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The value of properties under promise of sale agreements increased to €415.3 million in April 2024, 14.4 per cent higher than it was in the same month last year (April 2023: €363.2 million), a report from the Malta Development Association (MDA) stated.

The report, released by the developers’ lobby group on Friday (today), is based on data collected by the MDA from a number of sources, and includes both residential and commercial property.

The MDA noted that April was a “record-breaking” month for Malta’s property market, with this year’s figure representing an all-time high for April. Prior to last month, the previous highest value recorded in April was €399.8 million back in 2021, a period that was heavily incentivised due to the COVID-19 pandemic.

Additionally, the MDA stated that the number of promise of sale agreements increased by six per cent from the previous year, going up from 1,302 in April 2023 to 1,385 in April 2024.

In his reaction to the figures, MDA CEO Leon Chetcuti remarked that 2024 is “very evidently setting new benchmarks” in terms of property sales, noting that this reflects the industry’s “health, resilience, and investor confidence.” He added that the property development industry plays a “pivotal role” in Malta, with one of the highest multiplier effects in the economy.

However, while the MDA highlighted the positive date that emerged from the report, it also reaffirmed the need to do more in terms of efficient governance.

For a number of years, promise of sale agreements have far outweighed the number of final deeds of sale, with many in the industry pointing towards bottlenecks in setting bank appointments and processing loans. While the latest MDA report provides data on promise of sale agreements, no figures for final deeds of sale were published.

Dr Chetcuti remarked that the MDA is “not satisfied” with the lack of reforms aimed at addressing this bureaucracy and measures that seek to address various aspects of the industry including amongst others, aspects of health and safety and quality standards.

“The MDA is actively engaging with the concerned authorities to discuss these improvements,” he affirmed.

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