony examining the killing and the police investigation that followed. Jurors had retired at 11:45am on Sunday to consider nine charges against Scicluna. The case was described as Malta’s first alleged racially motivated murder. Francesco Fenech, 28, is expected to stand trial separately in connection with the incident. (The Malta Independent)
Moody’s flags spending and rule-of-law weaknesses in Malta
Credit rating agency Moody’s has maintained Malta’s A2 credit rating with a stable outlook, warning that rising government expenditure and institutional shortcomings continue to constrain the country’s creditworthiness. The agency expects the fiscal deficit to widen from 2.1% of GDP in 2025 to 2.8% in 2026, before easing to 2.7% in 2027. Continued energy subsidies, higher social security spending and public investment are contributing to the increase. Energy subsidies alone are projected to cost around €400 million next year. Despite these concerns, Moody’s forecast economic growth of 4.1% in 2026 and 3.7% in 2027, supported by domestic demand and sectors including tourism, financial services, remote gaming and IT. The agency also highlighted weaknesses in judicial independence, corruption control and public administration capacity, noting that these continue to limit Malta’s credit profile. While improvements in governance and the rule of law could support a future rating upgrade, a structural deterioration in public finances, particularly alongside weaker economic growth, could lead to a downgrade. (Maltatoday)