Issue link: https://maltatoday.uberflip.com/i/1532230
5 gozotoday | FRIDAY • 7 FEBRUARY 2025 NEWS FROM PAGE 1 This trend emerges from a discussion paper on the residential rental market in Gozo issued by the Gozo Regional Authority and the Housing Authority. The study shows that the private rent- al market has grown significantly in re- cent years, with rental prices increasing at a faster rate than in Malta, despite remaining lower overall. The report reveals that slightly more than half of long-term rental contracts in Gozo were priced below €700 per month in the second half of 2023. Another 38% of con- tracts ranged between €700 and €999, while just 9% exceeded €1,000 per month. Shared space rentals were even more affordable, with 89% of contracts priced under €300 per month. Overall, rents in Gozo remain cheaper than in Malta. Around 83% of rental con- tracts in Gozo were below €899, whereas in Malta, only 51% of contracts fell within this price range. Conversely, 40% of rental contracts in Malta exceeded €1,000, com- pared to just 9% in Gozo. Two- and three-bedroom apartments in Gozo had median monthly rents rang- ing from €550 in Munxar, the most af- fordable locality, to €834 in Xagħra. In comparison, St Paul's Bay – Malta's most populous rental locality – registered median rents of €750 for two-bedroom apartments and €900 for three-bedroom apartments. Rental prices in Gozo were roughly half those in Sliema, one of Malta's most ex- pensive rental areas. The number of registered rental con- tracts in Gozo has risen sharply, with 7,478 tenants recorded in 2023, more than doubling from 2,760 in 2020. The most popular rental locality in Gozo is Żebbuġ, including the seaside village of Marsalforn. Żebbuġ is also the only local- ity in Gozo to surpass 1,000 active rental contracts in 2023. Other high-demand areas include Victoria, Għajnsielem, Munxar (which includes Xlendi), and Xagħra, which together account for 68% of all rental contracts in Gozo. Sannat, Żebbuġ, and Qala have seen the largest increases in rental contracts since 2020. The number of registered leases in Sannat has tripled over this period, albeit from a relatively low base. Composition of rental stock Apartments make up the vast majority of rental properties in Gozo, accounting for 78% of all contracts in 2023. Houses and villas represented 15%, while maisonettes made up the remaining 7%. The rental stock is dominated by two- and three-bedroom units, which collectively account for 85% of rentals. The share of two-bedroom apart- ments has been increasing, making up 47% of Gozo's rental market, while three-bed- room units have seen a slight decline in relative share. Meanwhile, large properties with four or more bedrooms have remained stable at 4% of the rental market. Foreign workers drive demand The rental market in Gozo has expanded rapidly since the establishment of the rent register in 2020. The number of active rental leases in Gozo grew from 1,772 in 2020 to 4,260 in 2023, mirroring trends in Malta. Gozo's share of the national rental market has remained stable at around 7.1% since 2022, up from 6.4% in 2020. Foreign residents have been a major driv- er of demand. By 2021, nearly 70% of rent- ed residences in Gozo were occupied by non-Maltese tenants, reflecting increased foreign employment on the island. The highest concentration of rental properties is in Żebbuġ, where nearly 30% of the resi- dential stock consists of rental units. Munx- ar (20%) and Għajnsielem (17%) also have a significant share of rental properties, while Ta' Sannat and Kercem recorded the lowest proportions at 7.5% and 5.3%, respectively. Xaghra is the most expensive locality in Gozo Two- and three-bedroom apartments in Xaghra had a median monthly rent of €834