Only 18 per cent of property is vacant, which means that Malta is definitely not experiencing a property bubble, economist Gordon Cordina said this morning.
“We do not have a property bubble, and if the figures that are frequently cited were true, Malta’s property industry would have collapsed ages ago,” he said during a one-day seminar organised by the Planning Authority.
The figure is just 1 per cent higher than the EU average.
Dr Cordina said that that all the fundamental features for a strong property industry were present, with steady growth in property prices and the property volume index.
“Considering that 6,000-plus of those unoccupied dwellings are in need of repair, there is considerable attractive room for growth,” he added.
Land demand could grow by 1.5 million sqm in the next 15 years especially if Malta maintained its current rate of growth, Dr Cordina said.
“The win-win solution for Malta is to create and nurture our advantages and turn Malta into the ideal place where to lead a coherent lifestyle, work, study, heal, learn, relax and develop,” he said. “Such an undertaking would require a minimum investment of €10 billion in these specific sectors in the next 10 years.”
“The current approach is more about restraining negative actions rather than empowering positive ones,” he said. “It is not preventing land resources from serving an unduly speculative rather than productive purpose.”