Developers warn changes to SmartCity master plan may have adverse effects on property market

The Malta Developers Association has the parliament to only approve proposed changes to SmartCity’s master plan if the cost of land to developers is increased substantially and equitably to match current market prices.

It was referring to reports by The Times of Malta that the SmartCity developers – which include the government – have formally asked the Planning Authority for “radical” changes to the master place regulating the area. According to the plans seen by the newspaper, SmartCity Malta Ltd wants to “almost double the height limitation at various points, going as high as 68 metres”.

Developers behind Ricasoli Properties Ltd are already marketing a new 11-storey development at SmartCity, named ‘The Shoreline’ which is set to include over 400 luxurious apartments and a huge commercial mall.

Under the original plan, foreign investors were told they could not build above seven storeys.

The MDA argued that the requested changes are a radical departure from the original purpose of the project that was meant to be an IT hub employing over 5,000 persons.

“While that vision could have justified the very low price with which public land was transferred to the developers of SmartCity, the proposed changes in the Master Plan render the project another real estate development in competition with private developers who pay very high prices to purchase developable sites,” the MDA said.

“In the circumstances, the MDA strongly insists that the requested changes in the SmartCity Master Plan should only be approved by Parliament if the cost of the land to the developers is increased substantially and equitably to match current market prices.”

The MDA said it had professional advice that the current state of the property market was a very healthy one and that the possibility of a property bubble is very remote. “However, the sudden addition of a large number of residential units built on land acquired at an unreasonably low cost could negatively affect the current positive outlook of the property market,” the developers’ association said.