Property on promise of sale agreements hit record €5.1 billion in 2024

Malta Development Association toasts record-breaking year for property sector as 16,739 promise of sale agreements are valued at €5,110,103,735

The value of property on promise of sale agreements in 2024 stood at a record-breaking €5.1 billion
The value of property on promise of sale agreements in 2024 stood at a record-breaking €5.1 billion

The property on promise of sale agreements concluded in 2024 was valued at an eye-watering €5.1 billion, according to the Malta Development Association.

The MDA, a major lobby group for the property sector, toasted what it described a record-breaking year that saw 16,739 promise of sale agreements being concluded.

The value of the property in these agreements represents an 11% increase over 2023 and a 5.5% increase over 2021, which held the previous record of €4.8 billion.

The data was collected by the MDA from several sources and includes both residential and commercial properties.

“This data continues to clearly demonstrate the economic growth brought about by the property sector,” the MDA said in a statement on Thursday. It described the sector as “one of the fundamental pillars” of the economy that “need to be preserved”.

The MDA said demand for property is constantly increasing and called for less red tape.

“It is necessary to address bureaucracy, which does not bring any added value, and make the necessary investments to improve quality including that of the infrastructure and more efficient buildings,” the association said.

MDA President Michael Stivala commented: “This investment benefits every Maltese and Gozitan family.”

The information on promise of sale agreements comes as an exercise carried by MaltaToday revealed that applications for planning permits increased by 12% in 2024.

Using data that is publicly available on the Planning Authority website, the exercise showed that 8,717 planning applications were filed last year, an increase of 1,115 over 2023.

The number of planning and zoning applications only offers an indication of the state of the construction industry because planning permits are submitted for a wide range of works, from residential blocks to agricultural stores and reservoirs.

Nonetheless, the figures derived by this newspaper for planning permits and those presented by the MDA for promise of sale agreements both suggest a resurgence of investment in the property sector after a two-year dip.