The Mediterranean island of Malta and the Spanish Canary Islands are both popular destinations for holidaymakers and those looking to buy property overseas. Located off the coasts of Southern Europe and Northern Africa respectively, these archipelagos enjoy warm weather and beautiful beaches.
Their property markets have experienced significant growth in recent years, fuelled by tourism, foreign investment and appealing residency programmes.
This article compares the real estate markets in the Canary Islands versus Malta, examining property prices, types, buying processes and investment prospects. While they share similarities, notable differences emerge between the two island property markets.
The Canary Islands, located off the northwest coast of Africa, have seen steady growth in their property market in recent years. According to statistics from the College of Registrars, property prices in the Canary Islands rose by 7.1% in 2024 compared to the previous year, with a 16.4% increase in Q3, raising the price per square metre to €2,719.
The Canary Islands are made up of 7 main islands - Tenerife, Gran Canaria, Lanzarote, Fuerteventura, La Palma, La Gomera and El Hierro. Tenerife and Gran Canaria are the most populated and touristy islands, while the others cater more to travellers looking for a quieter experience.
Some factors driving the Canary Islands' property market growth include:
Malta has also seen significant growth in its real estate market over the past decade. Property prices have risen steadily at around 5-10% annually. The residential property index in Malta increased in 2024, with a 7% year-on-year rise in the second quarter of the year. Demand for apartments in Malta is especially strong, but the residential market overall has boomed in recent years.
Factors driving Malta's property boom include:
Popular areas for buying property in Malta include Sliema, St. Julians, Valletta, Mellieha, Marsascala and Gozo. The property market is dominated by apartments, though townhouses and villas are also available.
The average price per square metre for a property in the Canary Islands is €2,400, with prices on Gran Canaria slightly higher than on Tenerife.
The average cost of a property in Malta is €3,000 but there are big variations depending on the location, with property prices in Gozo cheaper than in Malta. Valletta is more expensive than, say, Zebbug or Fgura.
Residential properties in both markets can be found for similar prices, but properties on the higher end like villas are more expensive in Malta compared to the Canaries.
The process of buying property as a foreigner is currently relatively straightforward in both the Canary Islands and Malta.
In the Canaries, buyers need to get an NIE number, which serves as a foreigner ID number for tax purposes. A lawyer is typically hired to handle the conveyancing and paperwork.
In Malta, foreign buyers need to obtain an AIP permit before purchasing property. Hiring a real estate agent or lawyer is also essential.
Closing costs in both markets are around 10-15% of the purchase price. This includes taxes, legal fees and notary fees.
Both the Canary Islands and Malta offer appealing prospects for property investors:
The Canaries offer lower-priced properties in a tourist-driven market, but Malta's citizenship incentives and long-term fundamentals have spurred massive growth in the past decade. Both markets are appealing in their own right to investors.
The Canary Islands and Malta both have thriving property markets driven by their warm climates, tourism and investment migration programmes attracting foreigners. While apartments can be found at similar prices, Malta tends to have higher prices at the top end for premium villas and townhouses compared to the Canary Islands. Malta’s citizenship by investment scheme is a key driver not present in the Canaries. Both markets offer strong prospects for buyers, investors and renters.