Real estate agents to be regularised within weeks of re-election, Muscat tells developers

Real estate agents will be regularised within a few weeks of the Labour Party being re-elected into government on the 3 June election, Prime Minister Joseph Muscat said today.

Speaking at a meeting where the Malta Developers Association presented the PL its proposals, Muscat said that competitiveness minister Emanuel Mallia has worked “very hard” on this legislation.

Muscat also promised to look into boosting the budget of the Property Malta Foundation and pointed out that the entire electoral manifesto of the Labour Party had been costed.

“We know where the money is coming from and we know how and when we are going to be implementing the measures over a span of five years,” he said.

Admitting that none of the government’s measures introduced in the current legislature were aimed specifically at the construction industry, Muscat said they were aimed at boosting disposable income. He added, however, that a new Labour government would invest heavily in infrastructure.

“We understand that we have to help our contractors to invest in equipment in such a way that they can compete so that this work will be kept in Malta,” he said.

MDA president Sandro Chetcuti outlined the Association’s proposals, quoting a pending KPMG report which states that the construction industry represents 17% of the gainfully employed population.

Chetcuti said that the construction industry growth of 40% between 2011 and 2015 meant its contribution to the national economy went up from €830 million in 2011, to €1.2 billion in 2015.

The MDA’s proposals involved the removal of stamp duty for first time buyers while considering those who separate or divorce from their spouse, as well as the establishment of a construction industry minister.

Other proposals include:

• Lowering capital gains tax from 8% to 5% so that the development will reach the near to zero renewable energy targets set for 2020
• Exemption from stamp duty on property acquired in Urban Conservation Areas and Gozo
• Reform of the Land Registry Department
• Registration and licensing of developers who are members of the MDA
• Further representation of MDA nominees on government boards and authorities related to the construction industry
• The payment of succession duty once the property is sold not within six months of the passing away of the deceased
• Fair compensation or aggressive incentives on scheduled properties and those of historical importance

Muscat also reiterated that the PL in government would extend the Individual Investor Programme at the end of the current cycle and be improved with the Association’s support.