Malta’s Housing Boom: 40% Spike in New Dwellings Approved in Q1

Imagine walking down Triq San Gwann, the bustling street in Birkirkara that’s seen it all. Today, it’s a hive of activity, with construction sites dotting the scene. Why? Because Malta just approved a whopping 40% more new dwellings in the first quarter of 2023 compared to the same period last year. But what does this mean for our tiny island nation?

Malta’s housing market has been grappling with a supply-demand mismatch for years. According to the Planning Authority, the first quarter of 2023 saw 1,184 new dwelling units approved, a significant jump from the 846 approved in the same period last year. This surge is a direct response to the chronic housing shortage, with demand outstripping supply for decades.

But it’s not just about numbers. These new dwellings are spread across the island, from the urban hubs of Birkirkara and Msida to the coastal towns of Sliema and St. Julian’s. For instance, in Birkirkara alone, 154 new dwelling units were approved, a testament to the town’s popularity as a residential hub.

While the increase in new dwellings is a step in the right direction, affordability remains a pressing concern. The average price of a dwelling in Malta has increased by 11.5% over the past year, according to the National Statistics Office. This leaves many Maltese struggling to get onto the property ladder.

the type of dwellings being approved is also a contentious issue. Critics argue that the focus on high-end apartments is not addressing the need for affordable family homes. The Planning Authority data shows that 63% of the approved dwellings are apartments, with only 37% being houses or maisonettes.

As we look to the future, it’s clear that Malta needs a balanced approach to housing. We need to continue increasing the supply of new dwellings, but we also need to ensure that these are affordable and cater to a variety of needs. This means encouraging the construction of family homes, not just apartments, and implementing policies that make homeownership more accessible.

As Planning Minister Ian Borg recently stated, “We are working tirelessly to ensure that we have a balanced approach to planning, one that caters for the needs of our people while also ensuring that our environment and heritage are protected.” Let’s hope that this commitment translates into meaningful action.

So, as you walk down Triq San Gwann, look around. The construction sites you see aren’t just signs of progress; they’re symbols of Malta’s ongoing struggle to provide adequate, affordable housing for its people.