Developers and estate agents yesterday warned that further economic uncertainty might result in substantial layoffs in the industry and a slowdown that would also impact the banks.

In a joint statement, the Malta Developers Association, the Federation of Building and Civil Engineering Contractors and the Federation of Estate Agents expressed concern that the already “precarious” property market may deteriorate further as a result of the present situation.

While employment figures are satisfactory, the three associations fear that if the economic uncertainty persists, the situation in the construction sector will continue to deteriorate, resulting in a slowing of the rhythm of “this major motor of the economy”

This would result, they warned, in considerable job losses in the sector, “to the extent that it would not be possible for the unemployed to be absorbed in other sectors of the economy, as has happened so far”.

“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.”