Long-term and short-term property letting has increased by 35 per cent and 20 per cent over the past two years, according to Dhalia's specialist letting office.

The letting office will be opening for business on Sundays.

Dhalia's letting manager Benji Psaila said: "The primary reason behind this increase is foreigners wishing to relocate to Malta for business. With growing investment opportunities and a significant increase of good quality properties, the letting market will continue to boom."

"The demand for short-term letting has also seen a steady growth, mostly from overseas visitors looking for self-catering accommodation, foreigners working short-term contracts, locals looking for summer residences, and people who are refurbishing their homes or have sold their property."

Dhalia's chairman and chief executive officer Alan Camilleri said the increase in demand has outstripped the supply of properties available for letting. The prevailing market situation makes the buy-to-let offering an advantageous investment opportunity.

Properties for long lets (apartments, maisonettes and villas) are mostly located in Sliema, St Julian's, Swieqi, Madliena and Msida. In these areas, one can also find short-let sea-front apartments in prestigious blocks and building projects.

The most popular areas include St Paul's Bay, Xemxija, Buġibba, Qawra and Mellieħa. Luxury apartments and villas with pools for long lets are mostly available in the northern part of Malta. Places like Marsascala, Birżebbuġa and Marsaxlokk are becoming popular for long- and short-term lets.

Gozo has its own letting trends. These are mainly short-let requests by Maltese and foreigners looking for apartments, farmhouses and houses of character with pools for the holiday season.