Every year, Malta attracts over 2.5 million tourists. They bring in a lot of money, but they drive up property prices and make housing increasingly unaffordable for locals. That's a problem in the world's tenth-smallest country, which is also one of the most crowded, ranking ninth in global population density. The urgent need for affordable housing has only intensified in the wake of the COVID-19 pandemic and rising energy costs.
Malita Investments has been addressing this critical issue since 2016. The quasi-public institution plans to deliver 752 apartments, and 698 parking spaces and garages by 2026.
At the forefront of this project, Chief Executive Jennifer Falzon leads the charge to build homes for individuals struggling to find stable housing or facing rent that consumes a large portion of their wages.
The goal of Malita's project is to help residents transition to stable, self-sufficient living situations while addressing the urgent need for affordable housing.
“The Housing Authority in Malta assesses the financial status and progress of candidates,” says Falzon. “After continuous assessment, if a family can now afford their own property, the Housing Authority makes the apartment available for someone else who is in need.”
“We want to ensure that those who need it the most have the opportunity to benefit from this project,” says Jean-Charles Flaus, a loan officer at the European Investment Bank, which is financing half the project cost.
The project spans ten locations in Malta. To date, 392 apartments, 253 garages, and 37 parking spaces have already been completed, with most of these units in Luqa, near the capital Valletta and the airport.
Affordable and sustainable
As Malta grapples with its housing crisis, innovative solutions are essential. Malita Investments not only addresses the urgent need for affordable housing but also emphasizes sustainability in its initiatives.
There is much more in the pipeline, but Malita Investments’ housing initiative is not only about quantity. The company aims for sustainability and efficiency.
The apartments incorporate a range of energy efficiency initiatives to make sure that the development also aligns with climate goals. In the Luqa project, solar panels with a capacity of 400W are installed for each apartment, reducing dependence on other electricity sources. Designs intentionally minimise dead space by eliminating long corridors and avoiding oversized rooms, ensuring effective use of every square metre.
The most innovative feature of the housing units is the incorporation of thermal insulation on the top floors. The insulation helps reduce heat gain, in this hot country. That significantly lowers the energy required to cool the apartments below. Residents of these units can now minimize their need for air conditioning during Malta’s hot summers, a boost for the environment and the apartments’ affordability in the long run.
In addition to making the apartment itself affordable, Malita also ensures that residents won't face the big utility bills that plague cheaper, older accommodations. “This will ensure that everyone has basic rights to housing,” says Falzon, “regardless of their income."
EU financing arm fills the market gap
Financing for this kind of project in Europe is not easy to come by, particularly in smaller countries where rising costs often exceed the financial capacities of local governments and residents. This is why the European Investment Bank is financing Malita Investments' Luqa housing project, which is part of a larger initiative to deliver 750 affordable housing units by 2026. Back in 2017, the EIB provided a €24.7 million loan for the overall program, and now, in 2024, it extended an additional €22 million specifically for the Luqa project, aiming to fill the gap where local funding may fall short.
“We’re responding to the shortage of affordable housing for middle-income residents,” says the European Investment Bank loan officer Jean-Charles Flaus. “The need is urgent, and we are pushing forward to make a real impact.”
The first phase of the project in Luqa included the development of Malta’s largest affordable housing project. Now, the focus is on ensuring that projects across Malta meet rising demand for affordable housing.
Future-focused living
Rather than eating up more land in this small country, Malita also plans to expand its properties upwards – by building new floors on top of what they already have.
The initiative prioritises low - and middle - income families, too. Located close to their current schools or jobs, the units provide basic furnishings to help residents transition smoothly into their new homes.
“We’re here to ensure that everyone has a place to call home,” says Jean-Charles Flaus. “This is just the beginning.”
MALTA SOCIAL HOUSING
Construction of social housing units to be implemented in the years 2016-2020 as part the current programme of social housing development in Malta
