MDA estate agents section wants ‘greater transparency’ in management of government-owned land

The Malta Development Association’s Estate Agents Section has called for greater transparency in the management of government land.

The statement comes following criticism towards the housing minister by the developers’ lobby and the Opposition over the affordable housing projects. They claimed the projects will lead to wide speculation in the property market.

The concept, which is being developed by a newly established foundation between the government and the Catholic Church, hopes to sell apartments at below-market costs to create a new supply of affordable housing.

While agreeing with initiatives which “genuinely help first-time buyers enter the property market”, Michael Bonello, CEO of Alliance Real Estate Group and Head of the Estate Agents within the MDA, said such schemes must be carried out in a manner that is fair, competitive, and transparent.

“We caution that any housing scheme must avoid creating distortions in the market or unintended incentives that could undermine fairness and transparency,” he said.

He insisted “government-owned land should be managed transparently, and in a manner that safeguards public trust and ensures the best possible outcome for the market and the tax-paying public.”

Bonello said land costs typically represent around half of the final price of a property, so how government land is allocated significantly impacts affordability and market fairness.

“Our position is that, ideally, the government should develop such land itself and sell the units directly,” he insisted. “If private developers are to be involved, the process should be opened through a proper public tender or similar transparent mechanism, giving all interested parties, including those who have alrsceady expressed their interest, an equal opportunity to participate.”

The MDA’s estate agent section head said government-owned land is a “national asset”, and it is essential that it is allocated in a manner that serves the public interest, promotes healthy competition, and supports long-term market stability.

“Real estate agents represented in the EAS stand ready to collaborate with government and stakeholders to develop sustainable, transparent solutions that balance market realities with social needs,” he concluded.