A panel discussion at the National Property Conference exposed the deep fissures within Malta's property sector, moving from calls for unity to a heated debate on the root causes of the islands' architectural and planning woes.
The conversation, which included developers, architects, and media representatives, revealed starkly different perspectives on where the system is failing. The most pointed criticism came from Michael Stivala, who placed the blame squarely on the planning authority and its regulations."
Today it's not the architect that plans, it's the lawyer," Mr Stivala argued. "The rules are arbitrary. They're so strict. Our architects are in strait jackets." He contended that the current system encourages frivolous appeals and that recent proposed reforms to the planning process had been misrepresented by the media.
This sentiment was challenged by Andre Pizzuto of the Kamra Tal-Periti, who highlighted a fundamental flaw. "The architects who have permission over design... there is no criteria for design," he stated. Perit Pizzuto advocated for the introduction of architectural merit as a key consideration for approval, allowing high-quality designs that might deviate from strict policy to be considered.
He also echoed the earlier keynote by Sandro Chetcuti, identifying "trust as one of the biggest issues we have."
Mark Lawrence opened the panel by grounding the discussion in public sentiment. "Let's not pretend... we have to accept, construction and works annoy people the most," he said, acknowledging widespread frustration. While pointing to recent reforms in licensing and contractor capacities as a "first step," he conceded that for the public, it often "is not enough."
The role of the media was a point of contention. While one panellist blamed the press for focusing on "one-offs," Herman Grech of The Times of Malta offered a different view."
I see the narrative and I see what people think," Mr Grech said. "When you see a Maltese streetscape that is being destroyed... soulless... let's not sell a lie." He clarified his position was not against construction, but against the loss of character and heritage.
The National Property Conference brought together the industry’s leading figures to navigate the complexities of a robust market. While celebrating the sector's massive economic contributions, the dialogue consistently returned to a pressing need for higher standards, greater trust, and a more collaborative path forward, with key addresses from Mr. Chetcuti and Prime Minister Robert Abela.
KPMG took the opportunity to present its findings in a report.
KPMG’s market soundbite for 2025 painted a picture of a "resilient and stable" sector with steady growth in residential deeds and permits. However, it also highlighted the dual nature of the market: rising property prices are "positive news for existing owners and investors, but more challenging for those striving to enter the market." Notably, the commercial rental market is expected to see a decline in 2025, correcting a previous supply glut.
The conference was grounded in hard data, with a report published by KPMG titled ‘Construction Industry and Property Market in 2025’ providing the quantitative foundation. The figures were undeniably significant:
- The construction industry and real estate activities are colossal economic drivers, contributing a combined €3.94 billion in value added to the Maltese economy when considering direct, indirect, and induced impacts.
- Directly, the sector accounts for 9 percent of Malta’s Gross Value Added (GVA), a figure that rises to 14 percent when indirect effects are included. This translates to roughly €14 of every €100 generated in the economy being linked to property and construction.
- The industry employs approximately 40,000 people, underscoring its role as a major employer.
The debate concluded, unsurprisingly, without clear resolution, but it did successfully frame the central conflict: a development industry feeling constrained by arbitrary rules, a profession calling for qualitative benchmarks, and a public - and media - increasingly fed up with the resulting urban environment. The path forward remains as contested as the skyline itself.
Main Image: