The number of dwelling units approved for construction by the Planning Authority each year has increased more than threefold over the last 20 years, figures published by the authority show.
Data on dwellings in Malta made available by the Planning Authority highlight how Malta has gone through two construction booms since 2000.
That year, the authority approved the construction of 3,970 units with the number increasing in each subsequent year, peaking at 11,343 in 2007 – the year before the 2008 global financial crisis.
Construction grinds to a halt in 2008
The number of approved dwellings fells by almost 50% – from 11,343 to 6,836 – between 2007 and 2008. Approved dwellings continued to decrease every year after that reaching the lowest point in point in 2013, with just 2,707 units approved.
For the purpose of the statistics, the term dwelling includes apartments, maisonettes, terraced houses, bungalows, farmhouses of villas.
While a lack of investment brought about by the financial crisis contributed significantly to the slowdown construction of new dwellings, the government’s policy at the time of restricting permits for new construction projects also left its impact and was ultimately a contributor to the Nationalist Party’s defeat in the 2013 general election.
Approved permits have steadily picked up since 2013, reaching the highest level in 2018, with 12,885 approved units. A slight reduction was registered in 2019, with 12,485 approved units.
There were a comparatively low 7,831 units approved last year, reflecting uncertainty brought about by the COVID-19 pandemic and its resulting effect on the number of foreign workers plying their trade in Malta.
Shift away from houses and maisonettes
In addition to offering a glimpse into Malta’s economic development over the years, the statistics also reveal changes in the way people live.
In 2000, 64% of all dwellings approved were apartments, maisonettes made up 22%, terraced houses 9.6%, with other dwellings, including villas, bungalows and farmhouses, collectively representing 2.14%.
By 2007, the proportion of apartments among newly approved dwellings had increased by some 30%, with nine in ten of all units approved that year being apartments.
This is likely a result of Malta entry into the European Union and the resulting increase in foreign workers, especially in the gaming and financial services sectors.
Apartments have made up over 85% of all new approved dwellings every year since 2017, after reaching a post-financial crisis low of 75.62% in 2014.
40% of villas approved in just two years
Since 2000, the Planning Authority has approved 3,566 units described as villas, bungalows or farmhouses, but while the number approved hovers around the 100-mark each year, two years – 2001 and 2002 – stand out for the number of ‘other’ developments.
There were 546 approved units in 2001, up from 85 the year before. 2002 saw the number increase further, reaching 1,106 approved units. The number hasn’t increased beyond 150 every year since.
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