Forum to discuss real estate sector

Economic and Management Consultancy Services (EMCS) Ltd are organising what they are billing as "the first national real estate forum" on Thursday, March 28, which will discuss, in a wide-ranging manner, the sector's opportunities and challenges for the future.

The forum - being held at the Hilton Malta Conference Centre, the Grand Masters' Suite - should interest estate agents, property developers, architects, legal professionals, bankers, investors, and those involved in the construction sector.

"This has become a very important sector of the Maltese economy, attracting much investment and changing the country's profile," EMCS chairman and managing director John C. Grech explained to The Sunday Times. "It is not only for first-time buyers - property has become a segmented, more sophisticated sector. One speaks today of apartment blocks, location, size and cost of land, landscaping, upgrading, conversions, development..."

Other aspects to consider are zoning of areas, green and urban areas, and old property in village cores, a considerable amount of which is unoccupied.

"Then there are the rent laws, the distinction between local and foreign tenants, and the fact that EU citizens can buy property in Malta," Dr Grech added. "Indeed, many foreigners are investing in property here, one example being the former Mistra Village, which has attracted - considerable investment by Kuwaiti investors, who are planning to build hundreds of apartments with a lot of international features."

The forum will be dealing with such questions as who are Malta's competitors in the property market, whether the service being provided to foreign buyers is up to scratch, and the country's image as a property destination.

"All these factors are creating a new reality," Dr Grech said, "but the reality is being approached in a piecemeal fashion. This is why the forum is being held - to encourage debate to include those involved in the process, to propose initiatives and reflect on the issues at stake."

Another aspect of the property sector is the fact that many Maltese are now investing in property abroad. Traditionally it used to be flats in London or properties in Italy, but Maltese are now investing in emerging markets like Bulgaria, Cyprus and Libya. Those who do not wish to commit large funds in actual property ownership, now have the option of investing in property funds.

There is also the apparent anomaly that while more and more property, old and new, is coming on the market, prices are still going up. "The forum wants to discuss the issues intelligently. We want to make a property 'valuation'," Dr Grech said, adding that EMCS planned to make the property forum an annual event.

The forum is being sponsored by Bank of Valletta, HSBC Bank Malta, BAWAG Malta Bank Ltd, and the Tumas Group and is being held in association with The Times, the Federation of Estate Agents and Competitive Malta, supported by the Malta Stock Exchange, Middlesea Insurance, Dhala Real Estate Services and AX Holdings.

There will be four panels throughout the forum. The first panel will discuss whether there is an over-supply of property for sale, and the commercial property market. The panellists are Professor Joseph Falzon, head of the Department of Banking and Finance at the University of Malta, Douglas Salt, president of the Federation of Estate Agents, Tumas Group chairman George Fenech, Adrian Said, chief co-ordinator of Competitive Malta and director of EMCS, and Karl Montfort, an economist from European Research and Consultancy Services Ltd.

The second panel - "Financing the development of Malta's real estate market" - will discuss the banks' exposure to the real estate market, the development of new financing instruments, house and property insurance coverage and the development of the mortgage market. The panellists here include John Soler, chief officer, credit, Bank of Valletta, Godfrey Swain, head, personal financial services, HSBC Bank Malta, Simon Anastasi, assistant general manager, Middlesea Insurance, Joseph Zammit Tabone, chairman of the Malta Stock Exchange, and Francis J. Vassallo, chairman of BAWAG Malta.

"Urban planning in Malta and the development of high-rise and developing for the future" will be discussed by the third panel, which will look at MEPA's role in development, the scope for high-rise buildings in Malta, and the designing and constructing of efficient buildings for living and working. The panellists here are MEPA chairman Andrew Calleja, architect Ray Demicoli, Angelo Xuereb, chairman of AX Holdings, Chris Grech, director of Dhalia Group of Companies, and Laurence Grech, editor of The Sunday Times, which recently published a survey on property.

The fourth panel will look at investment opportunities in the international property market, and discuss property funds, the opportunities offered by EU membership, and investment in emerging markets. The panellists here are Peter Perotti, general manager of Valletta Fund Management, and Julius Nehorai, an international property expert, who is a British national with a Gozitan wife.

At around 4.30 p.m. Dr Grech will summarise the seminar's conclusions. A CD containing information about what is happening in the international property market will be distributed to participants.

To register for the seminar, contact EMCS Ltd at Level 3, Regional Business Centre, University Heights, Msida MSD 04, tel. 2134-1848/9; fax: 2131-8677; e-mail: christina.zahra@ emcs.com.mt. Website: www.emcs.com.mt