Developers, estate agents warn of slowdown, layoffs

Developers and estate agents warned today that further economic uncertainty  may result in substantial layoffs in the industry and a slowdown which will also impact the banks.  

In a joint statement, the Malta Developers Association (MDA), the Federation of Building and Civil Engineering Contractors (FOBC) and the Federation of Estate Agents (FEA) said the current situation of economic uncertainty was a source of concern and may cause the already 'precarious' situation of the property market to deteriorate further. 

"Although it has emerged that so far the employment figures are satisfactory, the three associations fear that if the economic uncertainty continues to persist, the situation in the construction sector will continue to deteriorate, resulting in a slowing of the rhythm of this major motor of the economy in our country and considerable job losses in the sector, to the extent that it will not be possible for the unemployed  to be absorbed in other sectors of the economy, as has happened so far," the associations said.

"Apart from that, the slowdown in the activity in the property market can have a negative impact on the financial institutions, to the extent that the banks have already complained that requests for house loans have reduced drastically."

They said that a lot of work could be done to modernise existing buildings, but people were not taking such decisions because of the current situation of uncertainty.

The three associations also insisted their their sector should be represented on the Malta Council for Economic and Social Development (MCESD) because of its importance for the economy.