Seven developers submit bids to build affordable homes
Apartments to be sold at 30% below market value
Seven development companies have submitted bids to build around 260 new apartments intended for sale at almost a third below the market value, the Foundation for Affordable Housing has said.
In a statement, the foundation – a joint venture between the church and state – said it had received 11 submissions from seven private bidders to build apartments across four sites that will be sold at 30% below market value.
Cast Renting Ltd, Vassallo Builders Ltd, A.M. Developments Ltd, Green Building Solutions Ltd, Bonnici Bros Services Ltd, Eclipse JV and JAJ Contractors Ltd have all submitted proposals for the design and construction of the housing units.
An evaluation committee composed of independent experts will now assess the proposals, measured against a criterion of quality, sustainability, and affordability.
Government-church plans to collaborate on building new homes were announced back in July, when the government said sites in Marsascala, Kirkop, Fgura and Ta’ Giorni in St Julian’s had been transferred to the foundation under a perpetual emphyteusis.
Some of the land had passed from the Church to the state in 1993.
Buyers' eligibility for the housing scheme is measured against their age and income, and is open to couples.
After 20 years, buyers will be offered to convert their temporary ownership to a perpetual one by paying the difference between the affordable and market price.
While being welcomed by Prime Minister Robert Abela and Archbishop Charles Scicluna, the initiative was not without its critics; the Malta Development Association (MDA) last month called the scheme “unaffordable speculation disguised as a social policy”.
The MDA said the move risks destabilising the property market and is unfair on those who bought their dwelling at the market rate, while arguing participating developers would see higher profit margins due to being given the land to develop for free.
Meanwhile, ADPD urged the government to “stick to its guns” on the initiative, calling the move “innovative”.