Malta's property market is spiralling out of control, and it is our young people who are paying the highest price, ADPD-The Green Party said Friday. Rising house prices, rampant land speculation, and an investment-driven property sector are pushing the necessity of home ownership or even long-term affordable rent further out of reach for generations trying to build their lives here.
Information published by the Central Bank of Malta clearly shows that the median amount of debt young people aged 18-25 are taking on to purchase a home has risen by more than €53,000 in just three years. Between 2021 and 2024, the median loan value climbed from around €163,000 to over €216,000.
By 2024, the median debt taken on for a home purchase by 25 to 35-year-olds rose by just under €36,000 to €220,400. This is clear and irrefutable evidence that owning a basic flat in Malta is becoming an ever-greater financial burden on the young and median earners. Salaries and wages in the meantime languish.
Meanwhile, unbridled land speculation, fuelled by weak planning oversight and a system that favours profit over people, is turning our towns and countryside into concrete jungles. Our agricultural land and open spaces are being bulldozed while developers and speculators reap huge profits, with little regard for community interests. Sustainable development on these islands is a sick joke, ADPD said. All this while the quality of the property developed and the surrounding urban areas continue to decline.
The rise of buy-to-let investments and flats marketed at "golden passport" holders has further distorted the market, converting homes into commodities and sidelining the needs of Maltese families. Properties are increasingly seen as financial assets first, homes second, making affordability a privilege only for those already wealthy or supported by family wealth.
ADPD-The Green Party Chairperson Sandra Gauci concluded that the party insists that decent, affordable housing is a basic necessity and right not a speculation vehicle. We call on the government to implement strong rent regulation framework which curbs speculative buying, halts policies that encourage absentee ownership for investment, golden passports or similar schemes, and prioritise real, affordable homes for Maltese residents. The time for token measures is over. Only then can we ensure that young people can look forward to a future where owning a decent home does not literally suck them dry.