A word we might not have often heard or read in our country. It is the process whereby the character of a poor urban area is changed by wealthier people moving in, improving housing, and attracting new businesses, often displacing current inhabitants in the process. Over the last few years, in Malta and Gozo, we have seen several areas undergo rapid gentrification.
Gentrification often increases the economic value of a neighbourhood, but the resulting demographic displacement may itself become a major social issue. In addition to these potential benefits, gentrification can lead to population migration and displacement. On the positive side, gentrification often leads to commercial development, improved economic opportunity, lower crime rates, and an increase in property values, which benefits existing homeowners. This phenomenon in our country evolved with time when gentrification started taking the place of the suburbanisation of areas scattered over the islands.
The gentrification problem was so felt over time in Berlin that, in September 2021, a referendum was held that reflected the growing frustration and helplessness among renters in the city. Residents in the capital had to decide if Berlin should expropriate so-called "mega-landlords", the consequence of which would be having a law as one of Europe's most radical responses to gentrification and the rising cost of housing, socialising roughly 240,000 apartments. Once known as one of the most affordable capitals on the continent, exploding rents had rendered Berlin a symbol of increasingly common urban struggles with housing costs. Berlin has consistently registered some of the fastest-rising housing prices in the world in recent years. Though still relatively low compared to Europe's other global cities like London or Paris, rents in Berlin doubled in the decade between 2009 and 2019.
Housing costs do not just pressure low-wage earners; they threaten to unweave the fabric of any country's area. Until a few years ago, in our country, we did not have any areas that were particularly economically segregated. But today, the country has grown significantly in the last decade, putting further pressure on the housing market. The country's growth has outstripped the building of new apartments. There has always been a real housing scarcity, and it is bound to get bigger, and this is what is helping make landlords incredibly powerful. Finding a new apartment, regardless of the price range, is often a demoralising and gladiatorial experience. Renters frequently take whatever they can get, knowing they cannot afford to be picky.
We have had periods in Malta demonstrative of runaway housing costs that forced more than one administration to take a leading role in experimenting with far-reaching housing regulations. We have had various legislative rent caps introduced while providing rent reductions for many residents in feeble attempts to rein in the runaway housing market. The problem persists, and we are experiencing the effects of gentrification, one of the processes by which our towns and villages are changing, more than ever.
During the last 30 years, Sliema has become fashionable again. Many foreign residents have chosen to live there, as have young Europeans who are studying English. Malta has become a popular place for British people to retire to or to own holiday accommodation. Wealthy Maltese, especially those who work in Valetta, have increasingly chosen to live in Sliema. They can quickly and easily commute to the city by road, and there is also a ferry across the harbour to Valetta. To cater for all its wealthy residents, Sliema has seen the growth of specialist shops selling expensive clothes and household goods. The main area of new housing development has been Tower Road, which runs along the seafront. Blocks of expensive apartments have been built there and are popular because of the impressive sea views.
A growing number of foreigners taking up residence in towns and villages across Malta is contributing to a more diverse country but also creating new challenges for community leaders. We all know how Saint Paul's Bay has long been the subject of a changing social fabric. But the seaside locality is not alone in experiencing an influx of foreign residents and other wealthy local citizens. All seven localities along the northern harbour coastline, starting from Pieta all the way to Swieqi, have seen and continue to see the effects of gentrification.
Gzira is home to a lot of foreigners working for gaming companies, most of which operate in neighbouring Sliema and St Julian's. But it is also home to others who work in the construction sector. Little by little, the original Gzira residents, coming down from several generations in the past, are being forced out of their home town due to this phenomenon. We have even less space and time. The love we had for our whole neighbourhood faded away. We do not know the people who live across the street or on either side of us.
Unsurprisingly, the bulk of the localities in the southern harbour region, consisting of localities around Valletta and the Cottonera, experienced an exodus of residents, with their overall population dropping by a large percentage. Percentage-wise, the biggest losers were Floriana, Senglea, Cospicua, and Marsa. However, the biggest drop in terms of residents was registered in another inner harbour region town, Ħamrun, whose population fell dramatically. The demographic change has resulted in many vacant properties, especially in the lower part of St Joseph High Road in Blata l-Bajda.
Conservation, both architectural and demographic, is a relatively new concept in Malta. Over the years, Malta's cities' skylines and the composition of the people living in towns and villages have changed dramatically, enhancing Malta's image in some cases but creating close to an environmental disaster by introducing drastic interventions in others.
The change gentrification brings in class distinction has also been shown to contribute to residential polarisation by income, education, household composition, and race. Government, beware!