A closer analysis of rental properties listed in the KPMG database indicates the relative frequency of properties at different price points across the country.
When comparing the composition of the rental market between 2020 and 2021, one can note a continuance of a new trend that is in contrast with prior years. Monthly rental rates of between €400 to €800 continued to expand in proportion of total advertised properties (35% in 2021 against 29% in 2020). The proportion of properties priced at between €800 to €1,200 per month remained stable at 37%, while the proportion of properties priced above €1,200 per month declined again from 33% in 2020 to 27% in 2021.
One of the main factors which may have influenced the overall decline in apartment rental rates in 2021, similarly to 2020, is the impact of the COVID-19 pandemic on the tourism market. The pandemic resulted in a significant decline in overall demand for tourist accommodation, which in turn may have led to a significant number of short-let units shifting to the long-let market. This increase in supply, would have exerted downwards pressure on overall rental rates.
An analysis of the location of the properties in the database for 2021 shows that the highest proportion of office property can be found in the Northern Harbour region (50% of all listings), followed by the Central region (at 31%) — which is very similar to our 2020 database. With regard to retail properties, both these regions remain the dominant regions in proportion of listings, with slightly more such properties listed within the Central region. The Grand Harbour region represents a slightly greater proportion of office space than the South, however, the South region offers a substantially greater proportion of retail listings.
