Property Malta Foundation Chairman Sandro Chetcuti has appealed to the Government for the sensible revision of local plans, if Malta is to work on its vision for the next 25 years. 

This was highlighted during the launch of another edition of the Construction Industry and Property Market Report 2024 by the Malta Development Association (MDA), supported by Property Malta and in collaboration with KPMG in Malta. 

During his welcome address of the National Property Conference, Mr Chetcuti highlighted that, despite the challenges, property remains the best investment one can make on a small island like Malta.  

However, he expressed frustration, stating that it "saddens and angers" him when decisions are made hastily, leading to preventable mistakes. "Serious errors have been made that negatively impact the feel-good factor and have caused, justified, public outrage," he remarked.

That is why, he emphasised, the Government should take a holistic approach and learn “from the mistakes of the past.” Therefore, he also called for more transparent, streamlined and efficient procedures and less bureaucracy. 

During his speech, he also called on the Government to implement more “aggressive” incentives to support first-time buyers and vulnerable individuals.  

“We have a gem of a country with immense potential. Let’s take care of it. A strong economy alone is not enough— wellbeing is far more important,” he emphasised. 

Sandro Chetcuti was a major player of Malta's property industry, and is no stranger to the drama surrounding the sector. The former President and Founder of the Malta Developers Association is credited with being a major consolidating figure within the construction industry, but has faced strong criticism for representing the interests of developers at a time when the industry generated wealth but placed considerable strain on the quality of life of Malta's residents. 

In his concluding remarks, he expressed his love for the country, explaining that this is why he sees little value in mere criticism or finger-pointing. Instead, he made an appeal for unity and collaboration, urging everyone to work together for the nation’s future.

Somewhat in agreement with Mr Chetcuti, Prime Minister Robert Abela, who also spoke at the conference, commented that if he had to ask himself whether local plans address current realities, “then the answer would be no.”

The Prime Minister did not outline what the revision of local plans would entail other than it being discussed with stakeholders in the industry. 

He also raised the question of whether a local plan revision should be implemented nationwide or phased in gradually for specific property types or geographical zones. Here, he made reference to Marsa, which had its local plans revised as part of regeneration efforts. 

Additionally, he remarked that while some decisions might be “controversial, postponing decision making does not reflect good governance.”

‘Architects have been almost reduced to clerks’ 

Bureaucracy and vision were the key themes behind the first part of the conference starting off with Mr Chetcuti’s appeal and continuing throughout a heated panel titled: Building Tomorrow: ‘Navigating Challenges, Seizing Opportunities’ 

Sitting on the panel were Politician and Activist Arnold Cassola, Stivala Group Chairman and CEO and MDA President Michael Stivala, MDA CEO Leon Chetcuti, Din l-Art Helwa President Alex Torpiano and Change Management Expert Rebecca Dalli Gonzi, who agreed that the industry needs stricter regulation, a defined vision for the island, and forward looking planning. 

Michael Stivala, in a pointed remark, commented that because of bureaucracy architects are spending more time in the office managing paperwork than fulfilling their duties. “Architects have almost been reduced to clerks, leaving many feeling frustrated with their profession,” he stated.

When asked whether the added bureaucracy effectively addresses potential issues and enhances accountability for developers, he promptly responded, “papers don’t control anything — they’re just there to point fingers.”  

He highlighted that bureaucracy is especially frustrating because it yields no tangible results and only adds to costs. 

Mr. Chetcuti remarked that such bureaucratic processes are burdening developers with increased expenses, ultimately failing to deliver any real added value.

Furthermore, he stated that people in the industry are getting fed up with these issues, rendering them to work half-heartedly. 

Meanwhile, Prof. Torpiano, while acknowledging that some bureaucracy could be reduced, noted that the issue of cost implications cannot be resolved solely by eliminating bureaucracy. Instead, developers should focus on whether their business models will remain sustainable in the long term.  

“Do we have any guarantees that the number of residents renting properties in Malta will remain stable in the coming years? ‘Sustainability’ is a nice term, but in the construction industry, we must ask ourselves whether what we are doing today will still be viable in the future,” he remarked.

Prof. Cassola highlighted the need for a carrying capacity study to understand how much Malta is able to accommodate. Furthermore, he believes that a proper moratorium is needed on building new hotels and high rise buildings. 

Mr Stivala pointed out that while there are a lot of different options on the table, solutions are needed to be able to address the issues. “The solutions to the issues mentioned by Prof. Cassola can only become a reality when we have a clear vision for the country.”

He added that as a country, Malta finds itself at a crossroads and he too agreed with Prof. Torpiano when he cited future occupancy rates for tenants. 

They reiterated that it is crucial that whatever direction Malta takes in the future, more long-term planning is needed.

Throughout the discussion, the panel highlighted “knee-jerk reaction” laws that often lead to more confusion rather than regulation. Simultaneously, Prof. Torpiano pointed out that, on a personal note, he had served on different boards discussing building regulations and standards for the past 24 years, and yet, “nothing was done,” highlighting the pertinent need to regulate the sector further. 

One key change that most were in agreement with was the licensing of the developer to have more regulation on who is carrying out professional work. 

“Unlike what is misunderstood out there, as developers, we are not against regulations. In fact, even in terms of the law amendments for contractors, we wanted the law to be more rigorous,” Mr Stivala said.

On the other hand the MDA CEO commented that lead contractors should be made more prominent, along with project management and architect, to make sure that the development is being carried out according to the set regulations. 

Making a passionate statement to close the panel directly addressing members of the audience and therefore the stakeholders of the industry: developers and real estate agents, Prof Gonzi Dalli shared that research, discussions and solutions are out there and that it is up to the people in the room to take charge and see that the change that is sought after is implemented. 

“Everyone in attendance came to the conference to take action and not take photographs. Don’t be afraid of enforcement and discipline and as you leave, ask yourself: How am I going to make a tangible change?” she concluded.