Applications for planning permits increased by 12% in 2024

Development applications increased by 1,115 last year when compared to 2023 figures, suggesting a resurgence of investment in the property sector after a two-year dip. 

The exercise conducted by MaltaToday using data that is publicly available on the Planning Authority website shows that there were 8,717 planning applications. 

Nonetheless, the number of development requests still remains considerably lower than the pre-pandemic peak in the three years between 2017 and 2019. During that period the number of applications presented each year surpassed the 10,000 mark. 

However, requests for new permits in 2024 was higher than in every year between 2012 and 2016. 

The number of planning applications had already dropped from a record 11,480 in 2018 to 8,981 in 2020 only to increase again to 9,049 in 2021. But subsequently the number of applications decreased again to 8,068 in 2022 and to 7,802 in 2023. Requests for planning permits in 2023 were the lowest since 2016. 

The number of planning and zoning applications only offers an indication of the state of the construction industry. This is because planning permits are submitted for a wide range of works, ranging from new residential blocks to agricultural stores and reservoirs. 

Moreover, not all permits are approved and works do not always commence immediately after approval. Permits remain valid for five years after being issued and owners may bide their time before commencing works. 

But the number of planning applications does offer an indication of confidence in the property market and willingness of owners and developers to take risks. 

Stakeholders confirmed that although the construction sector had remained resilient during the pandemic, it was passing through a ‘cooling-off’ period following a peak in 2018. 

Factors which contributed to the dip in permit requests were the general election, which dominated the first quarter of 2022 and inflationary pressures triggered by the war in Ukriane. The latest surge could reflect a more optimistic mood in the sector but could also raise sustainability issues due to increased pressure on neighbourhoods. 

The upsurge in applications between 2017 and 2019 reflected demographic changes and economic growth in that period but also more liberal planning policies since 2013, which allowed higher developments within development zones.