The lack of a holistic government plan for major development projects involving sale of public land risked creating instability in the sector, Malta Developers Association president Sandro Chetcuti warned.

He said the government should avoid selling several sites to be developed for real estate purposes at the same time because it could have a negative effect on the property market to the detriment of private property owners and prospective buyers. In such a situation, it would be the government that would be creating an artificial bubble in the property market, which should be avoided at all costs.

This is very important so the State will safeguard the common good

Mr Chetcuti stressed the need for a holistic plan when selling public land for real estate planning. “If there are too many of these projects going on at the same time the market will be flooded. This will affect our competitiveness and instability will be created again. There is a limit to the demand this country can take,” he told the Times of Malta.

In a statement, the MDA referred to negotiations the government was having on the transfer of public land to the private sector with regard to real estate development, among them the former White Rocks Holiday Complex site and other prime areas.

As part of the projects, real estate on what was public land would be permitted and placed on the market in competition with other developments built on private land, which usually involved more investment and risk, it said.

“This is very important so the State will safeguard the common good and also avoid unjust competition and speculation between developers who buy private land at commercial rates and others who purchase public land at preferential rates,” the association said.

The government, it continued, should ensure a level playing field and avoid unjust discrimination: “Once again, the MDA insists with the government that the transfer of public land for private commercial development should be at the commercial going rate on the day and not at a lower rate. This price should take into consideration the building volume [density] that is to be allowed on particular sites to be transferred as well as the nature of the development.”

Controversy erupted recently over the value of public land to be transferred to private investors with regard to projects involving the development of residential units on the sites of the White Rocks complex in Baħar iċ-Ċagħaq and the Institute of Tourism Studies in St Julian’s.