For example, “close to amenities, an exquisitely finished townhouse with two bedrooms and the possibility of a a third bedroom, a spacious living room, a fitted kitchen/diner, a bathroom, and a spare toilet. Price: $76,000.”

It’s annoying, but you cannot have it. Low living costs go hand-in-hand with low wages. Islanders fear being priced out of the market. I was told a bank clerk brings up a family on an annual salary of $12,000. Blue-collar jobs pay less.

Will E.U. entry result in changes? Not immediately. And it isn’t certain Malta will even join the E.U. There will be a referendum on joining later in 2003. Current opinion polls show islanders split 50-50 over the question. 

The Guardian News Service recently interviewed Malta’s finance minister whose Nationalist Party favors membership. He stated that Malta is bargaining to continue to limit foreign property ownership to one home per person for a transitional period. Those opposed to E.U. entry are concerned. “Half of Sicily will move here in 2004, and Germans will buy all the nice homes,” they say.

The real Malta 

First-time visitors, take note: Almost 370,000 people live on just 95 square miles of rocky territory. Leafing through brochures, you can be lulled into believing Malta is Paradise Island. Yes, the showpiece cities of Valletta and Mdina, the colorful luzzu boats in island harbors, and local festas with their processions and fireworks are as fascinating as the pictures promise. But don’t underestimate Malta’s density of population...it’s often hard judging where one town ends and another starts.

That’s not to say that Malta is completely built over. In the island’s extreme north, south, and around the former Arab capital of Mdina, scores of allotment-sized green fields are girdled by tiny walls of golden limestone. You’ll even see the occasional terraced vineyard. But that’s not the view from Valleta, Sliema, or St. Julians. Almost half of Malta’s landscape is continuously urban. 

Yet, although Malta is effectively a city state, few apartment residences are high-rise. With their flat roofs, houses look almost biblical. However, towns do sprawl on...and on...and on. Such limited space suggests good investment opportunities. But although the British are enthusiastic property buyers (many live here all-year-round), that’s not to say Malta will suit you as a place to settle. I enjoy the island’s friendly, unpretentious feel...but I recently received negative comments from one American lady. 

Like her, you may be overwhelmed by how jam-packed parts of Malta are (though I mentioned this in previous articles). However I disagree that the islands are expensive...or that property prices will “blow you away.”

Naturally, if you frequent five-star hotel restaurants and you will find it pricy. But do you think most locals hang out at the Hilton? On Gozo, a meal of pasta and shellfish in a waterfront restaurant cost me $7...wine included. In central Valletta, you’ll find rabbit casserole with salad and fries for $4.40. Delicious snack food such as pasties stuffed with cheese and vegetables cost 35 cents apiece. Numerous outlets serve $2.45 bacon, egg, and sausage breakfasts. And a half-pint of local Hopleaf beer will set you back $1.20.

Remember: No property tax

Private doctors (one contact’s brother is a medic) charge $13 to $20 for a visit...and they make house calls. I asked one realtor how much he paid for electricity and water. “Around Lm 100 ($238) a quarter,” he replied...just less than $960 annually. I double-checked on Gozo. Concensus here was that annual utility bills are $500 to $600 for apartments and $1,450 for villas with pools. And remember...there are no property taxes.

Detached villas are expensive, but most islanders live more modestly. If you’re happy with an apartment, terraced house, or maisonette, you can find a good deal. Siggiewi is a likeable village in a rural corner of southern Malta...very traditional with hole-in-the-wall bakeries and packed congregations for Sunday mass. Through Sara Grech’s agency, a ground-floor garden apartment with three bedrooms is $76,000. In the new part of the village, a three-bedroom terraced house with garage costs $131,000. 

Make the best of the foreign limit

Although foreigners can only buy houses valued at more than $120,000, this renovated house of character in Valletta for $113,000 isn’t off-limits. You could negotiate to include furniture to bring it up to minimum level. Available through Perry’s, it’s small with just one bedroom, but the St. Barbara Bastions location is special with views of the harbor and over to the Three Cities. 

And what about rentals? A monthly rent of $375 bags a furnished two-bedroom maisonette in Marsascala, a Maltese fishing village. A brand-new three-bedroom apartment in Msida, a harbor town next-door to Sliema, costs $475 per month. And a three-bedroom house of character in the Maltese citadel town of Mdina can be yours for $892 per month. Known as the “Silent City,” this was Malta’s capital in Arabic times. The balconies of the 400-year-old houses overlook the piazza.

Few sandy beaches

But I don’t want anybody to get false impressions, so let me spell out some truths. Although the crystal-clear sea is wonderful for diving, sandy beaches are few. Many roads need substantial upgrading. And cheap though fares are, buses are decrepit. Some are almost 50 years old. 

Pasta and passegiatas, yes, but there’s nothing like the level of stylishness encountered in many Italian cities. One realtor actually expressed concern that Americans might find Malta “too unsophisticated.” That said, it isn’t the boonies. You’ll find casinos, nightclubs, sailing clubs, and golf courses. Even Victoria, Gozo’s tiny capital, boasts two opera houses.

The lost paradise of Gozo

Green, fertile, and with plenty of open spaces, Gozo qualifies as a lost paradise. The contrast to Malta couldn’t be greater. Perched atop undulating hills, tranquil villages remain wrapped in the cloak of yesteryear. There are windmills...prehistoric temples...farmers riding horse-drawn traps...turkeys getting fattened for Christmas on flat-roofed houses… Church clocks are set at different times to confuse the devil. And from almost everywhere on the island, you can glimpse the sapphire Mediterranean.

A 25-minute ferry ride from Malta, minuscule Gozo is only 26 square miles in size. Its inhabitants number less than 30,000. Not that it’s lacking in amenities. Locals say you can buy everything you want in Victoria, the island’s citadel-capped main town. “But I go to Malta for curtain material,” said one lady. “I don’t have to. It’s just that there’s more choice.”

Island of love and honey

The tourist office calls Gozo the island of love and honey. No arguments with that. Legend tells that Calypso, a seductive Greek nymphet, kept Ulysses in a cave here for seven years. Honey? From a distance, villages and golden churches look to be carved of honeycomb. And you don’t have to worry about views disappearing. Planning laws bar any new construction outside village boundaries. Furthermore, apartment residences can’t be higher than three storys in inland villages, and four storys on the coast.

Agent Marie Grech says “demand has increased for all types of property” since my last visit. With locals reluctant to sell (passing down family property to children remains an important part of the culture), Gozitan farmhouses are definitely getting more scarce. 

She pointed out one large farmhouse that sold 10 years ago for $143,000. Five years later, it changed hands for $286,000. Now it’s valued at $524,000. However, less expensive farmhouses are still available. One quaint western village is Gharb, not far from beauty spots like the Azure Window and the Inland Sea. Here “il Mithna” (the Mill) is $155,000. It has no pool, but its flowery central courtyard is charming and the two double-sized bedrooms are both en-suite. Original external stairs lead to a sun terrace. 

Farmhouses aren’t being built anymore

San Lawrenz is also in Gozo’s far west. “Ta Karlotta” is a pretty farmhouse of golden limestone whose walls cascade with purple bougainvillea. Fully converted, it has three double bedrooms (one ensuite), a millroom that’s now a lounge, a large 180-square-foot kitchen/dining room, a laundry room, and terraces. All the rooms overlook a large sunny courtyard and a swimming pool. At $285,000, the price isn’t particularly cheap, but farmhouses aren’t being built any more. Prices can only rise...in another five years, it may be difficult finding anything remotely affordable.

I must stress that island farmhouses aren’t like those in Italy. Here they’re generally found in the heart of a village. Farm animals got herded back to villages at night, to be safely stowed away in the millroom. On Gozo, this practice continued until the 1950s.

Apartment prices are also rising, though you can still buy for $71,000. We viewed an apartment of around 600 square feet at Zebbug. Priced at $93,000, its balcony overlooks an unspoilt green valley, the north coast, and church-crowned villages. Calypso’s Cave and a couple of small coves are within walking distance. 

Top-range options

For investment potential, look where Maltese money goes. A $250,000 apartment might seem expensive to you, but locals invest in property rather than the stock market. Some of the most sought-after properties are in Sliema, Malta’s business and commercial center. Despite water on two sides, I don’t think it’s overly attractive but the Maltese like it. Back-street properties sell for prices locals can afford ($47,300 buys a completely furnished studio apartment), but sea views attract hefty premiums. On Sliema’s Tower Road seafront, two- and three-bedroom apartments average $205,000 to $312,000.

Few properties come with acreage

Be aware that few properties come with acreage. Anything with enough garden to install a swimming pool is considered large by Maltese standards. Villas of 1,500 to 2,000 square feet with pools go from $450,000 to upwards of $1 million. Gozitan villas cost a little less. Including a fitted kitchen and air-conditioning, $430,000 buys a four-bedroom villa with a pool, courtyards, a garage, and sea views. This 1,600-square-foot villa is at Ghasri village. 

Houses of character surface in Malta for $125,000 or less...though rarely at the coast. At this price, the island’s central towns are your best bet—places like Rabat of the early Christian catacombs, or Mosta with its huge domed church. Traditional farmhouse properties are becoming rare. On “the Big Island,” large converted farmhouses with pools often sell for over $800,000 Unless you’re buying for investment, I’d look to Gozo for these type of homes. 

Beside the Maltese seaside 

British visitors flock to Malta’s resort conurbation of Salina Bay / Qawra / Bugibba / St. Paul’s Bay. And not only for vacations—many buy here. Apartments for $75,000 to $100,000 are plentiful. It’s too built-up for me, but it might take your fancy. Moments away from Salina promenade, Salt’s have a three-bedroom maisonette with a patio for $76,000. 

Three miles along the promenade from Sliema is St. Julians, also a sizeable resort. Streets in old St. Julians, around Spinola Bay and also the new Portomaso development are worth considering, but neighboring Paceville is no place to live...not without earplugs anyway. This is Malta’s “vibrant” nightlife center. A realistic price for two-bedroom apartments in the better areas of St. Julians is $107,000. Just off Spinola Bay, Perrys have a brand-new three-bedroom apartment for $107,000.

Malta’s south coast has a more open feel. Many harbor inlets have been used since the days of the Phoenicians and Romans. Flanked by traditional townhouses, two of Malta’s most attractive old fishing villages in this area are Marsaxlokk and Marsascala. On this visit, I didn’t see apartments here for an overseas buyer’s price minimum, but they do exist. Through Legend, a three-bedroom ground-floor maisonette of approximately 2,150 square feet was $107,000. (Maisonettes are houses with one family living on the upper level and another family below).