Hon. Chris Agius – Parliamentary Secretary for Construction
As 2021 has drawn to a close, it is a good time to take a look back, and in the meantime to look forward. The years 2020 and 2021 will be remembered of how Covid19 hit the world, from North to South, East to West. No country was spared from this pandemic. It’s effect was felt by everyone in different ways. We, as a country being part of the world, also experienced the effects of the pandemic. But, as a government we were always prepared so that we will be in the forefront in this fight against Covid.
As from day one, we prepared to have all medical supplies and equipement in place. Once a vaccine was launched, we secured enough doses so that our population will have the opportunity to get vaccinated by dose 1, dose 2 and also a booster jab.
Besides being well prepared for the health of our people, we also wanted to assist our business and our workers and other sectors of our population. We launched several schemes such as the wage supplements for full-time and part-time employment, deferral payment of taxes for our business, quarantine leave, assistance in rent and electricity for businesses, etc. We also provided two rounds of €100 Vouchers to all residents in Malta so as to encourage spending in the retail and hospitality sector and assist those business which were hit hardest by the pandemic. An investment of over €90 million.
These initiatives helped our families and businesses, and we experienced a strong economic recovery. Unemployment was controlled and according to NSO data the unemployment rate for October 2021 stood at 3.6 per cent.
As regards the property sector, Government introduced several schemes to assist so that more Maltese families become home owners. The most popular of schemes was the one reserved for first-time buyers, which allows for a duty exemption on the first €200,000 on first time purchase of residential property. Besides this scheme, there were others such as the second time buyer scheme, property Tax & Stamp Duty exemptions on purchase of property, Donations of Immovable Property exemptions, assignment of Rights on Promises of Sale (konvenji), assistance on the 10% up-front payment and others. Even on this front, the schemes were introduced by the Government helped to assist the sector even though through a pandemic, surpassed all expectations. During the twelve months of 2020, the local property market registered a sales turnover of more than €3 billion.
During 2020 there were 13,867 promises of sale, surpassing the amount registered pre-pandemic in 2019 which stood at 13,243 pos. Year 2021 continued on the good results we had during 2020. As data for the year is still being compiled, a look at one particular month confirms the continued growth. During May 2021 1,156 final deeds of sale of residential property were registered. This is an increase of 606 deeds compared to those registered a year earlier. The value of these sales amounts to €319.5 million which is more than three times higher than the value registered in May 2020. This augers well and we look forward that the sector continues growing during the months and years to come.
This article originally appeared in the Property Malta Supplement – Jan 2022
