Developers: public land should be transferred ‘at commercial rate’

Public land transferred to the private for commercial development should be at the commercial going rate on the day and not at a lower rate, the Malta Developers Association said.

According to the developers, the price should take into consideration the building volume (density) that is to be allowed on particular sites to be transferred, as well as the nature of the development.

“This is very important both so that the State will safeguard the common good, as well as to avoid unjust competition and speculation between developers who buy private land at commercial rates and others who buy public land at preferential rates,” the MDA said.

“In this way, there will be a level playing field that is desirable because unjust discrimination will be avoided.”

The government is currently in talks with a consortium to develop the land at White Rocks. The Ministry for the Economy has denied media reports that 135,600 square metres of land would go for €22 million, arguing that it was much higher.

The MDA noted that real estate development will be allowed at White Rocks, and will be placed on the market in competition with other developments built on private land.

“The MDA insists with the Government that the transfer of public land for private commercial development should be at the commercial going rate on the day and not at a lower rate,” the government said.

The MDA also insisted that the government should not sell several sites to be developed for real estate purposes, all at once.

“This could have a negative effect on the property market to the detriment of all those who own private property and prospective buyers. In such a situation, it will be the government that is creating an artificial bubble in the property market, which should be avoided at all costs,” the MDA said.

It went on to add that it agreed with Finance Minister Edward Scicluna, who recently emphasised that no economic sector should be allowed to overheat and reach overcapacity.