Recently-published statistics issued by the Planning Authority have shown that the pandemic has slowed down, albeit by a little, the frenzied rate at which development permits are being issued. In 2020, development permits went back to 2016 levels after the sheer increases seen in 2018 and 2019.

But this is clearly not enough, seeing that the country is littered with construction sites as a result of the 2016-17 surge in permits. A quick look at these statistics indicate that the only real dampener on construction activity – despite its contribution of no more than 3.1% to the national GDP – is an economic crisis. In fact, permits dwindled after 2008, and picked up a steady pace again in 2015, as Labour continued to deregulate the sector, with the demerger between the PA and the Environment and Resources Authority paving the way for further development.

The development lobby’s monthly update on record property sales indicates a rare celebratory mood in these times. However, one wonders what percentage of those sales is down to buy-to-let investments which have become less attractive, especially after a number of foreign workers were forced to leave Malta as a result of the pandemic.

Moreover, it belies a short-sighted economic vision that does not guarantee sustainability for either country or lobby. The approach taken by successive administrations is to treat construction as a vehicle to generate economic growth across various sectors; property in Malta therefore is marketed as an investment for everyone, from young couples to obscure foreign businessmen.

It is always assumed that the value of property, and therefore of this investment, is bound to increase. The government’s policy has been that of stimulating property sales by offering various incentives to first-time or second-time buyers. The notion of property as an essential housing need completely discarded: no attempts have been made to reduce property prices to make housing available to everyone.

The result is that market forces are allowed to dictate freely, in line with the mantra of economic growth at all costs. However, in addition to the country looking like a permanent building site, those costs are significantly outweighing the benefits of this approach: a substantial chunk of Maltese citizens do not afford to buy a property on their own, with a spillover into the rent market which has also witnessed exorbitant price increases.

This system also ensures that profit remains the exclusive domain of those at the top of the food chain, whose investments are already secured and guaranteed against any downturn. In spite of the pandemic and the reduced demand for housing in Malta, projects such as that in Pembroke are still firmly in the pipeline with no regard for the laws of demand and supply.

With increased profits for the richer segments of the business class and government raking in more taxes, deficit ratios and GDP figures paint a positive picture on paper.

However, the economic growth to which construction contributes is not benefitting the country and its citizens – economically or otherwise.

Coupled with this is the lack of updated statistics about the number of vacant properties in Malta.

Well before the beginning of the second construction spree, the Census of 2011 had identified vacant properties at 19% of the housing stock while 13% were occupied seasonally.

Since then, over 60,000 permits for dwellings have been issued by the PA. It would be interesting to juxtapose those figures with actual population growth during these years, and the upcoming census will tell whether, between new properties and vacant lots, we are investing in the saturation of our property market, at a steep cost for social and environmental well-being.