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14 maltatoday | SUNDAY • 17 FEBRUARY 2019 NEWS ANALYSIS Malta's building boom: how planning policies triggered a construction explosion EXPERTS concur that fuel- ling the current increase in the number of permits issued by the Planning Authority are planning policies, which en- courage developers to redevel- op existing two-storey dwell- ings into higher apartment blocks. The figures indicate that most permits issued are being issued for the demolition of exist- ing houses, "generally terraced houses, and their redevelop- ment into apartment blocks" according to Tara Cassar, an architect working with Flimk- ien Ghal Ambjent Ahjar. She adds that the process has been "aided through piecemeal modifications of planning poli- cies". Kamra tal-Periti President, Simone Vella Lenicker, attrib- utes the trend for the re-devel- opment of single-unit two-sto- rey terraced houses into five- or six-storey apartments to the Development Control Design Policy approved in 2015. "Most of our towns and villages are being irrevers- ibly altered as this process of transformation from single to multiple unit dwellings contin- ues." But policy changes trigger- ing development in towns and villages pre-date the present administration according to ar- chitect Colin Zammit. "It was not a good idea to bring all village schemes prac- tically to semi-basement, three floors plus penthouse during the PN years". He also notes that the present administration has established a 16.8m or 17.5m height, which ef- fectively translates "to four floors plus penthouse from road level". "In my opinion, these were mistakes upon mistakes. The villages should have been left alone and demand for units di- rected towards the north har- bour and southern areas closer to the sea where heights of 8 to 10 floors should be permitted, if necessary". He also notes that in a reflec- tion of the present administra- tion's 'pro business' and 'pro investment' policies the PA immediately updated and fi- nalised several policies, which "were old, out of date or sitting on a shelf for years". The only documents yet to be finalised are the local plans. "The government was elected on the ticket of reducing bureaucra- cy. The PA certainly obliged". Foreigners fuelling boom But this change is also hap- pening in an economic context. "The financial and tourism sectors have triggered an influx of foreign workers who have settled here. This has made the letting sector very attractive and consequently local devel- opers and buy-to-let individu- als have increased investment and the supply of properties," notes architect Colin Zammit. As a result of this "rents have gone up in villages from €400 per month to €700 per month. In the north harbour area from €1,000 per month to €1,500 per month". But Vella Lenicker points out that the surge in permits could be itself contributing to the rise in prices. The surge in applications is taking its toll on the construc- tion industry, which according to Vella Lenicker is currently "stretched to its very limit". "Players in the field are find- ing it very difficult to cope with increased demands in terms of qualified human resources, supply of materials and provi- sion of equipment". This has also, inevitably, "led to an increase in costs of con- struction, thus further fuelling the increase in property asking prices". Vella Lenicker contends that the current economic growth is a direct result of the large influx of foreign workers and the resultant increase in con- sumer spending. "The increase in population brings with it an additional demand for accommodation, particularly rental properties. Planning policies, such as the relaxation of height limita- tions, assist this process". Colin Zammit contends that the economic boom has been triggered "by several little cir- cumstances and not by one move or change in policy only". "What is for sure is that this government did in fact reduce bureaucracy… sometimes too much in my opinion, but that's 2018 saw the Planning Authority approving nothing less than 12,885 dwellings – nearly five times as many permits issued in 2013. MaltaToday caught up with three architects and asked what lies behind the latest surge? "Several areas of Gzira and Sliema still have a lot of badly-built buildings from the 1950s and 60s which allowed for re-development once building heights were increased" Colin Zammit "The resultant blank party walls and dissonant streetscapes have become the new norm" Tara Cassar JAMES DEBONO Highest ever number of dwellings approved in 2018 119,886 new dwellings approved since 2000, 24.5% approved in just 3 years Lower number of ODZ permits, 139 , since 2009 376% increase in planning permits since 2013 0 2K 4K 6K 8K 10K 12K 0 0.85 1.69 2.54 3.38 4.23 5.08 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Number of permits ODZ as % of total permits TOTAL ODZ dwellings % of total Number of dwellings approved Nationalist administration Labour