Bank of Valletta is the main sponsor of a study into the construction and real estate industry commissioned by the Malta Developers Association (MDA) with the aim of having clear and reliable indicators for this industry. The study was launched on Thursday, 12th January under the auspices of Prime Minister Joseph Muscat at the Auberge de Castille.
The study, to be conducted by KPMG, will appraise the construction and real estate industry through a number of quantitative research tools including a property market analysis. MDA President Sandro Chetcuti said that this exercise was part of their vision to have a more professional approach to this sector.
Consisting of an initial project and two annual updates, the ‘Economic Study on the Maltese Construction Sector and the Property Market', will yield a report containing a property stock situation, an index of how affordable domestic real estate is as well as a number of criteria defining the price sensitivity of property with regards to other characteristics such as the location and dwelling type.
Albert Frendo, Chief Credit Business Development Officer, said, “The banks in Manta distinguished themselves during the financial crisis of 2008 because of the prudent approach they adopted. This remains very valid today. In fact at Bank of Valletta, we have always believed in supporting the construction and real estate sector in a sustainable manner.” Referring to the study, Mr Frendo said that the Bank embraced the initiative by the MDA from inception in its endeavour to better understand the drivers underpinning this sector. “We look forward to the results in June and the insights gained to the way this sector is evolving,” he concluded.