The Malta Developers Association welcomed the publication of the Census of Population and Housing 2021 Report, [1] which it said, “confirms that property is the investment choice of Maltese and Gozitan families.”
In a statement on Saturday, the MDA pointed out that such reports provide a factual basis for market analysis and policy making.
According to the MDA, the National Statistics Office reported that the “overall condition of dwellings was predominantly good, thus also disproving the idea of abandoned places.”
However, this was not the case in Gozo, where the NSO reported that, the Gozo and Comino region was one of two regions that reported the lowest proportion of dwellings being in a “good state of repair.” It also recorded the highest percentages of dwellings in need of “serious repairs or being in a dilapidated state.”
Details of this and other Gozo statistics can be found by following the link above.
The MDA insisted that the fact that a quarter (81,613) of dwellings are grouped together as secondary, seasonally used or vacant “tends to give a negative perspective when in fact a deeper dive shows a positive picture of the property industry.”
“Unfortunately, as confirmed by the MDA in correspondence with the NSO, the latter is currently unable to separate between these three types of dwelling categories since the status of these dwellings could not always be determined during the fieldwork,” it said.
The MDA noted that the NSO explained “this situation is common in any Census, as the status of secondary, seasonally used or vacant dwellings is typically assigned based on information provided by neighbours or the condition of the dwellings themselves. Sometimes this can be highly subjective.”
“Therefore one must rely on the property market experience encountered by our members and the general public,” the MDA said.
The Association also insisted that, “it is a known fact that renting and buying existing property is becoming increasingly difficult. Thus, the idea of these dwellings being mostly vacant does not hold.”
On the other hand, it said, “the property market is the investment of choice of Maltese families which over the past years have opted to invest in second homes either for themselves (the predominance of such dwellings in Gozo confirms this) or to rent out to third parties for long lets (to foreigners working in Malta) or short ones (mainly through Airbnb and similar platforms).”
The MDA highlighted the fact that this has become a standard additional source of revenue for many families. Furthermore, since the last Census, a flat 15% tax has been introduced on rentals, thus discouraging the black economy, and having such property declared.
“Not only are around 80% of Maltese are homeowners, but now they also invest in a second and third property,” it said.
The Association also claimed that “vacant properties are definitely less of a factor today than before, and in most cases, it is directly related to long-winded Court disputes related to inheritance.”
“Further proving the resilience and good health of the property market is the fact that primary residences increased at a higher rate (41.2%) compared to secondary, seasonally used, or vacant dwellings (14.8%),” it said.
The MDA insisted that “this confirms that each generation of Maltese chooses to buy its residence and sees it as an investment.”
“It is also obvious that the profile of the Maltese family and the affordability of housing has an impact on the type of dwellings being developed. Now apartments are the most popular (48.4%), followed by maisonettes (23.9%), and terraced houses (22.7%),” it said.
File photo: Gozo News/Alain Salvary