With no natural resources, Malta’s construction industry has always been considered as one of the main motors of Malta’s economy.
Statistics compiled by the Central Bank show that while the population has been increasing at a rate of less than one per cent a year, even including migration, the growth rate of the building industry has by far surpassed the natural needs of the population.
During the past decade alone (2006-2016) the Planning Authority has issued more than 62,000 permits for new dwellings around the island.
The overwhelming majority of these – and the least costly – are apartment units, with permits numbering 53,132 in the last decade.
Since 2006, there have also been 5,404 permits for new maisonettes and 2,650 for terraced houses.
Permits for high-end properties, mainly villas and large farmhouses, numbered 1,260 over the same period.
All categories of property are this year being advertised on the market at double the price sellers were asking for them in 2000
Although most of these development permits have materialised into buildings, some of them are still on paper as developers sometimes wait until they sell them on plan or are able to obtain the right financing.
The statistics reveal that despite the perception that Malta is passing through a building boom, between 2005 and 2008, the planning authority issued more development permits than during the last four years.
In 2007 alone, more than 10,000 apartment units were given a permit, a record year for the last decade.
Yet, prices have been going up consistently, strengthening the long-held perception that the best investment one can make in Malta is in property.
According to a Central Bank index, which is based on advertised prices and not on the actual proceeds of sales, the price of property in Malta has more than doubled since the start of the millennium.
Terraced houses have appreciated the most, followed by maisonettes, apartments and villas.
All categories of property are this year being advertised on the market at double the price sellers were asking for them in 2000.
The high cost of property is creating a new phenomenon: after rents were liberalised a few years ago, many are opting to rent their place of residence instead of buying.
However, the recent influx of foreign workers on fat salaries, particularly in the gaming and financial services industries, is straining the affordability of rent particularly for low wage earners.
Development permits issued
Year | Apartments | Maisonettes | Terraced Houses | Others | Total |
2006 | 8,916 | 932 | 375 | 141 | 10,409 |
2007 | 10,252 | 696 | 257 | 138 | 11,343 |
2008 | 6,184 | 361 | 164 | 127 | 6,836 |
2009 | 4,616 | 400 | 182 | 100 | 5,298 |
2010 | 3,736 | 375 | 227 | 106 | 4,444 |
2011 | 3,276 | 401 | 191 | 87 | 3,995 |
2012 | 2,489 | 298 | 202 | 75 | 3,064 |
2013 | 2,062 | 350 | 209 | 84 | 2,705 |
2014 | 2,221 | 414 | 204 | 98 | 2,937 |
2015 | 3,019 | 471 | 342 | 115 | 3,947 |
2016 | 6,316 | 706 | 297 | 189 | 7,508 |
Source: Planning Authority