Real estate agents have written to Prime Minister Robert Abela claiming discrimination as they were left alone in dealing with the COVID-19 backlash. 

They are insisting on receiving the same treatment as other industries which also felt the pinch.

In their letter, the 13 estate agents said they could not understand why they had been excluded from government assistance when their employees were facing the same predicament as those who received the benefits. 

“Although we still struggle to be recognised, our companies have been the backbone of Malta’s property industry for years and have contributed to Malta’s taxes in no small part.

"Our businesses, like many others that have rightly so been recognised, are at a complete standstill and we are severely restricted in our ability to carry out our services,” they wrote. 

They said there were some 2,000 employees on their payroll who still had to be paid at a time when business was at a standstill. 

Apart from employees, there are thousands of agents with families who depend on property sales for their livelihood. Many of these are self-employed and have not received a 'salary' in weeks.  

“It is evident that this crisis is here for the next few months and that the property industry will struggle to pick up the pieces. If there was ever a time when estate agents need to be protected, this is the time.

"They will be the ones who will have to help revive Malta’s property sector. Leaving our companies to drown is to potentially drown numerous landlords and businesses, who all depend on the success of this industry,” they told Abela as they implored him to include their sector in the list of those which qualify for assistance.

Zanzi Homes and Quicklets chief executive Steve Mercieca said when contacted that most of their offices were shut as sales reached rock-bottom. Letting was also slow, with Mercieca saying the rental market was “next to dead”.

Traffic on the firm’s property site was down by 80 per cent. 

“Real estate agencies have multiple people on their payroll. Apart from salaries that have to be paid at the end of each month, there are other ongoing monthly expenses such as rents, hosting, servers and other contractual commitments,” he said. 

Property agents are self-employed and do not receive a monthly salary but get paid through commissions on their sales. 

“Many of them must wait months, in some cases years for a service fee payment on work that they did ages ago. Many promises-of-sale are being extended and hardly anyone is willing to meet people for viewings.”

Mercieca said his company introduced virtual viewings, policies and procedures to make sure people were safe, but in reality, it was proving extremely hard to operate.

“Of course [we feel discriminated]. I mean everyone is suffering and we all need to carry the burden, but we have also paid huge amounts of taxes and contributed highly to Malta's economy.

"Our people cannot work. Although we have not been officially placed on lockdown, agents have families to feed or live with vulnerable people. We simply cannot understand on what grounds we were excluded.”

Asked what he was expecting he said: "nothing less and nothing more than other sectors that cannot operate. Many of our people are not managing to reach their commitments. Some of them have not received payment in months.”

Consultancy and advertising sector left out in the cold 

Consultancy firms and the advertising industry are also among the sectors excluded from receiving any form of assistance.

Jesmond Saliba, chairman of Corporate Id Group, an advisory firm in the media and creative industry, said the pinch was inevitable as clients paused media related activities to curtail parts of their operations.

He said his company was supporting corporate clients by not only helping them ride the current waves but also preparing for the rebound.

“We took the decision to support all our long-standing clients irrespective of their request to temporarily suspend the service. Obviously, this leads to strain on our income and even more on cash-flow,” he said. 

Saliba said the communications sector had not been taken into consideration when it comes to sectors that needed assistance. 

“It was probabaly a natural reaction to focus on businesses that literally had to shut down . I believe there should be an extension of the notion of ‘Public Service Obligation’ which is normally used to subsidise essential needs, to communications and journalism. We have to understand that ‘We Are All In This Together’ is more than just a hashtag.”

“As an industry we clearly explained clearly the significant way that this crisis is impacting our ventures and I am confident that due consideration will be given once the authorities revise, as I expect, their definition of affected industries,” he said. 

These concerns were mirrored by Peter-Jan Grech, the CEO and founder of BRND WGN, a brand consultancy firm.

“Unfortunately, we have been severely hit by the current state of play, and with the current negligible support from the government, we are being faced with very tough and unprecedented decisions.

"The government needs to take heed of the business community, instill market confidence and protect the country at large to be in a better position to recover in the future. Whilst I understand the government has to take tough decisions, I do believe that more can and should be done before it is too late.”

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