The transfer of public land for private commercial development should be at the commercial going rate and not a lower one, the Malta Developers Association said.

In a statement referring to negotiations the government is conducting on the transfer of public land to the private sector, including the former White Rocks Holiday Complex site and other prime sites, the association said the price should take into consideration the building volume (density) that was to be allowed on particular sites to be transferred, as well as the nature of the development.

In this way, the State would safeguard the common good and avoid unjust competition and speculation between developers while also ensuring a level playing field.

“The government should also seek to avoid selling several sites to be developed for real estate purposes at the same time. This could have a negative effect on the property market to the detriment of all those who own private property and prospective buyers. In such a situation, it will be the government that is creating an artificial bubble in the property market, which should be avoided at all costs.”

The MDA said it agreed with the Finance Minister who recently emphasised that no economic sector should be allowed to overheat and reach overcapacity.