Portelli shrugs off over-development: ‘More public spaces needed, not stop to construction’

Developer Joseph Portelli argues that Malta doesn’t have an over-development problem but an issue with property prices and a lack of public spaces.

The Gozitan developer behind some of the island’s major building projects said that if developers keep finding customers with money in their pockets they will not stop raising prices.

He suggested government should be the one to impose policies to control market value but warned that aiming for sustainable development will in turn contribute to prices skyrocketing.

“If we have a problem with public open spaces, let us create them but let us not stop construction,” he insisted, advocating for high-rise development rather than horizontal expansion.

Portelli was part of a panel at KPMG’s Future of Malta’s Property Market conference.

Faculty for Built Environment dean, Alex Torpiano, disagreed with Portelli and recalled how prices in the past few years have risen even when not pushing for sustainable alternatives. 

KPMG Senior Manager Rachel Decelis explained how investing in sustainable options will lead to more savings in the future.

“At the end of the day, people will still pay, as global warming and overall climate change will cash out on further taxes unless society doesn’t start to think of a sustainable way of building,” Decelis said.

MaltaToday senior journalist James Debono mentioned how both political parties in government could have done more to rein in the sector but did not.

Debono argued that revising local plans would not reverse the effects left on the country’s environment and would be positive if aimed at restricting development rather than allowing more of it as happened in 2006 when development zones were extended and in policy changes enacted after 2013 which allowed more floors.  

He referred to statistics showing how these changes led to more permits; with 38,000 permits for dwelling  being issued between 2004 and 2007 and 42,000 permits issued between 2016 and 2019.

Planning Minister Stefan Zrinzo Azzopardi said the government is demanding change from the construction industry. He cited the creation of a board in the first quarter of 2023 to issue guidelines establishing the quality and aesthetic criteria of buildings.

He called for more clarity from banks on the ESG criteria they are requesting when evaluating financing of projects.

Several panellists agreed with comments passed by developer Sandro Chetcuti earlier that local plans should be revised with better planning.

Opposition planning spokesperson Stanley Zammit said government should initiate change and then people will follow. “A change in culture is needed and this could be achieved through education,” Zammit said.

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