Property in Malta is already extremely expensive considering the average salary is under €20,000. A recent study by market analysis’s Djar and EY found that the average asking price for a property is around €400,000 while the average sale price stands at €200,000.

Recent data shows that 3,203 permits for new dwellings were issued in the first four quarters of 2022, an increase of almost 60% when compared with the same period in 2021, although Stivala insisted “there are no new abandoned buildings”.

Stivala has now warned that developers are facing “a lot of pressure” to increase their property prices even further and that they’re concerned more people might be priced out of the market.

In this vein, he argued that while inflation is out of the government’s hands, it can certainly do more to clamp down on excess bureaucracy.

As an example, he said the Building and Construction Agency shouldn’t have to send developers’ method statements, architectural reports that detail how demolition and excavation works will take place, to another architect for vetting.

“This is causing months-long delays, which translated to more costs for us,” Stivala said. “If you go to a doctor for an operation, he doesn’t tell you to wait for him to get a permit from another doctor before he starts operating.”

“We aren’t calling for an end to method statements, and we’re in favour of professionalism and spot-checks on architects, but one shouldn’t have to wait four months to get the go-ahead from the authorities.”

“Let’s eliminate delays and useless costs. A four-month delay to a project costs developers several thousands of euro and our concern is that we will have to increase the price of apartments and people won’t be able to buy property.”

These regulations were introduced as part of a reform to the construction industry following several apartment collapses and the 2020 death of Miriam Pace after her Santa Venera home collapsed due to nearby construction works. 

A magisterial inquiry had found shortcomings in the project’s method statement, which was drafted by architect Roderick Camilleri, who was also a minority shareholder in the development.

Camilleri had declared the risk of adjacent buildings collapsing as “minimal”. 

In his interview, Stivala also warned that the economy will face “problems” in the months ahead unless the government makes Malta more competitive, drawing parallels to the period after the 2008 financial crisis. 

“The Maltese economy really regressed between 2008 and 2013, investment deteriorated and the country suffered as a result. We don’t want to return to that state which means we must safeguard the competitiveness of our industry.”

Do you think property in Malta is too expensive?