In a meeting in Qrendi, Dr Gonzi had stated that there is no better economic barometer than the construction industry and property market. Moreover, he used data that showed that property prices had spiralled by 30 per cent from last year in order to give the impression that the economy was improving.

Edward Fenech, Alternattiva Demokratika’s spokesperson for the Economy, stated that it is disappointing that the Prime Minister resorts to using data on the huge rise in cost of property sales contracts to give the impression that the economy is improving when most of this increase is due to last year's budget’s registration of promise of sale agreements rather than to a real economic recovery.

Mr Fenech also criticised the validity of using property prices as a measure of the economy.

“The increase in property prices is by no means a reliable indicator of the well-being of the economy since people may be diverting their investments into the property sector because they have no confidence in investing in other entrepreneurial activities. This may be very bad news for the country because money channelled into the construction industry is effectively denying resources to other businesses that create more jobs and generate more economic activity. Moreover an artificially fuelled property market can ultimately lead to an economic bubble which once burst can cause serious harm to Maltese families,” concluded Mr Fenech

Alternattiva's chairperson Dr Harry Vassallo also expressed his concern regarding the property sector.

“Even though the actual prices of property did not increase by 30 per cent this year as the Prime Minister wants us to believe, nevertheless the price of property has indeed risen significantly. The Prime Minister’s statement is yet another confirmation of the urgent need to reform the property market and eliminate the artificial pressure that our outdated rent laws are exerting on the price people have to pay for their home.

“AD has consistently called for rent law reform but the only response was endless procrastination and reluctance. Since it seems that the government does not want to remedy a blatantly unjust and economically harmful status quo, we have no choice but to launch a referendum campaign to remedy the injustices and harmful pressures the rent laws are creating,” concluded Dr Vassallo.