Rental prices have increased ‘significantly’ since 2022

Rental prices in Gozo have increased significantly between 2022 and 2024, reflecting growing pressure on the island’s housing market despite its traditionally slower pace of development compared to mainland Malta. 

According to data published by Solidarjeta, tenants on Gozo have experienced some of the sharpest percentage increases in recent years, particularly in the two-bedroom rental sector.

In 2022, the average monthly rent for a two-bedroom apartment on Gozo stood at €562. By 2024, this figure had risen to €800. This represents an increase of 42.35 percent over a two-year period. 

While Gozo remains cheaper than many localities on the main island, the rate of increase has raised concerns among residents, housing advocates and workers whose incomes have not kept pace with rising costs. Gozo has long been viewed as a more affordable alternative to Malta, offering lower rents, a quieter lifestyle and closer community ties. However, Solidarjeta’s findings suggest that this gap is narrowing. 

The report shows that demand for rental properties on the island has grown steadily, driven by population movement, lifestyle migration and increased interest from remote workers and short-term residents.

The impact of rising rents is being felt most strongly by local tenants. Many residents rely on fixed or modest incomes, particularly those employed in public services, retail, education and tourism. A rise of more than forty percent in rental costs has placed additional strain on households already facing higher food, energy and transport expenses.

Housing advocates warn that affordability is becoming a critical issue on the island. While wages on Gozo tend to be lower than those on the main island, rental prices are increasing at a comparable rate. This imbalance risks pushing lower income tenants out of the private rental market, forcing them to seek alternative living arrangements or relocate entirely.

The Solidarjeta report highlights that the rise in rental prices on Gozo mirrors broader national trends but with unique local consequences. The island’s limited housing stock means that even small shifts in demand can have a pronounced effect on prices. As more properties are converted into short term rentals or retained for seasonal use, the number of long-term rental units available to residents continues to shrink.

Local councils and community groups have expressed concern about the social impact of these changes. Rising rents threaten the ability of young people to remain on the island and establish independent households. Families face increasing difficulty securing stable accommodation, while older residents on fixed pensions are particularly vulnerable to displacement.

The report also points to the lack of effective rent control measures in the private market. While recent national policies have aimed to introduce registration systems and transparency requirements, critics argue that these measures have not sufficiently addressed affordability or prevented sharp increases at lease renewal.

Landlords, on the other hand, cite rising maintenance costs, inflation and increased demand as factors behind higher rents. Some property owners argue that rental prices on Gozo were historically undervalued and are now adjusting to market conditions. However, tenant advocates counter that market driven adjustments without safeguards disproportionately harm those with the least financial flexibility.

The Solidarjeta findings underscore the need for targeted housing policy responses for Gozo. Experts suggest that solutions may include expanding affordable housing initiatives, incentivising long term rentals and strengthening tenant protections. Without intervention, the island risks losing residents who form the backbone of its workforce and community life.

As rental prices continue to rise, the question facing policymakers is whether Gozo can maintain its identity as a livable island for residents, not only a desirable destination for newcomers. The data from 2022 to 2024 indicates that the housing challenge on Gozo is no longer emerging but firmly established. How it is addressed in the coming years will shape the social and economic fabric of the island for decades to come.