Gozo Real Estate: A Wise Investment

Published: January 18, 2022

Current Property Market Conditions in Gozo

For many years the island of Gozo has been a popular getaway destination for Maltese locals and tourists alike due to its serene and tranquil environment. Small charming villages dot the island, with each one surrounded by unblemished countryside and farmland. This is in stark contrast to the increasingly urbanized and hectic nature of the main island of Malta across the narrow Gozo channel, resulting in high demand for properties in Gozo among the Maltese in recent years. An influx of immigrants to the Maltese islands, particularly from the UK and EU countries over the last 5-10 years, has also contributed to the higher demand for properties. Bearing in mind that Gozo is a tiny island measuring only 67 square kilometres, there is limited space for new housing units within the island’s designated development zones. For these reasons, the values of properties in Gozo have been steadily climbing for all property types, even during the COVID-19 pandemic.

The figure below presents the average asking price per square metre by property type in various regions of the Maltese islands, along with Year on Year changes, which clearly shows that the Gozo region registered an increase in asking prices for every property type – in line with expectations based on local market trends since 2010.  Furthermore, Gozo properties remain more affordable in comparison to other regions for the time being.

Source: Djar.com

The Only Way is Up

A savvy investor will, of course, be wondering whether the rising Gozo property prices can be sustained over the short and long term and the short answer is a resounding “YES”.  The primary reasons to be confident about the continued growth of the Gozo property market are listed hereunder.

• Rampant Construction in Malta
  The construction boom on the main island shows no signs of slowing down and this will continue to drive more Maltese residents to relocate to Gozo to benefit from living in a less stressful environment.
• Population Growth
  The overall population of the Maltese islands is expected to increase by 34% between 2019 and 2050. With Malta already being one of the most densely populated countries in the world, this will no doubt put further strain on infrastructure and quality of life on the main island.
• Remote Work Opportunities
  Every year more and more employers, both locally and internationally, are providing remote work opportunities that allow employees to relocate to more remote regions such as Gozo without requiring them to commute daily to work.
• Improved Transport Connections 
  In addition to the traditional ferry service that operates between Malta and Gozo, in 2021 two companies launched competing fast ferry services between Malta’s capital Valletta and Gozo. Furthermore, the Maltese government is committed to building a tunnel connecting the two islands over the coming years to accommodate vehicular traffic and the dramatic impact that this will have on pushing Gozo property prices upwards cannot be underestimated.

Finding Value in the Market

While the Gozo property market is expected to continue to grow for many years to come, those that choose to buy property in this region sooner rather than later will be able to maximize their return on investment, especially when buying direct from the owner to avoid costly agency fees. Here at Nadur Gozo Property, we offer interested buyers the opportunity to acquire such a property with minimal hassle direct from the owner at a reasonable price.