MDA optimistic about real estate despite end of citizenship-by-investment scheme

The Malta Developers Association (MDA) has reacted to Malta’s decision to abolish its citizenship-by-investment programme, expressing disappointment with the recent European Court of Justice (ECJ) ruling while acknowledging the shift towards a merit-based citizenship model.

“The Malta Development Association has already expressed its disappointment with the recent European Court of Justice ruling, which disregarded the positive economic contribution of the MEIN programme and the Legal Opinion of the ECJ’s own Advocate General,” the association told BusinessNow.mt. However, it acknowledged the Government’s new direction, stressing that similar positive outcomes are achievable if there is a “sustained, focused effort to attract meaningful investment.”

Addressing the impact of removing the property purchase or rental requirement on the luxury property market, the MDA highlighted the structured benefits provided by the previous programme. “The previous programme provided a clear and structured link between property and citizenship, which contributed to consistent activity in the high-end market,” it explained.

The association emphasised that while the new merit-based system does not mandate property acquisition, it also does not preclude investment in real estate, stressing that continued demand will depend on the Government’s efforts and the calibre of applicants attracted.

When asked about the significance of the citizenship-by-investment scheme in driving luxury property sales in recent years, the MDA acknowledged its role, noting that the programme had positively influenced the premium property segment, “not just through statutory requirements but also by attracting individuals inclined to invest further in Malta.”

Nonetheless, it maintained optimism about the potential for continued interest under the new system, provided the Government positions Malta as an attractive and stable option.

Regarding investor confidence in Malta’s real estate sector following the shift to a merit-based citizenship model, the association pointed out that the previous framework offered “legal and procedural clarity,” making planning easier for developers and investors. “The new merit-based system is more discretionary in nature, but that doesn’t mean it lacks potential,” the MDA stated, emphasising that investor confidence could remain strong if the process is “guided by consistency, transparency, and results-driven policy.”

Concerning potential negative impacts on developments targeted toward foreign nationals, the MDA acknowledged that some projects had been designed specifically with the old citizenship programme in mind. However, it asserted that Malta’s inherent attractiveness remains unchanged, stating, “much depends on how this new model is communicated and implemented.”

The association emphasised the importance of the Government’s commitment, clear market signals, and targeting the right applicants to ensure ongoing international interest and investment.

“The MDA remains confident that Malta can continue to attract serious, value-driven investment under this new model,” the association concluded, pledging its support to maintain Malta’s competitiveness through strategic policy, clear communication, and consistent execution.