Maltese Government greenlights public land transfer to address affordability crisis

In a positive step toward tackling Malta’s growing housing affordability crisis, Parliament has officially approved the transfer of public land to the Foundation for Affordable Housing (FAH), clearing the way for a series of new housing developments targeted at lower-middle income earners.

This initiative aims to support individuals and families who find themselves in a widening affordability gap – those who earn too much to qualify for social housing but not enough to purchase property at current market rates.

The developments, which will be constructed in St Julians (Ta’ Ġiorni), Kirkop, Fgura, and Marsascala, are set to offer units at prices considerably below prevailing market levels.

Jake Azzopardi, CEO of the Foundation for Affordable Housing, emphasised the critical need for the initiative.

“The rise in property prices has created what we call the ‘stretched class’, which are hardworking people earning a decent wage who still can’t secure a home,” Dr Azzopardi said.

He continued: “Average income earners cannot secure home loans strong enough to cover market prices, and people are left stuck, either living with their parents or paying rent that takes up a substantial amount of their income.”

Dr Azzopardi underscored that the initiative is not based on short-term relief, but on long-term sustainability.

“This isn’t a subsidy or charity model. It’s a sustainable and realistic approach to homeownership,” he said, highlighting the broad collaboration behind the project.

He credited the Government, the Church, various partners, and the FAH team for the work that led to this milestone. Dr Azzopardi described the launch as a pivotal moment, capable of making a meaningful, generational impact on Maltese society.

Echoing that sentiment, Matthew Zerafa, CEO of the Housing Authority, reaffirmed the broader institutional commitment to the cause: “The Authority will remain committed to supporting anyone wishing to enter the affordable housing sector, so that more young families can achieve home ownership,” he said.

Established in 2022, the FAH was created as a joint initiative between the Maltese Government and the Archdiocese of Malta. The foundation is overseen by a six-member Council of Administrators, with equal representation: three members appointed by the Government and three selected by the Archdiocese.

Just last week, data from the newly released Malta Property Landscape – A True Picture revealed that property prices increased by 11.4 per cent in the one-year period between 2023 and 2024. This means that a property priced at €100,000 in 2023 would have cost €11,400 more by 2024.

The report also revealed that between 2013 and 2023, housing prices in Malta nearly doubled, marking an approximate increase of 100 per cent over the ten-year period.

Construction costs also surged, rising by approximately 33 per cent in just two years between 2020 and 2022.

The approval of this initiative not only responds to a critical social need but also helps alleviate Malta’s housing challenges by potentially contributing to a more balanced market and sustained economic growth.