Leading group calls on government to help boost property in Malta

  • 13 years ago
  • Uncategorized

A leading industry association in Malta has called on the government to help the struggling real estate industry in the country – a sector which is threatening the ongoing economic prosperity of Malta.

The Malta Developers’ Association (MDA) believe that the ‘Maltese construction industry… is facing a prolonged crisis that can send a ripple effect throughout the Maltese economy, if it is not managed in time and properly’.

Help needed for struggling property sector in Malta

Michael Falzon, chairman of the MDA said: “Over the last few years the Maltese property industry has been going through increasingly hard times, facing falling prices and an undetermined, but definitely large, stock of unsold properties.”

The MDA believes that after four years of negative growth in the country’s real estate sector, the next five years could be ‘even worse’.  According to the Central Bank of Malta, the share of the gross added value of the Gross Domestic Product of the construction industry has already fallen from 3.4 per cent in 2007 to 3.1 per cent in 2010.

In addition, the number of permits issued for the construction of properties has fallen dramatically from 11,343 in 2007 to 4,444 in 2010.

IMF believes property in Malta is a major concern

Concerns over the property market in Malta have also been raised by the International Monetary Fund (IMF) in its annual Malta report.  The IMF said that ‘real estate weakness’ is a major concern for Malta and that this market weakness ‘could turn out deeper and more protracted than expected as excess supply in segments of the real estate market and some debt overhang need to be worked off.’

The MDA believe that a collaborative international marketing campaign is needed in order to attract foreign investors to buy property in Malta.  Mr Falzon also believes that attracting retirement tourists is a positive way to help the nation’s ailing property market.

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