RE/MAX Real Talk: Exploring Real Estate, ESG, and the Path Ahead
ESG issues are becoming increasingly important as sustainable practices and the real estate investment industry converge. These topics took centre stage at the recent Real Talk debate, which included politicians, real estate professionals, and industry experts. This high-level event, which was held last month by RE/MAX Malta at the Eden Cinemas, was intended to encourage conversations about what the future holds for Malta’s thriving real estate market.
A distinguished panel, consisting of the Minister for Public Works and Planning, Dr Stefan Zrinzo Azzopardi, Bank of Valletta, CEO, Kenneth Farrugia, the Chairman of the Malta Developers Association, Michael Stivala, the Chairperson of the Vassallo Group, Natalie Briffa Farrugia, RE/MAX Chairman, Kevin Buttigieg, together with architect, Justin Mizzi, explored a range of topics at the Real Talk debate. The evolution of the industry, the need for restructuring, financing, green construction certifications, the uptake of renewable energy sources, and the social effects of real estate were all topics covered in-depth. These elements are transforming the way we perceive properties, including their energy efficiency, waste management, and community involvement. The panel was moderated by Hailey Still (RE/MAX Europe) and Joseph P Theuma (COO, RE/MAX Malta).
The Real Talk debate started with Minister Zrinzo Azzopardi who gave the opening remarks before the discussion kicked off. He emphasised the need for real talk in the real estate industry. While praising the industry’s accomplishments, he emphasised the need to reassess the formula for success in light of upcoming difficulties and adapt it to the national agenda and European laws.
In Malta, purchasing real estate has always been a significant investment, with many people investing their lifetime savings. To protect these savings and draw in new investments, the government must discover economic solutions and models. The sector’s expansion should be in line with the requirements of the country, the future planning that the country is undertaking, as well as the new realities that need to be implemented in order to see that we remain in line, not only with European regulation but also with the new trends that the future holds.
Minister Zrinzo Azzopardi emphasised the significance of sustainability for Malta’s real estate future. It is essential to consider not only the legislative aspect of energy efficiency and buildings but also the national trends, needs, and traits. Public discussions are being held to make sure new designs adhere to the sustainability guidelines for buildings that have previously been established by the Building and Construction Authority. Together with the rest of the European Union, Malta is dedicated to achieving the decarbonization of the economy and must take the necessary steps in that direction.
The panel also discussed the increase in promise of sale agreements—which rose by 16% while deeds of sale fell by 13.7%. According to Michael Stivala, chairman of the Malta Developers Association, this expansion demonstrates the sector’s upbeat momentum. However, the sector must work to provide expert services and guarantee that developers are prepared to complete projects on schedule. To provide customers with a better experience, excessive bureaucracy and complicated processes involving banks and notaries need to be addressed to provide a better experience for clients.
The need of addressing sustainability was emphasised, and Natalie Briffa Farrugia appealed for cooperation among banks, developers, investors, and architects. Together, they can develop structures that are more cost-effective, sustainable, and energy-efficient.
Kevin Buttigieg emphasised the need for collaboration and deadline observance in order to provide clients with a satisfactory product. Implementing penalties might be necessary, but stakeholders should carefully consider potential bureaucratic implications. Significant progress may be achieved by prioritising sustainable practices and committing to a shared objective.
In order to maintain the sector’s average growth rate, architect Justin Mizzi talked about the rise in real estate prices and the necessity to enhance the infrastructure, services, and quality. He also emphasised how new incentives and cultural changes are spurring more interest in historic structures. The restoration and rehabilitation of heritage buildings present long-term investment opportunities.
Kenneth Farrugia, CEO of BOV, highlighted the real estate industry’s multiplier effects and its contribution to Malta’s economic development. He underlined the value of quality, service, and green initiatives in strengthening the overall proposition. Banks are essential in fostering behavioural shifts and funding the greening of the economy. Financial institutions are distinguished from one another in a cutthroat market by quality, knowledge, and service.
A lively Q&A session that covered subjects including green funding, community engagement, technology breakthroughs, and regulatory frameworks followed the Real Talk discussion. The crowd showed a sincere interest in green real estate practices.
Driving positive change in the real estate sector is the participants’ stated shared goal. Despite obstacles, cooperation and dedication guarantee Malta moves in the right direction. The real estate industry has the potential to spur sustainable growth and serve as a model for other industries.