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News | Sunday, 23 May 2010

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More new homes built on virgin land in 2009

55% of new dwellings approved by MEPA were on undeveloped land, but new permits are less than half of what they were in 2007 ‘planning spree’

Further stress on Malta’s land use last year was precipitated by the approval of more housing on virgin and previously undeveloped land by the Malta Environment and Planning Authority.
55% of all new dwellings were on undeveloped land – a reversal in recent trends which pointed at a decrease in the percentage of dwellings approved on virgin land, thanks to the increase in conversions and re-developments of existing buildings.
In fact permits for new houses built on previously developed land represented 60% of the total approved in 2005; and 53% of the total approved in 2006.
This represented a dramatic change from land use patterns in 2000 when 70% of approved new dwellings took place on virgin land.
The reversal of the trend favouring development in built-up areas in the past two years, could reflect the release of new virgin land for development through the rationalisation exercise carried out in 2006.
Although the share of new dwellings on virgin land is once again increasing, the actual number has seen a sharp drop in the past two years. New permits for homes nosedived from an all-time high of 11,343 in 2007 to 5,298 in 2009.
And in what could be an indication of a slump in the property market, 2009 saw the lowest number of dwellings approved since 2001.
Overall a staggering 69,433 new dwellings were approved in the past decade, 44% of which were approved in a planning spree taking place between 2005 and 2007, which coincided with the relaxation of building heights and the resultant construction of apartment blocks in town centres. This led to 90% of all new dwellings in 2007 consisting of apartments, compared to 64% back in 2000.


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