It may be a tiny island but demand for property in Malta is constantly increasing. Located just off the coast of Sicily, the country’s Mediterranean climate has wooed many tourists and home hunters. Malta managed to weather the recent financial crisis so much better than most European countries, though it's not as if Malta is in any way similar to about 99% of Europe. The strong local economy, thriving tourism industry and constant interest from international developers and investors alike meant that property values in Malta have been on the up for some time. Interestingly, the same cannot be said for average rent prices – precisely why Malta has a long-standing reputation as a less-than ideal prospect for buy-to-let investment. Short-term holiday lets are however in spectacular demand for much of the year and can prove to be quite lucrative in the right areas.