INTERVIEW | Sandro Chetcuti: Representing developers: Yes, but not only

Sandro Chetcuti founded and runs the Malta Developers’ Association. Business Today met him to ask about the state of the construction industry in Malta, the threat posed by ‘cowboy developers’ and the MDA’s concerns for the industry should prime minister Joseph Muscat step down

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What motivated you to get into the development industry?

10 years ago I was already giving my input to another union, working on a section dedicated to the real-estate and property industry. It was there that some members encouraged me to set up an association specifically dedicated to the property market.

With the help of Architect Michael Falzon who had set up the Planning Authority in Malta, we set up the MDA and filled a lacuna in the country.

There was immediate interest from the largest entrepreneurs in Malta and we continued to grow throughout the years.

Has the MDA been successful in fulfilling its core role?

We didn’t do any miracles however, we are now able to successfully voice the concerns of related parties when  meeting the authorities.

In addition, we are an efficient point of reference. One has to note that this industry includes different players such as architects, notaries, lawyers, real-estate agencies, engineers, builders, contractors and nowadays, foreigners. Therefore you have a lot of different and converging opinions which need to be addressed.

Moreover, we are tackling hands-on the issues that emerge while also anticipating the controversial issues which could be huge talking points in the future or that might cause controversies and uncertainties in the country.

We are dedicating huge effort towards ensuring compliance to regulations and importing foreign modus operandi that will bolster efficiency in our local industry.

How do you respond to criticism that  always defends the interest of developers, but does so while running roughshod over the concerns of NGOs and residents?

Perception is not everything. As president of the MDA, I can assure you that at this moment in time construction is not limited to a handful of industry established contractors within the MDA.

Many homeowners today act as developers themselves.

Thus we can’t be held responsible for every bit of unwavering criticism.

Everyone can be a key player nowadays. And this trend is becoming more apparent day on day.

Are you pleased with the current state of the property market?

More than it being a question of satisfaction, we feel responsible to secure a level playing field, ensure stability and apply pressure to amend any proposed development fallacies.

Each era has its own opportunities. For instance during and immediately after the Second World War there were a lot of businessmen who made their bones since their business acumen helped them acknowledge the potential at hand.

Business moguls aside, are you at all concerned at increasing reports of young couples no longer being able to afford their first property due to rising cost of property?

This has always existed, even my parents found it difficult. Investing in your first property has always been the biggest step of all.

On the other hand, I would like to see more responsibility from today’s youths who hold different lifestyle expectations.

You need to make sacrifices, you can’t go on living as you were before thinking of making such an investment as buying property.

At the same time, we’re continuously discussing and working on ideas related to affordable housing.

This is different from social housing, and is very important to the industry.

But, whatever the case, we should be very proud that over 80% of the population are property owners.

But do you think it’s more difficult now than ever to own a property?
It was always in our culture to invest in property, it’s a form of security to us and to our families after we move on to the afterlife.

This trend hasn’t slowed down. Recent figures from the ECB confirm this while also reveal that Malta is still amongst the cheapest countries to buy property in.

However, one must question the issue of the minimum wage which as we have been saying for the past two years should improve.
This increase should move away from C.O.L.A scales and reflect directly the realities of the country.

I know the MDA represents developers, but does it also help the man on the street?

We are very worried at the increase in number of amateur developers who are selling property off-plan and reneging on deals, often leaving buyers to suffer financial losses.

We regularly get young couples here who were blindsided by so-called ‘developers’ who not only ignore the sale agreements but even sometimes completely deceive prospective buyers.

Whilst I always urge prospective property owners to exercise diligence, we receive regular calls from the man on the street asking us if the such-and-such developer is reputable.

To this end, we keep updated records on each and every registered member within the MDA and thus can advise accordingly.

But we can only vouch for our members and often find ourselves telling prospective buyers if a developer is our member or not.

You were recently quoted as voicing concern at whether the success recorded under Prime Minister Joseph Muscat can be sustained under his eventual successor... Is the MDA worried about life in Malta post-Muscat?

During this legislature, Muscat has managed to create a tangible feel-good factor in Malta.

This is making it possible for people to invest and get into certain long term commitments and projects.

Now, we know that after every change in government that feel good factor deteriorates.

Case in point was how the feel-good factor and trust generated under Prime Minister Eddie Fenech Adami diminished immediately after he stepped down.

Muscat managed to instill that positive factor by meeting all relevant stakeholders and being upfront on his vision and expectations.

He managed to convince those he met to share his vision and it is possible that once Murcat leaves office, the positive economical rhythm that the country is enjoying could be tainted.

That is why the MDA is concerned.   And not because we are in any way concerned with the identity of people who have this far been touted as possible successor to Muscat.

Muscat had a vision like Eddie Fenech Adami and George Borg Olivier, and he wasn’t afraid to take risks to achieve that vision.
However, you can rest assured our mission will continue, irrespectiveirrelevant on who’s at the helm of the country.

And finally, one word to describe the following ...

Joseph Muscat?

Success.

The opposition?

Hope.

The cost of living in Malta?

Bearable.

The outlook for the construction industry in Malta in the years to come?

Positive.

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