Issue link: https://maltatoday.uberflip.com/i/1405706
What major take-aways emerge from the last KPMG report on the construction industry and property market in Malta? In the 5th Edition of the Construction Industry and Prop- erty Market Report, we analysed a number of themes rang- ing from topics on property pricing and affordability, to per- spectives on the future trajectory of the industry. We also updated a number of key metrics which gauge industry and market performance. Some of the main points of interest from our latest report are the following: During 2020, the level of Gross Value Added (GVA) attrib- utable to construction activities increased by 4.3% over 2019. is is a slower rate of growth than seen in recent years; however, construction remains one of the few sectors to have seen economic growth during the COVID-19 pandemic, in part being supported by Government incentives. By way of comparison, total GVA in the economy shrunk by 4.3%. e broader construction and property industry (includ- ing quarrying, the manufacture of construction material, engineering and architectural services, real estate services, and similar related activities), accounted for approximately 11.6% of total GVA during 2020. is is a relatively higher proportion of total GVA than usually noted, mostly due to the overall decline in the size of the economy as a whole. We expect this to be a temporary phenomenon until the rest of the economy recovers from the effects of the pandemic. We estimate that around 25,500 jobs are in some way di- rectly linked to the construction and property industry. "is covers jobs directly created by the industry, and the number would be notably larger if one includes jobs indirectly cre- ated within suppliers to the industry (indirect employ ment effects), and induced jobs created as a result of expend iture by industry employees (induced employment effects)." Over the years, two main points have become increasingly apparent during our discussions with industry stakeholders: ere are operators within the industry who would wel- come serious efforts to regulate the sector and improve Moving from micro permitting to macro planning STEVE STIVALA IS AN ASSOCIATE DIRECTOR AT KPMG MALTA, LEADING THE ECONOMICS TEAM WITHIN THE ADVISORY FUNCTION. HE PROVIDES THE ECONOMIC BACKGROUND AND SPECIALIST KNOWLEDGE REQUIRED IN A FIRM PROVIDING MULTI-FACETED BUSINESS SOLUTIONS TO CLIENTS. STEVE'S MAIN AREA OF EXPERTISE IS ECONOMICS AND REGULATION, WHICH BRINGS TO THE TABLE AN ECONOMIC PERSPECTIVE TO CLIENT PROBLEMS, USING BOTH QUANTITATIVE TOOLS (ECONOMETRICS, SIMULATIONS, DATA ANALYTICS) AND QUALITATIVE INSIGHT (ECONOMIC PRINCIPLES). PAUL COCKS SPOKE TO HIM ABOUT VISIBLE TRENDS IN THE CONSTRUCTION INDUSTRY AND PROPERTY MARKET IN MALTA. INTERVIEW 6 29 AUGUST 2021