Saturday 22 September 2018

MDA-commissioned study by KPMG shows construction is 15% of economy

The KPMG study on the construction industry and the property market in Malta, commissioned by the Malta Developers Association, issued today, shows that this sector represents 15% of the nation’s gross valued added, accounting for a total output of €2.55 billion.
In terms of employment, the sector contributes to the creation of 37,275 jobs or over 21% of the total gainfully occupied in Malta and Gozo (all figures related to 2015).
Speaking at a press conference held at the Auberge de Castille, MDA President Sandro Chetcuti said that there were two principal reasons why the MDA has for years been wanting to conduct such a study:
“While as entrepreneurs we have foresight and go by our gut feeling, which is an innate gift, an art, we wanted this scientific study to back up our arguments in order to collaborate with those who are not similarly endowed.
“Secondly, we cannot afford to get carried away by our enthusiasm and we want to foster a climate where the property industry continues to flourish.”
The KPMG study also shows that vacant properties should not be considered as part of the supply of housing stock. While 42% are classified as ‘seasonal or secondary use’, the remaining 58% are ‘completely vacant’. Most properties in the first category are in a good state of repair, while 31% of ‘completely vacant’ properties are also in a good state of repair (data from 2011 Census).
The study found no econometric indicators of an existing property bubble, looks into housing affordability and gives an insight into the economic and social dimensions of the property market. It also considers some new emerging challenges and proposes that MDA should engage with Government and other stakeholders to address these challenges proactively

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