Real estate agents have remarked that every form of support given towards first-time property buyers counts, especially due to affordability becoming an issue in the property market.

This was said in respect to the Government’s announcement in Budget 2023 on Monday that first-time buyers will be granted €10,000 over 10 years to help with their loan repayments. The measure will cover acquisitions that took place from the start of 2022, and will work alongside local commercial banks that provide home loans.

Following this, WhosWho.mt contacted a number of real estate agents for their reactions to the news, particularly whether this will significantly assist youths in becoming owners of their own homes, or whether it will contribute to further increases in prices.

“Every drop counts. First-time buyers are the ones that struggle the most and so every form of help is positive,” Sapphire Real Estate Services Ltd Founder and Director Jane Chircop said, before adding that it is “definitely a good move”.

Frank Salt Real Estate Ltd Director Darren De Domenico

Frank Salt Real Estate Ltd Director Darren De Domenico agreed with Ms Chircop, saying: “This is a very positive incentive because affordability is not as much as it used to be, especially to those just entering the market. Therefore, the grant will offer some form of support”. Konrad Sultana, Branch Manager at Dhalia Real Estate Services was also in agreement, adding that “when we speak about first-time buyers, everything makes a difference, even the smallest amount”.

Mr Sultana remarked that “To people that are exactly on the limit of buying a property, this will prove to be very helpful”.

Real Agents CEO Justin Camilleri remarked that while the initiative will assist “a small number of people up to a certain budget,” a 10-year period “is a relatively long time” for €10,000 to be spread over.

Real Agents CEO Justin Camilleri

Overall, the respondents did not expect any additional benefits to be announced, with Mr Camilleri saying that “keeping first-time and second-time buyers is enough considering the world is going through a recession, along with other difficulties”.

“In general, the Government has extended the existing important support that will continue to fuel activity in the market, so overall, I am happy with what was said,” commented Mr De Domenico.

However, Ms Chircop remarked that there must be “greater focus on restoration”, rather than just development. Referring to the Irrestawra Darek and Irrestawra l-Faċċata schemes, which involved the Government bearing the financial cost of the restoration of homes instead of households.

“The Government had announced Irrestawra Darek, but there was the problem that youths did not end up benefitting from it that much, as they could not compete with bigger buyers,” she explained.

“More priority should be given to first-time buyers in this respect, particularly to give them the option to opt for townhouses over apartments, which will consequently also help the overall environment of the surrounding area. The idea is to preserve what we already have and hence preserve Malta’s identity and environment,” Ms Chircop said.

Sapphire Real Estate Services Ltd Founder and Director Jane Chircop

“At the end of the day, we sell homes, not just a house or an apartment. Greater focus on restoration will improve the quality of life, while also works in favour of the environment and reduces construction,” she added.

While Mr Sultana remarked that the existing initiatives are already “sufficient”, he suggested that we have reached a point where the Government “needs to incentivise property dealers that sell apartments with garages”.

“Community parking tends to take up a lot of space because families tend to have more than just one car. Therefore, greater focus has to be given to properties with existing garages,” he said.

Dhalia Real Estate Services Branch Manager Konrad Sultana

He also remarked that certain villages need to be protected, especially with property buyers often opting for more urban areas that are closer to their respective workplace. “If we protect areas like Qrendi, Xgħajra, Kalkara and others that are more rural in nature, the value of properties located there will be maintained because more people will be attracted to those areas. This is especially the case since people will often want to relocate to these areas to avoid being surrounded by apartments,” Mr Sultana added.

Ms Chircop also highlighted the insufficient system through which incentives are offered. “The problem is bureaucracy for so many incentives. Since we are in a digital era, I would have liked for more information on the incentives of reformation to be available online as a sort of one-stop-shop,” rather than being told to contact one agency for a particular incentive, and a different one for another, she said.

“If you simplify things, you will solve a number of problems,” she concluded.