PN 'astonished' as prime minister downplays property affordability concerns

The Nationalist Party expressed astonishment on Tuesday after the prime minister appeared to downplay affordability concerns during a conference on property, arguing that more people than ever now own their homes.

Robert Abela made his remarks at a conference on the state of the construction industry and property market. As part of the conference, audit firm KPMG and the Malta Development Association issued a study which, among other things, showed that the average asking price for an apartment is now €414,600, around €40,000 higher than a year ago, despite the average apartment shrinking in size.

The PN in a statement noted that the study confirmed that young people and first-time buyers were among those suffering most from sharp property increases. It was estimated that a young couple on the minimum wage could only afford 2.2% of properties currently on the market – a steep drop from 5.7% just one year ago.

"It is astonishing that this morning – while addressing the same conference during which the study was presented – the prime minister continued to deny these well-established facts. Despite the study’s conclusions, he repeated his mantra that more people in Malta today are homeowners. According to him, statistics show that owner-occupancy stands at 82%, and claims that saying people can no longer afford to buy a home are merely a 'trend'" the PN said.

"The problem is that beyond statistics and numbers, the lived reality of Maltese and Gozitans is very different from that portrayed by the prime minister. Many families, particularly first-time buyers, are finding it increasingly difficult to purchase their first home, and an ever-growing number of young people are having to depend on financial help from their parents in order to buy a property."

The study, it said, also showed that property prices are rising at a much faster rate than wages, leaving more and more people struggling to keep up.

"With the significant increases in property prices highlighted in this study, the government’s grants announced in Budget 2026, supposedly intended to ease the burden on those wishing to buy a home but unable to afford one, have been rendered effectively meaningless."

These findings, the party said, echoed a survey published last week by Esprimi Malta, in which 95% of respondents said it was becoming increasingly difficult to afford a home today. The biggest barriers identified were high property prices, followed by difficulty obtaining a loan and the large amount required for an initial deposit.

"It is regrettable that the Labour Government continues to ignore these realities. While it remains paralysed in the face of rising living costs and soaring property prices, it dismisses entirely the solutions being put forward by the Opposition to address these crises, which are severely impacting the quality of life of many Maltese and Gozitan families."

Cost of living concerns

Ivan Bartolo, shadow minister for social and affordable housing and  Bernice Bonello, shadow minister for youth, also expressed concern about an increase in the cost of living.

They said the latest figures by the National Statistics Office confirmed that the prices of the most essential items for Maltese families were among those rising fastest, leaving households continually facing higher costs. "This is having negative effects not only on families but also on economic sectors where operating costs keep soaring while profits decline," they said.