Easy does it: Cordina proposes idea to generate €250m yearly
David Darmanin
At the General Retailers’ and Traders’ Union (GRTU) AGM held yesterday morning, economist Gordon Cordina floated an idea which could realistically generate the tidy sum of €250 million per year to the Maltese economy.
The sale of vacant properties in holiday areas to foreigners seems to be a potential cash cow, and few people have so far worked out its real potential value.
“The stock of vacant property has an estimated imputed annual income of €535 million – 10 per cent of the country’s GDP,” Cordina said.
Members of the Federation of Estate Agents have many a time complained about the lack of quality property stock available to foreigners relocating to Malta for work purposes, especially after so many iGaming companies set up base on the island.
On his part, GRTU’s own vice-president Sandro Chetcuti has recently been heard presenting proposals on how to revive a weakening local construction industry.
“A possible approach would be to identify developed areas with a potential for international real estate marketing involving possible redevelopment employing the construction sector,” Cordina said, while also pointing out that the adoption of a favourable tax regime for property in target areas and a sustainable development approach would be required for this concept to work out.
In 2007 alone UK citizens purchased a total of 242,000 properties outside their country of residence. With 42.4 per cent buyers choosing Spain and France as their destinations of choice, Mediterranean countries seem to be the best preferred of the lot.
This opportunity may be realised if “Malta were to capture 0.8 per cent of the UK market,” Cordina noted. “Scandinavian markets also present considerable potential.”
