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National Conference : Analysis of the Property & Construction Industry

Tuesday, November 14th, 2017

National Conference : Analysis of the Property & Construction Industry

Thursday 30th November 2017
Grand Hotel Excelsior, Valletta
Registration at 8.15am.
Lunch will be served at the end of the conference at 12.30pm.

The recent KPMG Property & Construction Industry Study commissioned by the Malta Developers Association will be published and discussed during the conference. A copy of the document will be given to all participants.

Hon. Ian Borg, Hon. Chris Agius and Hon. Edward Scicluna will also be addressing the conference.

Conference fee : Eur70
(includes coffee breaks & lunch)
FREE OF CHARGE FOR MDA MEMBERS

The conference will be addressed in Maltese.

 

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MDA condemns brutal murder of Daphne Caruana Galizia

Monday, October 16th, 2017

The Malta Developers Association condemns without any reservations the hideous murder of blogger Daphne Caruana Galizia.

MDA steadfastly believes that Malta is a democratic and civil country where freedom of expression is paramount and disagreements are part of normal life.

Read more »

older news

Utility bills and evictions

MDA’s suggestions

The Federation of Real Estate Agents has come up with a number of ways to stimulate the rental market, but the Malta Developers’ Association has its own.
It identified two other factors which deter landlords from renting out their properties, hoping to get more on the market which has “exploded” in the past few years.
MDA president Sandro Chetcuti said that landlords were still waiting for the legal notice which would explain how the 15 per cent flat tax rate would work in practice, as they will need to declare their 2014 earnings in next years declaration. At the moment, the indication is that the tax rate will apply to the gross rental income – to prevent the temptation to abuse when it comes to deductible expenses.
But in the meantime, he said there were two deterrents: utility bills and evictions.
“It is simply too bureaucratic when it comes to changing water and electricity bills from the name of the landlord to that of the tenant.
So they are often left in the name of the landlord. This means that if the bills are not paid, the landlord ends up in trouble,” Mr Chetcuti said.
“The other deterrent is that the only way to evict a tenant who defaults on his rent is to go to court.
The system should protect the landlord and put the onus on the tenant to challenge the eviction:’Mr Chetcuti believes that the rental market could soon become more important than that for sales.
“The demand from foreigners for properties in central Malta and in the north is phenomenal. We are seeing contracts of one to three years, mostly for upmarket properties like villas or large flats with seaviews or panoramic views.
“There are other places like Vittoriosa and village cores like Balzan and Lija which could also attract foreigners as they are being turned into much more upmarket locations. The problem is that the properties themselves are not enough; we need to upgrade the environment, landscape it intelligently, and safeguard the character,” he said.
“You can’t expect a multimillionaire to buy a luxurious property and then find a broken pavement outside his door, or an electricity pole with old wires!”
The rental market is tapping into existing vacant properties, but will the demand eventually result in more properties being built? Applications to Mepa have dropped to nearly one fourth of previous levels, but Mr Chetcuti thinks this reflects a shift from the oversupply of units aimed at first-time buyers.
“This is not the end of the construction sector. Developers are now looking at large projects, particularly infrastructural ones like petrol stations, homes for the elderly and boutique hotels – and they are actually getting together to tackle them as joint ventures:’
“And the banks, which were reluctant to lend for construction of housing units, are much more open to the idea oflending for these sorts of projects:”

(Article published in The Business Observer, a supplement in the Times of Malta, on Thursday, 19 June, 2014)

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