Maltese property prices and the Green Deal

There are two opposing tensions in Malta’s economy at the moment. Wages, which since 2016 have improved all over Europe except in Malta and property prices, that have soared by 62.6% over the last 15 years. These prices are expected to keep rising in view of new EU directives on energy efficiency that foresee mandating new buildings having zero emissions as from 2030.

The challenge we have to face – on both the Maltese and the European level – is how to keep housing affordable for young people who want to buy their first property, and for everyone else trying to climb up the property ladder.

I recently discussed housing affordability in Malta with Federico Nahuel Lazzari, Secretary-General of Build Europe, the umbrella organisation for national federations of developers and house builders. Why discuss housing with Build Europe? Several young people I meet share their concerns on how difficult it is for them to buy a first property in Malta. Many describe it as ‘mission impossible’. New Green Deal measures adopted in March will make it even harder for youths to buy property. These measures will require that new buildings be net zero emission as from 2030 – that’s just six years from now.

According to research that I commissioned with an international expert earlier last year, the expense involved in producing a zero emissions building in Malta may reach the €30,000 mark for a three-bedroom apartment. That’s an additional 30k on top of the already hard to reach property prices. Those €30,000 will cut off another chunk of buyers from accessing the property market.

I am truly worried about this, because I believe that everybody should have the opportunity to become a homeowner. I believe that the matter is not just economic but also psychological. A 2020 study carried out in England has found that home ownership is good for health, because of better labour market outcomes and healthier lifestyles.

As an MEP candidate I feel it is my duty to strive to ensure that new EU rules do not put the burden of the European Green Deal on property buyers. Housing affordability should be a topmost priority for European legislators mostly because of wage levels in Malta – according to Eurostat, Maltese wages are lower than those of most other EU countries.

We were bombarded with propaganda trying to convince us that Malta is the best in Europe. In reality, since 2016 Maltese wages have stagnated, whereas other European wages kept growing. Property prices rose, and now, with the rules that will come into effect in 2030 aiming at achieving the zero-emission objective, the market will go through further distortion pushing prices further up. I wonder what the Maltese government is waiting for to launch a national consultation process on the implementation of these new rules. Why does it seem that, once again, Malta will wait until the eleventh hour to start the change needed, this time in the property market?

We should strive to make the most out of EU membership by securing funding for property convertors, renovators and builders to offer clean energy properties at affordable prices. The emphasis should be on clean and affordable, the two key-words. The burden of the Green Deal cannot be carried by the property buyers, especially not first-time buyers. We Maltese need EU laws that cater to our needs.

Following a proposal I put forward in the Conference on the Future of Europe and as the PN representative on the EPP's working group on EU policies, there are now provisions in the European People’s Party electoral manifesto that propose to assess the territorial impact of European measures and laws before implementation. In other words, an antidote to the pernicious one-size-fits-all approach. This needs to serve as our compass in Europe.

I want to adapt the Green deal to Malta, particularly when its impacts involve a disproportionately larger burden due to us being an island. Moreover, if we are to take up Green Deal provisions we must be ready to sustain society to take them over efficiently. While France and Italy and other member states have already launched public funding assistance for property owners to adapt to a better energy efficiency in buildings we have not seen any move to that effect in Malta as yet.

While Belgian and French regions already subsidise insulation and double glazing through EU funds, Labour’s creativity only extended to the use of the Recovery and Resilience EU funds for buying electric cars for ministers and private users. Nothing bad with that first step, but we must do much more. We can do much more.

I believe that EU laws should be sensitive to the different situations and needs of the different Member States. Other EU member states have followed this path when the European Green Deal was leading to a disastrous impact on their economies.

Take for instance Germany and its moves In Brussels to protect the automotive industry. On the contrary, over the last five years, Labour MEPs have been mostly sitting idle covering up for their government and its actions in Malta and Brussels.

The European Green Deal will most likely remain on top of the EU's agenda. While sustainability remains of vital importance, the green deal must also be a deal for Malta and not put a disproportionate burden on first time buyers. Hence why, if elected as MEP, one of my priorities will be to ensure that EU legislation is adapted to our needs and that measures adopted respond to realities on the ground.

On 8 June, you can use your vote to help me on this mission.