Watch: MDA Head Expresses ‘Serious Concern’ At High Property Prices
Malta Development Association President Michael Stivala has expressed “serious concern” at expensive property prices and urged the government to cut unnecessary red tape.
In a recent discussion organised by the Malta Institute of Management, Stivala said that the MDA is concerned at the findings of a recent KPMG study which found that 95% of properties on the market are out of reach for young, single people earning an average income.
“Prices are a concern for us because, just like any other business, if our consumers cannot afford our product, it becomes an issue,” he pointed out.
“We build to sell or to rent. No one builds anything to keep it empty. This perception that we are just building without thinking is completely wrong, and most of our buildings are financed and reviewed by banks.”
He pointed out that the scarcity of land and rising construction costs – particularly since Covid and the Ukraine war – have led to an increase in property prices over the years.
Stivala urged the government to rethink certain regulations that are resulting in unnecessary construction delays, with consumers ultimately bearing the cost.
“There are two types of regulations. Some are necessary, such as the new building codes which the MDA pushed for, but we are against delays that result in costs which are passed on to consumers.”
“If your costs increase, you have to pass it on to your customer and we are against this. We need better regulation.”
He dismissed concerns that deregulation would incentivise developers to build shoddy properties.
“Many people say that we are against improving the quality of our buildings but it is actually in the industry’s interest to build better. If consumers lose trust in us, it would be a death sentence.”
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