The recession stifling the property industry is also affecting other areas and has to be managed with direct policies, according to Malta Developers Association chairman Michael Falzon.
We killed the goose that laid the golden egg a long time ago so we should look into restoring our vacant properties
He said the industry should be managed by the government in the same way it manages other important sectors for the economy, such as the tourism industry, with entities like the Malta Tourism Authority.
Addressing a national conference on development in Malta, Mr Falzon called for a professional, legal and economic study to determine the stock of vacant properties for sale or rent and, so that a clear picture of the situation would be established.
The authorities were looking at the property industry as a “milch cow” because of the revenue it generated but then had the wrong approach to solving the problems it was facing, he charged.
He noted that the share of the construction industry within GDP fell to 3.1 per cent last year from 3.4 per cent in 2007. Moreover, the number of permits issued for dwellings fell to 4,444 last year from 11,343 in 2007.
At the same time the exposure of banks to the construction industry had more than doubled since 2003, increasing to a staggering €1.5 billion last year.
He called for a national plan to attract foreign buyers to invest in property in Malta and stressed the need for a short-term plan to upgrade properties in a bad state.
NGO Flimkien Għal Ambjent Aħjar chairman Astid Vella said over-development was leading to an increase in traffic congestion and the increased pollution affected people’s health. Fgura, she said, had the “unflattering” record of having the highest rate of hospitalisation for lung problems in the world.
She said the way forward was to organise more courses on restoration so that the vacant properties could be upgraded and made more attractive to prospective buyers.
“We killed the goose that laid the golden egg a long time ago so we should look into restoring our vacant properties. There are 5,000 vacant flats in Sliema alone. We need a basket of incentives to restore and better protect our heritage,” she said.
Architect Vincent Buhagiar, who also addressed the event organised by the Church Environment Commission, said 25 per cent of Malta’s land area was built up and compared this figure to the 11.6 per cent in the UK and 13 per cent in Germany.