The 5.2% increase in property prices in Malta by the end of 2024 is worrying and is impacting everyone - particularly those trying to purchase their first home, but not only them, the Nationalist Party said Friday

This increase, reported in figures published this week by the National Statistics Office, is higher than the European Union average (4.9%) and the Eurozone average (4.2%). The statistics also reveal that over the past nine years, property prices in Malta have risen by 65%. These increases must also be considered within the wider context of the ever-rising cost of living, and the fact that wages in Malta remain low while the prices of essential goods, such as rent, continue to climb.

This was the message delivered during a press conference addressed by Shadow Minister for Social and Affordable Housing Ivan Bartolo, Shadow Minister for the Family Albert Buttigieg, and Shadow Minister for Youth Bernice Bonello, in light of the increasing number of people who are unable to afford to purchase their own property and are therefore forced to rent.

At the same time, we are witnessing exorbitant increases in rental prices, with the cost of renting an apartment today even exceeding the average full monthly wage - a situation brought about by the Labour Government's unplanned economic model of unchecked population growth, which is having a negative effect on the property market and on wages.

The Shadow Ministers emphasised that many, particularly young people, are seeing the dream of owning their own property become increasingly unattainable. Despite the Government's repeated boasts of a strong economy, the reality is that this wealth is not reaching everyone.

The PN spokespersons explained, for example, that a single person in Malta today earns an average salary of €21,000 per year, which is not nearly enough to purchase a property costing at least €171,000 - given that 95% of properties currently on the market are priced above this threshold. Similarly, a couple with an average combined income would still struggle to afford around 60% of properties on the market, even with bank loans.

This has led to certain areas in Malta becoming completely unaffordable to people trying to buy their first home. Furthermore, these same localities are losing their unique character and historical heritage, as terraced houses, townhouses, and semi-detached villas are being demolished and replaced by apartment blocks - properties that remain unaffordable for many Maltese and are instead being built with the intention of renting them out to foreign workers or tourists. This is contributing to the erosion of community spirit and sense of belonging.

Maltese and Gozitans are facing significant difficulty in saving enough for even a first deposit on a property. Increasingly, we are seeing young people choosing to remain living with their parents for longer, or taking out large loans that place them under considerable financial stress. Others are becoming reliant on financial help from their parents. It is also becoming common for young people to delay marriage until after the age of 30, or to have children between the ages of 30 and 35, or even at 40. Some couples are choosing not to have children at all due to financial pressures and the burden of mortgage repayments, despite wishing to start a family.

The Labour Government has attempted to address this problem by injecting funds into the system, a move which has led many property owners to raise their prices in the knowledge that direct government assistance is available. So much so that even Prime Minister Robert Abela has publicly appealed to property owners not to increase their prices.

The PN spokespersons reiterated that the issue of property prices is a serious one and requires concrete solutions. That is why the Partit Nazzjonalista has already proposed a number of measures to support people in becoming homeowners. These include

Grants and assistance schemes for those purchasing their first home;

Tax reductions on property purchases for individuals under a certain age;

Loan schemes with more favourable rates for first-time buyers;

Plans to develop more affordable housing in designated areas for first-time buyers;

A €25,000 grant for young people purchasing their first home;

Collaboration with banks to provide loans with better rates and more flexible terms for first-time buyers;

The removal or substantial reduction of tax on the first €200,000 of a property's value for first-time homebuyers;

Identification of public land to be developed into affordable housing zones targeted at first-time buyers;

Greater regulation and oversight of the rental market to ensure prices are fair and sustainable;

Stricter controls on the rental market to prevent abuse and inflated prices.