MONEY ISSUE 81

URBAN WEAVERS

Peter Brincat + JingYao Xu / 20

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Editor’s note — Welcome to the latest edition of Money, a special issue exploring the intersection of real estate and sustainability. In this issue, we delve into the transformative trends shaping the future of our built environment and the innovative practices driving sustainable development.

Our cover story, "Urban Weavers," features an in-depth conversation with Peter Brincat and Yao Xu, the visionary co-founders of Box Concept Studio. Renowned for their commitment to blending heritage with modernity, Brincat and Xu are at the forefront of reshaping Maltese architecture. Their work exemplifies how thoughtful design can foster community, enhance sustainability, and inspire future generations. From the Eco-Luxe Residence, which integrates solar panels and natural ventilation, to large-scale projects like the ODCY Hotel in Qawra, their projects set new benchmarks for environmental responsibility and aesthetic excellence.

In our comprehensive article, "Building Greener," Ing. Stephen Mallia provides a detailed account of Malta's journey towards aligning with the European Commission's stringent directives on energy efficiency and renewable energy integration. This piece underscores the urgent need for ambitious measures to bridge the gap between current practices and future sustainability goals, making it a must-read for anyone interested in the future of real estate.

We are honoured to feature an interview with Andre Pizzuto, President of Kamra tal-Periti, who provides a candid look at the current state of Malta's construction industry. Pizzuto emphasises the need for a comprehensive regulatory framework and skilled labour to prevent further tragedies and improve the industry's reputation. His insights underscore

the critical importance of accountability and proactive measures to ensure safety and sustainability in construction.

Simone Vella Lenicker's feature, "Brown or Green?" dives into the complexities of property valuation in the context of sustainability. Lenicker explores how energy-efficient and resilient properties are gradually becoming more valued by buyers. She argues that the concept of a 'green premium' is evolving, with sustainability increasingly influencing property worth and driving market dynamics towards more responsible building practices.

Additionally, we celebrate Halmann Vella's 70th anniversary, marking a legacy of excellence and innovation in the construction industry. CEO Kevin Rapinett shares insights into the company's commitment to sustainability

through eco-friendly building materials and cutting-edge manufacturing technologies. Their journey from a family-run enterprise to a leader in sustainable development exemplifies how tradition and innovation can coexist harmoniously.

As we navigate the complexities of real estate and sustainability, we hope this issue inspires you to think critically about the spaces we inhabit and the legacy we leave behind. Together, we can build a future that is not only resilient and efficient but also beautiful and enriching.

EDITOR Anthony P. Bernard

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All rights reserved. Reproduction in whole or in part is strictly prohibited without written permission. Opinions expressed in Money are not necessarily those of the editor or publisher. All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be held responsible for errors or omissions in articles, advertising, photographs or illustrations. Unsolicited manuscripts are welcome but cannot be returned without a stamped, self-addressed envelope. The editor is not responsible for material submitted for consideration.

without Borders Read more on page 40

Storytelling

Taking the bull by the horns

In the past few weeks, one man died in a building site collapse, and two others had a lucky escape in another. In the past five years, high-profile deaths of innocent bystanders like Miriam Pace and Jean-Paul Sofia have pushed the need for action to the forefront. Kamra tal-Periti president Andre Pizzuto spoke to Vanessa Macdonald about the need for action.

Brown or green?

Sun, sea and scarcity

Climate change is a pressing reality for Malta, an island facing environmental changes threatening its tourism and agricultural sectors. As temperatures rise, rainfall decreases, and sea levels continue to climb, Malta is challenged to sustain its economic pillars while adapting to a changing climate. In this context, Alex Torpiano explores the implications of these changes and highlights the urgent need for adaptive strategies to safeguard the island's future.

The illusion of preservation

Victor Paul Borg delves into the government's recent planning brief to preserve Gozo's character by mandating the use of globigerina limestone for new buildings. Announced on 14 February, this measure mirrors a 2015 policy, raising questions about the effectiveness and sincerity of these so-called reforms.

Sustainability at a crossroads

Urban weavers

The real estate industry stands at a junction in several critical areas of the buying process. Simone Vella Lenicker questions whether the industry's future lies in its green credentials or conventional brown attributes, asking what drives value in today's market. 12 16 30 32 36 40 46 52 24

Dayna Camilleri Clarke sits down with Peter Brincat and JingYao Xu, co-founders of Box Concept Studio in Floriana. Renowned for their innovative designs and commitment to relevance, Brincat and Xu are reshaping Maltese architecture by creating commercial spaces that blend data-led research with spatial artistry, foster community, and inspire future generations.

As property continues to be a primary investment vehicle, appreciating due to limited space and strategic location, the sector also grapples with significant environmental and social consequences. Ing. Therese Galea analyses the dual impact of Malta's real estate boom.

Storytelling without borders

Jon Calleja and Ken Chircop, the creative minds behind Everhouse, share their insights on venturing into new markets, finding the perfect blend of creativity and commercial appeal, and leveraging technology to enhance their storytelling. Committed to delivering exceptional interiors and cultural narratives, Everhouse aims to inspire and enlighten a global audience.

Getting workplaces working

Justin Mizzi analyses the evolving landscape of traditional office spaces in a post-COVID world. Offices must transition from obligatory workspaces to desirable environments that attract and retain talent. This transformation is driven by technological advancements, changing workforce demands, and the need for compelling benefits that remote work cannot offer.

Developing

In the shadows of seemingly legitimate business dealings and construction sites, a new form of organised crime festers, thriving on exploiting the very essence of life: our environment. From unlawful waste dumping to unpermitted urban developments, the ecomafia represents a dire threat to ecological balance and community welfare. Manuel Delia delves into the sinister operations of these environmental bandits.

JP Fabri explores the current state of Malta's real estate, the European movements towards sustainability, and lessons from global benchmarks that could help Malta align with international standards, fostering a safe, efficient, and sustainable real estate ecosystem.align with international standards, fostering a safe, efficient, and sustainable real estate ecosystem.

Eco Revolution

Paul Rostkowski examines the burgeoning field of sustainable real estate in Malta. By integrating ESG principles, investors increasingly demand properties that offer financial returns and contribute positively to the environment. This paradigm shift presents unique challenges and promising opportunities for Malta's robust real estate market.

Building greener

In the race to combat climate change, the European Commission's directives for the building and real estate sectors are pivotal pillars of the continent's ambitious environmental agenda. Ing. Stephen Mallia delves into Malta's journey towards aligning with these directives and its transformative potential for the island nation.

Property dreams vs reality

Buying property in Malta is increasingly challenging, particularly for young, unmarried couples grappling with skyrocketing prices and stagnant salaries. Luca Caruana explores strategies for tackling Malta's real estate market, offering insights into sustainable purchasing and financial planning tailored to unmarried couples.

62

Beyond sustainability

Ed Muscat Azzopardi explores the revolutionary shift from mere sustainability to regenerative construction. Discover how visionaries like Steve De Micoli are redefining industry norms to build environments that don't just sustain but actively enhance the ecosystems they inhabit.

MONEY's columnists —

a former

and journalist, is a wordsmith extraordinaire. With a knack for crafting impeccable marketing text and brand manifestos, she effortlessly balances grammar and brand voice. Throughout her varied career, Dayna has shaped narratives and inspired colleagues and clients alike to lead global brands.

Ed was born in 1977 and is, to the disappointment of many, still not dead. He tells stories for a living, engages in a host of activities that don’t involve actual physical activity, and likes food, film, travel, and cameras.

JP is a founding partner at Seed, a multi-disciplinary advisory practice.

Justin is a real estate valuer and advisor at Archi+.

is

Paul is the CSO for a local alternative investment fund manager in Malta. He has extensive experience in local and international asset servicing operations, focusing on UCITS and alternative investment funds.

Stephen is a freelance product regulatory compliance expert and mechanical engineer with over 13 years of experience in the field, providing practical client-focused advice.

Vanessa had every intention of retiring but so far has been caught up by exciting freelance projects and voluntary work.

Victor is an investigative journalist with more than two million words and hundreds of pictures to his name, in books, magazines, and newspapers in every corner of the world.

Dayna,

newspaper editor

Manuel

a civil society activist and writer.

Source: Times of Malta

TAKING THE BULL BY THE HORNS

In the past few weeks, one man died in a building site collapse, and two others had a lucky escape in another. In the past five years, high-profile deaths of innocent bystanders like Miriam Pace and Jean-Paul Sofia have pushed the need for action to the forefront. Kamra tal-Periti president Andre Pizzuto spoke to Vanessa Macdonald about the need for action.

Andre Pizzuto's message was very clear: the crisis in the construction sector is complex, and many issues must be addressed if accidents and tragedies are to be avoided.

"We cannot afford as an industry to have this bad reputation. We need to show a bit of leadership and take responsibility for the flaws, grave mistakes, and tragedies that the industry has caused in the past decades. And try to prove through action that we want to turn the page."

The Kamra tal-Periti (KTP) president, representing architects and civil engineers, wanted to clarify that disciplinary action is being taken. Last year alone, 13 architects or civil engineers were suspended—cases that are not publicised since the proceedings are private. Only when finalised are the outcomes published in the Government Gazette.

Every tragedy seems to generate a knee-jerk reaction, but he was less than impressed with what he described as the "piecemeal" approach. He said the fixes were often cosmetic rather than effective, appeasing the public outcry rather than addressing the real problems.

He identified two main factors: the lack of skills and the lack of a regulatory framework.

The first factor results from the spiralling demand for construction over the past 20 years, coupled with the voracious appetite this causes for workers, which Malta simply cannot supply. The pace might be slowing down: the Central Bank of Malta's Annual Report for 2023 reported recently that the gross value added by the construction sector fell to 3.4% from 4% the year before. However, it employed 19,000 people.

The solution was to import workers, but the speed at which this has happened has resulted in a largely untrained workforce, even on the basic health and safety measures on which their lives depend. They are unfamiliar with local construction methods and unaware that certain local materials have properties that may pose a risk.

Having certification for them is not a new idea. The Building Industry Consultative Council, now defunct, came up with the idea of the Skills Card for the sector back in 2016. It is now

CONSTRUCTION

being resurrected through the Building and Construction Authority. However, while setting the standards, it cannot address the supply issue. One solution would be to train workers.

"Architects and civil engineers have rigorous standards. But the people doing the work—the most dangerous part—are not trained and have no standards to follow. They have no one overseeing them. They very often do not even speak the language and have no experience. They are just left on the site, hoping for the best," he said.

"You cannot have amateurs who enter the market, do very high-risk jobs, and put others at risk."

He added that not only the workforce but also the contractors themselves should be certified. The KTP had supported the regulation mandating the licensing of contractors, even though it could have been more rigorous. Having a licence they could lose would act as a deterrent and improve compliance.

One problem was that they would be obliged to get liability insurance. The KTP recently met insurance industry representatives who were sceptical about the regulations, as they did not feel they should be the ones assessing who should be qualified to be a contractor.

"And rightfully so. This left us with a problem. We want everyone to be professional and have insurance, but the regulators are not providing that," he said.

This is why the KTP and the Malta Developers' Association want to set up an academy (beyond what the MDA already offers) backed by a framework with a Code of Ethics and a Code of Practice, which contractors could join voluntarily. This, he believes, would reassure the insurance sector.

However, although insurance might provide a remedy when something goes wrong, the issue is trying to avoid disaster in the first place, which brings us back to regulation—or rather, the lack of it.

"We have a system where if something goes wrong, people are taken to court. The court appoints an architect to establish whether the works were done according to the Arts

and Professions (Sengha w Arti). But there is no definition of what that is. It is determined by whoever is appointed by the court," he lamented.

In multiple cases, the court-appointed architect has been scathing about the work of other architects. The KTP can take three levels of disciplinary action. The first is an admonition, which may impact the insurance policy as it could raise the premium. The second is suspension, meaning they are not allowed to practise the profession, with all the economic consequences this entails. The third and most dramatic is revocation when the warrant is withdrawn completely. The first two are the most common actions taken, and he was unaware of any instances in which the third had been applied.

"We are not excluding that it might in the future…," he warned. The public might be clamouring for more action and for it to be timely, but Ing. Pizzuto explained that there was a procedure to be followed.

"All the evidence collected by a magisterial inquiry forms part of the criminal case and is held under lock and key by the court – we do not have access to it.

"So we have to wait for the criminal case to be concluded and then any appeal, and only then make an application for the contents of the magisterial inquiry or the criminal case.

"In many of these cases, we are still trying to get the information. In the most notorious case—that of Miriam Pace—we are at a very advanced stage. There are a couple of witnesses left to come to the Council to testify, and we can then make a decision. I expect that this will be around mid-summer," he said.

"For other cases, we are still waiting. There are things we requested that were approved by the court several months ago, but the files are still waiting to be scanned," he said, his frustration evident.

Once they have the information, the KPT does not rely on the court decision – which applies to the Criminal Code – but goes through the evidence and makes its own independent decision based on the provisions of the Periti Act.

He pointed out that the court has the authority to withdraw warrants, although it has never done so so far, referring back to the KTP for decisions.

He referred back to last year's 13 suspensions. He explained that one of those was an architect who had negligent documentation and, as the site technical officer, was negligently overseeing the works.

"Nobody died, but we still felt the need to suspend this architect. He appealed, and we won the appeal, so he had to stop working for a few months. Obviously, if this happened again, he would face a much longer suspension or a complete revocation," he said.

This brings us to the concept of site technical officers, which he admitted the KTP had always opposed. He saw this as a way to postpone the inevitable regulation of contractors, instead dumping the responsibility on warrant-holders' shoulders.

"What they did to avoid regulating the industry was to create the method statement, which has two components: a risk assessment, which the lead designers should always do, and an instruction manual on what to do.

"We cannot afford to wait any longer for whoever it may be to come up with a solution. We know what needs to be done. We have been pressing through public campaigns for the past five years to get things moving. There seems to be either an inability from a technical point of view or a resource's point of view to get things done. Perhaps there is some concern about a possible political backlash or economic downturn," he said.

However, there is another aspect that worries him: bureaucracy. "The CBM Annual Report said there had been a drop in productivity. This would mean that we are employing more people to do less work. One of the possible reasons for this is the bureaucracy we are facing when trying to get approval," Ing. Pizzuto added.

"An architectural firm would anticipate that a permit would be granted within 4/5 months, with two months to prepare the documentation, another two months to clear the contractor's services, and then a year and a half to build. This means two and a half years

You cannot have amateurs who enter the market, do very high-risk jobs, and put others at risk.

He gave the Climate Action Authority as an example. He asked how this would coordinate with existing authorities that should already have a remit to consider climate, such as the Planning Authority, the Environment Resources Authority, the Building and Construction Authority, the Transport Authority, and the Regulator for Energy and Water Services.

Indeed, this is why the KTP took the somewhat controversial step last February of teaming up with the MDA to set up the National Building Council, which aims to find ways to address the lacunae in regulation and skills.

He admitted that five years ago, he pushed to establish the BCA, but he is now more pragmatic, believing that a system of coregulation would work better.

"For example, if we need to set standards for workers, we have the reach and contacts to formulate training courses ourselves, to bring in foreign expertise that we already know through our international affiliations, and to set up an academy for people to get trained," he said.

The National Building Council would also like to see Malta adopt Eurocodes, one of the recommendations of the Sofia public enquiry. This uses software and AI for an automated documentation review, resulting in a Digital Building Permit – reducing (or eliminating) the possibility of interference and human error, apart from getting a response there and then.

This is looking quite positive at the moment, with the Government quite receptive to the idea.

from inception to end. However, because the planning permit takes a year and a half instead of five months, and clearance from the BCA to start work takes six months instead of two, the fees you have charged are being spread over a longer period, but the salaries have not. This is the productivity issue: the more bureaucracy there is, the more unprofitable the industry is…"

Ing. Pizzuto made it clear that he was not advocating against bureaucracy per se but against authorities "being set up left, right and centre, and creating processes unnecessarily to justify their existence".

The National Building Council will imminently also be issuing a call for expressions of interest from the insurance sector, and it will also be pushing for contractor licensing.

He was optimistic that the newly formed Association of Builders and Contractors, spearheaded by Michael Cutajar, would also align with the National Building Council.

"If we do not try to fix the problems ourselves, we will not get anywhere. Unless the mindset changes, it will be more of the same, and we will not see any progress," he warned.

Sun, sea, and scarcity

Climate change's toll on Malta's tourism and farms

Climate change is a pressing reality for Malta, an island facing environmental changes threatening its tourism and agricultural sectors. As temperatures rise, rainfall decreases, and sea levels continue to climb, Malta is challenged to sustain its economic pillars while adapting to a changing climate. In this context, Alex Torpiano explores the implications of these changes and highlights the urgent need for adaptive strategies to safeguard the island's future.

Whether we accept that climate change is anthropogenic or not, there is no doubt that it is a reality. The trend towards higher temperatures at the global level is a fact, as are the observed impacts, including more frequent and more severe flooding events and periods of drought. These changes can impact water resources, natural ecosystems, agriculture, health, energy use and many economic activities. These are issues that apply to Malta even more than to other places.

Malta's climate is classified as semi-arid. Recent studies (e.g., Galdies, 2022) have traced a decrease in annual rainfall in Malta (10mm over the last 50 years); an increase in yearly ambient temperatures, as well as of the maximum ambient, both by ca. 1.5°C; an increased trend for short, heavy periods of rain; a decrease in annual cloud cover over the last 50 years; and an increase in sea surface temperature, around the Maltese Islands, of ca. 0.05°C/year, over a similar period. These may sound like minor changes, but they are enough to significantly impact our lives and our economic well-being.

Climate change is expected to impact precipitation in the Mediterranean zone by about 5–6%, which is significant given our average limited rainfall and problematic for our agriculture. Heat waves are also expected to increase in length, frequency, and intensity. Ground surface temperature is expected to rise by up to 2.3°C compared to 20 years ago. A sea level rise of ca. 0.5m is also envisaged. How significant is all this?

One should start by considering water resources. Water is a scarce commodity on the islands, and it always has been. Our annual rainfall hovers around the 550mm mark. Our natural sources of freshwater comprise the upper aquifer – freshwater springs above the impermeable clay layer found in our hills – and deep aquifer systems that consist of freshwater "floating" on saltwater within the pores of our bedrock. Galleries excavated in these rocks have been used to extract fresh water for centuries. It has been estimated that these deep aquifers contain some 23 million cu. metres of water – we extract nearly 50% more! This is a severe problem since overextraction leads to seawater infiltration into the same pore structures, something which is very difficult to reverse - particularly if the recharging of the aquifers, which means

Increased desertification threatens Malta's tourism by altering landscapes and weather patterns.

rainwater percolating down the rock volume – is impeded by sealing of the top surface, by urbanisation, and by concrete or asphalt roads. The increased impermealisation of our ground surfaces leads to a more significant rainfall being lost as run-off to the sea. Due to climate change, heavier and more intense periods of rain will lead to more flooding of urban areas and a depletion of the natural aquifer.

Malta has "solved" the water problem by investing in desalination and reverse osmosis technologies so that, currently, about 60% of our water needs are produced by a relatively energy-intensive process – admittedly, gradually becoming more efficient, currently at about 2.8kWh per cubic metre of water. One estimate is that water production sequesters about 4% of the electricity consumed (Spiteri, 2015). The cost of water production is effectively subsidised, adding a further drag on our economy – although recent steps to put a price to the extraction of water from boreholes, hitherto free, are laudable.

How much water do we need? Some estimates put it at 50 billion litres per year (Sapiano et al., 2008) – the demands have certainly increased since the publication of this data. We need water for domestic use and agriculture, tourism, and industry (the latter typically comprise 60% of consumption). It is generally estimated that a resident consumes ca. 110 litres of water daily. Population increases, therefore, increase the water required for domestic purposes alone. An economy based on population increase places great stress on our water resources at the best of times. Therefore, the impact of climate change on water availability clearly impacts economic and demographic growth.

It is also estimated that the typical tourist consumes about double the amount of water a local consumes, particularly during the warmer seasons. A tourism industry which is dependent on increased numbers, therefore, imposes a further level of stress on our water resources. After the pandemic, we have seen rapid growth in tourist visits, reaching close to 3 million tourists per year – it is reported that the bed space available could cater for 50% more. The subsidised cost of water extends to the water consumed by such visitors. Has this subsidy ever been considered when assessing the socioeconomic cost of tourism? →

However, another point must be made about climate change's impact on tourism. Climate change threatens increased desertification of Malta and Gozo, a process of soil degradation – ours being already low in organic content - exacerbated by extreme weather conditions, like heavy rainfall and drought. Our countryside will suffer. Our urban areas will become more uncomfortable, particularly since we persist in removing trees and their protective canopies and replacing them with black asphalt – which is guaranteed to absorb and re-emit heat. Our large flat roof areas, protected by black bitumen membranes, add to the rise in temperature in urban areas, the so-called urban heat island effect. Indeed, the whole of the Mediterranean area is expected to become, at intervals, uncomfortably hot. This will undoubtedly change tourism patterns and perhaps thwart the predictions of continuing (perpetual?) growth in tourist numbers.

This will also save a re-configured, carefully pruned tourism industry. Despite the many declarations of intent towards quality tourism, we are still promoting numbers. Even without the impact of climate change, we are already suffering from increasing dissatisfaction with our tourism offer by visitors (not to say anything about an increasing level of dissatisfaction of the locals with the disruption tourism has on their lives). This has been the phenomenon in many other popular tourist spots in Europe – except that in many such places, action is being taken. In Seville, for example, which has about 3 million tourists a year for a population of 700,000 – statistics comparable to Malta's – the authorities are proposing to charge entry fees to the most popular Plaza de Espana. Venice is proposing an entrance fee to visit the whole city. Amsterdam is closing its city centre to cruise liners berthing at their terminals and is limiting the number of B&B facilities. Florence is combating the exodus of residents from its city centre by banning shortlets. In other words, these places are working to curtail the dominance of tourism on their local economy.

Dependence on mass tourism, particularly given the impact of climate change on our resources, will seriously damage the industry. Unfettered growth will end in decline.

The other great consumer of water is, of course, agriculture. The lack of water degrades

Climate change

will reduce precipitation by 5–6% in the Mediterranean, affecting Malta's agriculture significantly.

the soil, fosters salinisation, and depletes the limited nutrients. Wind erosion will have a more significant impact on the dry, dusty surfaces. Drought makes the soil surface hard and reduces the ability of the soil to hold water; heavy rain exacerbates this since, after a drought, the soil has difficulty absorbing water, increasing the risk of flash flooding and soil erosion – particularly of organic soil. Climate change, therefore, promises to make agriculture more complicated than it currently is. The process of soil degradation is a complex, downward spiral, leading eventually to desertification.

Suppose we consider agriculture as a vital resource to the country's economy. In that case, we need to sufficiently grasp the significance of agriculture for our food security, in other words, effectively for survival. When the recent pandemic interrupted the easy flow of food imports to the islands, mild signs of panic emerged in the powers that be. The cultivation of specific agricultural products, such as olives and grapes, but even wheat, is known to be at significant risk from temperature and rainfall changes. This phenomenon is already observed in mainland Europe, with a gradual northward shift of such cultivars. The impact of such temperature and rainfall changes on the productivity of such crops, and hence on their economic profitability, has yet to be carefully studied. Therefore, there are no directional pointers that could lead the agricultural sector to start adapting to such climatic changes.

The increase in temperature in the seas around us will also impact marine ecosystems and, consequently, will affect fisheries.

In these vital economic sectors, we seem ready to wait and see, not to work to anticipate and promote an insightful adaptation to a reality that is surely coming.

The shortage of rainwater and the changing characteristics of rain should encourage us to promote rainwater harvesting at all costs – no more kilometres of roads without underground reservoirs to collect surface rainwater. Valleys should be protected from development at all

costs to assist aquifer recharge. Tree planting should be encouraged on a large scale to create canopies to shield the ground surface – and us – from high temperatures and absorb CO2. Large areas of black asphalt and grey pavements, particularly in the countryside and urban areas, should be curtailed; permeable pavements should be made mandatory for large paved areas, such as car parks.

We should incentivise the conversion of our large roof areas, particularly in the nonresidential sector of the building stock, such as factories and schools, into green roofs. Green roofs provide shade to the underlying

buildings—reducing artificial cooling requirements and energy consumption—and positively impacting stormwater control by delaying discharge. Green roofs lower greenhouse gas emissions by absorbing CO2, reducing the urban heat island effect, improving air quality, and promoting urban biodiversity. They could also be used for urban food production!

Private enclosed gardens, particularly in the old village and town cores, should be considered strategic environmental resources – and not prime developable land - not only for their potential as an amenity but especially for their contribution to mitigating ambient temperature in urban areas. These landscaped open areas are critical to compensate for the reflective harshness of our traditional hard surfaces and to break the complete impermeability of rainwater over most of our urban areas.

They are again essential to mitigate the phenomenon of urban heat island – urban air temperatures can, as a result of this effect, be 10-12°C higher than in rural areas. With the climate change trends, this phenomenon will likely worsen. We also need these landscaped areas to purify the air in urban areas. And to improve our urban biodiversity. Indeed, tariffs should be applied to soil sealing resulting from building activities unless offset by equivalent regions in front and back gardens, permeable pavements, and green roofs.

Climate change is a reality. Apart from other things, it will impact primary economic activities, particularly tourism and agriculture. The common component in these activities is the availability of water. The non-availability of water will severely impact the financial performance of these activities. All development policies should have the conservation, husbanding and re-cycling of water as primary objectives. All development projects should be evaluated against these constraints. The total volume of carbon emissions from Malta and Gozo is minuscule compared to the global or European volumes. Therefore, even reaching the holy grail of zero emissions in Malta and Gozo is not likely to mitigate climate change, at least as far as we are concerned. I urge the same level of investment in adapting our economic activities to climate change as for mitigation, if not more.

Urban Weavers

Dayna Camilleri Clarke sits down with Peter Brincat and JingYao Xu,

co-founders of Box Concept Studio in Floriana. Renowned for their innovative designs and commitment to relevance, Brincat and Xu are reshaping Maltese architecture by creating commercial spaces that blend data-led research with spatial artistry, foster community, and inspire future generations.

In the ever-evolving landscape of local architecture, few names command as much respect and admiration as Peter Brincat and JingYao Xu, the visionary co-founders of Box Concept Studio in Floriana. With a formidable blend of creativity, decades of hands-on expertise, and unwavering dedication to proposing meaningful spaces, Peter and Yao have emerged as trailblazers in the field, reshaping local skylines and communities with their transformative designs and innovative approach to commercial development. Their work is not just about the present; it's about envisioning a future where architecture and design play a pivotal role in creating sustainable, connected, and thriving communities.

Upon meeting the duo, they quickly addressed the elephant in the room: the state of what we see around us here in Malta.

Yao carefully reflects on Malta's architectural journey and tackles the topic head-on: "In Malta's architectural narrative, we've witnessed a fascinating skip through history, bypassing key periods of evolution post-war. This leap has resulted in a lack of architectural exploration that could have culminated in a recognised contemporary local style. So, currently, it is challenging  to intervene referentially, and this often results in an aesthetic dissonance and felt lack of belonging, which defines our current urban fabric, but it's not game-over; there is room for change."

Peter adds, "At Box Concept Studio, our designs are not just about harmonising aesthetics; they're about weaving together Malta's rich cultural heritage with contemporary innovations, creating a fabric that tells the story of our past, is in conversation with the present, and importantly, also refers to our future aspirations.

A stunning example of the pair's architectural innovation is the Salvo Grima Group's new offices, nested within Marsa's industrial estate.

This remarkable structure echoes the company's industrial heritage and parallels its forward thinking mindset. The steel staircase placed within, connecting the different levels through a central, double height space, at once emphasizes the companies openess and collaboration, while through its sleekly layered form and aesthetic, pays homage to the group's maritime roots.

There's no denying that Peter and Yao have carved a unique niche in the industry with a portfolio encompassing a diverse range of typologies and scales, from bespoke residences to contemporary office spaces, large-scale hotel projects, and urban regeneration initiatives. But what distinguishes them is their unwavering commitment to creating meaningful architecture that captivates the senses and catalyses positive change, enriching lives and inspiring future generations. →

Their work is not just about buildings; it's about studying the broader context, including the project's brand vision and commercial resilience, and creating spaces that propose a sense of community and connection, making their designs relevant and impactful on all levels.

"At the core of our practice lies a deep-rooted belief in the transformative power of architecture," says Peter. "Every project is an opportunity to push the boundaries, challenge conventional thinking, and make a tangible difference to the clients and communities we serve."

Yao elaborates, "Whether it's revitalising neglected spaces, reproposing local heritage, or pioneering sustainable building practices, our work is guided by a singular process: we ask questions; we listen intently to our client's so that we can uncover the true potential of their project; and we aim to 'graft'—we create meaningful spaces that resonate with today's reality and generate belonging, but which are also inherently versatile to respond to the challenges of tomorrow."

Moreover, Peter and Yao's impact extends beyond isolated projects; they are also focused on larger contexts and urban scale developments. Through their master planning initiatives, they have breathed new life into overlooked neighbourhoods, transforming them into vibrant hubs

Creative design is not a strictly logical process; it is the act of weaving together a concept that encapsulates all identified aspects – it's really about building relevance.

— Jing Yao Xu

of activity while re-proposing spatial elements reflecting the area's unique character and heritage.

One of the hallmarks of Peter and Yao's approach is their emphasis on sustainability, which is born from their unique position relative to the principle. Long before it became recognised as a buzzword in the industry, they recognised the need to prioritise resource responsibility in their approach to architectural design. They nonetheless believe its more effective application is not necessarily limited to the recognised 'physical' route of seeking innovative materials and incorporating renewable energy sources but rather greatly amplified by a design approach rooted in a committed study of the non-physical elements of space – one which seeks to maximise the building's value in use and establish a versatile, meaningful contemporary programme in sync with the reality tacitly perceived of the place – this they believe proposes a felt sense of belonging and a long term project resilience which reduces the need for wasteful re-fits and re-development.

"One such project is the AX ODYCY Hotel and Lido," says Yao, "a luxury hotel complex that exemplifies our approach to large-scale design and commitment to sustainability. Following an efficiency study of the preexisting hotel's layout, we resolved to extend it rather than demolish an over thirty year old structure. We aimed to create a recognisably contemporary building that played off the existing geometry and used it as a baseline for subtle and elegant contrasting elements."

"Situated in a prime location in Qawra overlooking the coast," Peter adds, "the ODYCY project was approached as a gesture of urban regeneration. The organic shapes of the lido pool extend the perception of the coast, bringing it up towards the public promenade, which was opened up to the sea and allowed to branch off into pedestrianised walkways entwined with urban nodes. The project, therefore, was understood simultaneously as an internal remodelling of the hotel product as well as an exercise in place-making—it creates a space that offers the potential for a sense of being a part of something. Sustainability, to us, is at once about the ability to recognise the inherent values of a building or place and the ability to enact a programme that allows for the long-term viability of the project's continued success."

Yao agrees, "We understand that architecture is not just about creating beautiful buildings but about creating meaningful experiences that

enhance the quality of life for all who interact with them and that the building must be made adaptive and grow with our changing society."

"What truly sets us apart," muses Peter, "is our holistic approach to commercial design, which goes beyond the mere provision of a product but entails a desire to positively affect the broader social, cultural, and environmental context in which our projects exist. We are driven to propose this position because we understand that it simultaneously maximises the financial return and increases the long-term financial resilience of our client's vision."

This dynamic duo consistently achieves exceptional synchrony far beyond the capabilities of the typical architectural firm. But what's the key to their remarkable success?

Peter explains, "Being 'data-led' in our work is not just a phrase; it's a philosophy. We immerse ourselves in extensive studies, mapping out and delving deep into the various elements relevant to the given context. But equally crucial is our dedication to understanding our clients and identifying their goals and grander ambitions. We specifically identify a stage of meticulous preparation that precedes the design of the physical space, ensuring that every element of our work resonates with authenticity and purpose."

It goes without saying that in addition to their groundbreaking work in practice, Peter and Yao are highly respected university educators,

Good is the enemy of great. Increasingly, we are witnessing clients realise the significant opportunity cost of simply doing the expected. — Peter Brincat

sharing their knowledge and passion for architecture and lateral thinking with the next generation of designers as long-standing visiting lecturers at the university level. Their combined experience and academic prowess bring a unique depth to their teaching, where, in addition to tutoring complex design workshops, they lecture Master's students on architectural theory and the creative design process. Their goal is to consistently push their own boundaries while inspiring students to think critically, innovate boldly, and understand smart architecture as an invaluable tool for pursuing a better, more sustainable future.

As they continue to push the boundaries of placemaking and relevant, sustainable design, Peter Brincat and JingYao Xu stand as shining examples of what's possible when creativity, expertise, and a commitment to positive change converge.

Box Concept Studio won two prestigious Malta Architecture and Spatial Planning (MASP) Awards. They received the Interior Architecture Award for Commercial or Public Buildings for their work on the Salvo Grima Group offices in Marsa. Additionally, they were honoured with the Interior Architecture Award for Hospitality and Tourism Projects for the AX ODYCY Hotel in Qawra, showcasing their innovative design that blends heritage with an enhanced contemporary guest expereince. For more information, visit: www.boxconceptstudio.com.

Brown or green?

Which colour should drive our real estate industry?

The real estate industry stands at a junction in several critical areas of the buying process. Simone Vella Lenicker questions whether the industry's future lies in its green credentials or conventional brown attributes, asking what drives value in today's market.

I visited a rundown property in Hamrun with a colleague a couple of years ago to establish its value for forced sale proceedings through the court. Following the inspection, we sat down for a coffee; our discussion turned to the philosophy of what was being valued. Is it merely the hard and cold value of space based on its size, location and condition, and its potential (or otherwise) for redevelopment into yet another soulless block of flats, or is there more to it?

For many, buying a property is an emotional experience— the realisation of a dream to own a space where they can build a life and create memories. This adds an invisible desirability—an element of perceived value that is difficult to quantify.

The theory of worth in real estate valuations is an interesting one. Whereas 'value' estimates the price at

which a property is likely to transact in an open market, 'worth' considers the specific investor's special interest in the property. So, for example, whereas one can derive average rates for apartments in a particular locality, a specific buyer looking for a residence within walking distance of their place of work or a park may be prepared to pay a premium over the average for the right property. This would represent the 'worth' of the property to that specific buyer.

When considering sustainability, however, how much additional value are buyers attributing to more energy-efficient and resilient properties? The high temperatures we witnessed in Malta last summer served to increase local awareness of the realities of climate change. And yet, whereas significant efforts have been made locally in the waste management and transport sectors, there seems to be less awareness that →

the building and construction sector is by far the largest emitter of greenhouse gases, accounting for a staggering 37% of global emissions.

In a recent study by KPMG locally, respondents were asked to rank the factors that would affect their choice of property. Unsurprisingly, location ranked first, while sustainability only ranked sixth out of seven factors (the seventh being proximity to public transportation, indicating that we persist in our unsustainable dependence on the private car). Yet when asked how much more they would be willing to pay for a more sustainable property, respondents indicated an average of €30,000.

Therefore, sustainability has yet to be a primary driver in the choice of property. However, those who value this aspect are willing to pay more. What real incentive is there for people to want to spend more on lower-consuming properties in a situation where our energy bills continue to receive heavy government subsidies?

quality? While reducing energy bills is obviously a benefit, should we not also look at the quality of the space provided? Unfortunately, we are witnessing units placed on the market that are increasingly smaller, inflexible, and awkwardly laid out in an attempt to cater to buyer affordability.

An estimated 40 million Europeans could not afford to heat their homes adequately in 2022. Locally, according to the National Statistics Office, 16.7% of people are at risk of poverty—in real terms, this means that over 85,000 of our citizens live in households with an income that is lower than 60% of the national average median wage. These people cannot afford property and struggle to pay their energy bills and find affordable rental options.

The situation appears to be slightly different regarding commercial properties. Employers are taking such considerations more seriously and seeking to provide higher-quality working environments for their staff. Savings in energy consumption in more significant

Despite growing awareness, sustainability is yet to become a primary driver in property choices.

This phenomenon then raises the question of whether such properties are actually available on the market. Banks increasingly emphasise their preference for investment in properties that manifest certain energy consumption reduction features. They do this through various evolving financing products that promote such measures. On the other hand, real estate agents still fail to indicate the energy performance rating of the property they are marketing before the promise of sale is signed, an obligation in force since 2007.

It is worth noting, too, that the focus seems to be more centred around reducing the "operational" carbon emissions of buildings, while solutions that reduce energy demand or that mitigate "embodied" carbon emissions originating from the design, production, and deployment of materials such as cement, steel, and aluminium are generally few and far between.

The consideration of quality also comes into play here. How does one strike a balance between affordability and

developments are a more critical consideration than in smaller dwelling units, and this is driving a slow change in the demand for more green features and better-quality in this sector of the market.

In Europe, where more stringent regulations have been implemented, environmental, social, and governance (ESG) considerations have become more significant in property valuation practice to account for evolving user expectations and the need for effective risk management. Growing awareness among stakeholders is, therefore, driving demand for environmentally friendly properties, which can potentially lead to higher market values.

The EU has identified retrofitting existing buildings as a strong priority in the European Green Deal. Locally, we have a strong track record of retrofitting and refurbishing older buildings from the 1950s and earlier. We also have a significant building stock that is less than 60 years old; much of it was built in a shoddy manner and has suffered from a lack of maintenance over the years. Have

these buildings reached the end of their serviceable lifespan? Can they be renovated, or are they no longer fit for purpose from a structural perspective? When designing new buildings today, do we consider what will become of them in 50 years? Will they need to be demolished, or can they be considered suitable candidates for a retrofit program?

The discussion is indeed a complex one, and there are no quick-fix solutions. Although the government has a legal and moral obligation to ensure that our building stock meets at least the minimum criteria established by law, it appears to have surrendered its role by failing to put into place adequate regulations and processes that would enable the market to finally leap into the 21st century (a quarter late, but better late than never!). That leaves two main players who can determine the future of our real estate market, namely developers and buyers (or tenants). A handful of developers have taken a positive approach towards the

because the government has stated in black and white that this is its vision for our collective future.

The concept of a 'green premium', with buyers willing to pay more for a better quality property, is relatively new in Malta. However, in mainland Europe, this concept is already outdated. Investors and tenants expect to pay less for buildings that perform below established green standards as the real estate market moves towards more sustainable building practices. Instead of a green premium, the discussion has shifted to the concept of a 'brown discount', a sort of penalty burdening buildings that perform below standard. Instead of lagging behind our European counterparts, we should seriously consider leveragin this concept to promote better quality in the built environment.

As property valuers, we also have an essential role to play. Regulations are set to become more stringent when the revamped Document F comes into force in July, and studies carried out by the government indicate

As long as buyers and tenants do not demand better quality as opposed to lower prices, there seems to be little hope for a change in this sector.

production of buildings, including energy consumption reduction measures. Still, most remain focused on reducing costs and increasing profit margins. As long as buyers and tenants do not demand better quality as opposed to lower prices, there seems to be little hope for a change in this sector.

Malta's Sustainable Development Vision for 2050, which was launched for public consultation in 2018, highlights "Sustainable buildings and urban development" as one of its key priorities, with one of its pillars being that "the industry will lead the world in low-carbon, carbon-neutral or carbon-positive, green, resilient and affordable construction solutions." Indeed, a tall order! But sadly, one that we have barely begun to skim over. Malta's strategy to implement the key priorities of its vision document is still in draft format. There is a dire need for more awareness among buyers that they actually have a right to demand better quality buildings, not simply because they deserve to, but also

that construction costs are expected to increase by 10–12%. However, buyers' purchasing power will not change at par, so consequently, the cost of land may start to diminish, and retrofitting solutions may take on a higher appeal. And as more sustainable buildings come on the market (assuming the regulations will be enforced), then lower quality assets are likely to reduce in value.

The only alternative to a sustainable real estate market is to continue to produce mediocrity and underperforming buildings. If this is what the market is asking for, then the whole of society stands to lose. If, on the other hand, we collectively dream of a more sustainable future, then demand must change and drive a transition where the worth, or value creation, of sustainability begins to play an essential role in the property's value.

Simone is the design director at AP Valletta and leads its planning and property valuations team.

UNLOCKING THE KEYS TO COMBAT MONEY LAUNDERING

A call to notaries and real estate agents!

In the intricate web of financial crime, one term reigns supreme: Money

Laundering (ML). As the key players in the real estate sector, awareness of this damaging practice is not just advisable; it is imperative.

Understanding money laundering: Unveiling the three stages

At its core, money laundering is the process of concealing the origins of illegally obtained financial assets. The journey of converting illicit funds through the laundering process is typically segmented into three distinct stages: placement, layering, and integration.

Placement: Here, the illicitly acquired assets are introduced into the financial system. This can happen through various means, such as by depositing small amounts of cash at frequent intervals in bank accounts.

Layering: In this stage, tainted funds are moved through a series of complex financial transactions to obscure their origin and ownership. This may involve multiple transfers between bank accounts, shell companies, or even across borders.

Integration: The final stage involves reintroducing the laundered funds into the

Adapted from https://www.unodc.org/unodc/en/money-laundering/landrycycle.html

legitimate economy, making them appear as though they were obtained through legitimate means. This can be achieved through purchasing investments, real estate, or other high-value assets.

The multi-sectoral facets of money laundering

Money laundering isn't limited to a single sector; it permeates through various industries, leaving no stone unturned in its search to legitimise illegally gained assets. Sectors like finance, hospitality, trade, and real estate can serve as channels for integrating dirty money into the economy.

The real estate sector: Potentially a haven for money launderers

Among these sectors, real estate stands out as one of the destinations for laundered funds.

Consider this: a luxury property purchase enables the transfer of significant funds in a single and large transaction and can, therefore, easily mask the true source of funds, providing a cloak of legitimacy to dirty money. This is even more so if the buyer purchases the property through complex structures. As a real estate agent or a notary, you play a pivotal role in safeguarding the integrity of these transactions.

The gatekeepers of financial integrity: Critical players in combatting money laundering

Enter the Anti-Money Laundering Directive (AMLD), a regulatory framework aimed at fortifying the defences against financial crime. Under this directive, a core group of gatekeepers has been entrusted with stemming the tide of illicit funds into the economy.

Banks: The vanguard of financial security, banks are at the forefront of the fight against money laundering. Through rigorous Customer Due Diligence (CDD) measures, they scrutinise transactions, flag suspicious activities, and ensure the transparency of financial flows.

Notaries: Charged with overseeing the legality and authenticity of real estate transactions, notaries serve as guardians of legal certainty and security. Their role extends beyond

mere documentation; they are tasked with verifying the identities of parties involved in a transaction, scrutinising the legitimacy of funds, and ensuring compliance with regulatory requirements.

Real Estate Agents: As the channel between buyers and sellers, real estate agents occupy an essential role in the AML ecosystem. While their responsibilities may not be as extensive as those of banks, they are nevertheless instrumental in detecting and deterring illicit activities within the real estate sector. By conducting due diligence on clients, including, where necessary, verifying the source of funds, they serve as crucial barriers against money laundering through the real estate sector.

The importance of customer due diligence (CDD) documents

At the heart of these gatekeepers' responsibilities lies the application of Customer Due Diligence (CDD) measures. CDD measures include collecting and verifying essential information about their clients, including their customers' identity and source of funds. The verification process is done by obtaining supporting documentation, such as copies of identity cards, passports, and other documents that funds used to process a transaction have been obtained legally. Through the application of CDD measures, these actors create a barrier against the infiltration of illicit funds into the financial system.

For banks, CDD forms the cornerstone of their

risk-based approach to combating money laundering. By assessing the risk profile of clients and transactions, they can tailor their due diligence efforts to focus on high-risk areas, thus enhancing the effectiveness of their anti-money laundering measures.

Similarly, notaries and real estate agents rely on CDD documents to verify the identities of parties involved in transactions, assess and verify the legitimacy of funds, and detect any signs of suspicious activity. By adhering to robust CDD procedures, they can mitigate the risk of unwittingly facilitating money laundering schemes and uphold the integrity of the real estate market.

Conclusion: A call to vigilance!

Every sector plays a crucial role in the battle against money laundering. Notaries and real estate agents are no exception. Armed with knowledge, vigilance, and a commitment to integrity, they can serve as strong defenders of financial transparency and protect the real estate field from being misused for money laundering purposes.

By understanding the intricacies of money laundering, recognising the natural vulnerabilities and risks in real estate transactions, and adhering to rigorous due diligence standards, they can help build a financial system that is resilient to the insidious threats of financial crime.

For any queries call (+356) 2123 1333 or email queries@fiaumalta.org.

THE ILLUSION OF PRESERVATION

Government's Superficial Planning Reforms for Gozo

Buildings in Xlendi have been rising higher, becoming denser and denser

Victor Paul Borg delves into the government's recent planning brief to preserve Gozo's character by mandating the use of globigerina limestone for new buildings. Announced on 14 February, this measure mirrors a 2015 policy, raising questions about the effectiveness and sincerity of these so-called reforms.

Let me tell you a little fact about one of the government's vaunted planning reform measures. On 14 February, the government published a planning brief introducing a measure supposedly to preserve Gozo's character. One of its main elements is that new buildings at the edge of certain development zones have to have exteriors clad with globigerina limestone. The same circular, "Designing for Gozo's Distinctiveness," also requires facades in Gozo to be clad with globigerina limestone.

And what little fact do I wish to highlight? When it comes to the new measure requiring exteriors at the edge of the development zone to be of limestone, and hence, in keeping with

traditional characteristics, a policy expressing the same principle has existed since 2015. I am talking of policy P42 of the document known as DC15, which states that the back and side exteriors of buildings at the edge of development zones have to be "well designed to harmonise with the traditional architectural characteristics of the context and to improve areas of low quality."

The circular of 14 February now makes a similar point about Gozo, but policy P42 goes further because it has a national remit—it applies to Gozo and Malta.

Last February's circular supposedly furthers the government's vision to make

Gozo distinct—an island of villages, as the propaganda goes—but the question posits itself: Will transforming Gozo into fivestorey blocks of flats, even if such flats have facades clad with globigerina limestone (and backside if facing ODZ), make Gozo distinct? Will painting blank walls the same colour as limestone make such blank walls less unsightly?

Yet this is the kind of superficial reform the government has initiated. Turning Gozitan streets of townhouses into five-storey flats is fine as long as the facades and sides facing ODZ are of globigerina limestone and any blank walls are painted beige or a similar colour. What about parking issues? What about quality

Gozo has been the most badly affected in the past nine years as blocks of flats are now dominating swathes of the sister island's villages

of life or architecture that fosters a sense of community?

And then it gets worse: the government is also implementing another policy reform designed to undermine the court and the context-driven approach to planning introduced in 2015. In 2015, the government published two seminal policy documents: a document called SPED that provided a strategic planning vision and a document called DC15 that created a policy framework for a context-driven approach to development. Yet DC15 also had an add-on: a policy that changed height limitations from floors to metres, and this led to higher height limitations across the board as well as a more significant number of floors, making the urban fabric denser with greater stacking of floors (the so-called flats that are often derided as chicken coops).  The result became buildings that began to rise starkly and unsightly over

introduced after a comprehensive planning review enshrined in SPED, the strategic document introduced in 2015.

A coalition of NGOs – Din L-Art Helwa, Ghawdix, and Wirt Ghawdex – are challenging the height limitation policy in court, and there is a chance that the court may declare it invalid. Yet the government now wants to turn the temporary height limitations in 2015 into permanent policies. This is to tackle the problem that has now struck developers— some large developers have seen the court revoke several of their development permits after blocks of flats had already been built and sold.

A block of 27 flats and two maisonettes belonging to Francesca Grima, one of Gozo's top developers, are among the developments whose permit the court has revoked. The

Will transforming Gozo into five-storey blocks of flats, even if such flats have facades clad with globigerina limestone, make Gozo distinct?

streets of low buildings, creating unsightly blank walls and so-called 'pencil development' that disrupted the harmony of the urban areas and disfigured streetscapes and townscapes. These developments have also made neighbourhoods more congested and stressful.

In recent years, the court has begun to revoke permits for such buildings based on two lines of reasoning. First, building up to the height limitation is not a right or the only measure, and other context-adherence policies also have to be considered when assessing such buildings. Second, the number of floors in the Local Plan takes precedence over the stacking of floors implied in DC15 due to the hierarchy of planning documents set in law.

The height limitation policy in DC15 was not even intended to be permanent. It was introduced as a temporary policy that would stay in force until more nuanced policies were

completed block of flats, whose permit the court revoked in November, is one of three blocks of flats (the other two belong to Joseph

Portelli and his partners), transforming a few fields into an overabundance of 115 flats. Construction on Grima's flats has been completed (and now the permit has been revoked); in the case of the other two, belonging to Portelli, one is under construction, and the other is excavating the ground for underground parking.

In essence, the government intends to tackle any legal leverage that people and NGOs employ to appeal against unsightly developments ruining townscapes and streetscapes.

So, rather than reforming the planning system to make it more suitable to different locales and to protect communities and streetscapes, the government is intent on simply trying to formalise measures that it had introduced as temporary and which have disfigured large swatches of Malta's townscapes, marred harmonious streetscapes, and led to densely stacked flats that increasingly make urban living suffocating or oppressive.

Within this context, does it matter that the government now also requires the facades of such flats in Gozo to be clad in globigerina limestone? Limestone is undoubtedly more appealing than rendered bricks, but planning is not only about facades—planning is about fostering quality of life.

Instead of a comprehensive planning review, we are now simply seeing tinkering and fake reform that will be more or less the same.

The Court revoked planning permit for this block of flats on basis of wrong application of policies on height

Sustainability at a Crossroads

How legislation is set to shape malta's real estate future

As property continues to be a primary investment vehicle, appreciating due to limited space and strategic location, the sector also grapples with significant environmental and social consequences. Ing. Therese Galea analyses the dual impact of Malta's real estate boom, examining how the drive for economic growth intersects with the imperative for environmental sustainability, particularly in light of recent EU directives and Malta's evolving policy landscape.

As a densely populated island state with limited natural resources, Malta's real estate is like a double-edged sword. It is inevitably a key investment vehicle that appreciates in value with time, given the restricted space and the island's location, while simultaneously creating long-term environmental and social impacts. Moreover, the country's rapid economic and demographic growth in recent years has exacerbated this construction boom and its associated environmental footprint, such as increased energy consumption, construction, and demolition waste, leading to increased calls for solutions to address these impacts.

The European Commission estimates that buildings in the EU are responsible for around 40% of the total energy consumed.  While Malta boasts one of the lowest energy consumption per dwelling in the EU, this does not necessarily reflect the energy efficiency of Maltese buildings, which still have considerable room for improvement in terms of performance. Unlike many other EU member states, the island's temperate climate and the limited need for heating in winter play a significant role in this low consumption figure. Thus, Malta's real estate and construction sectors still have a role to play in the country's sustainability and decarbonisation efforts.

The European Union's policy landscape is evolving rapidly, triggered mainly by the European Green Deal's aim of the EU becoming climate neutral by 2050 and later by the 'Fit for 55' package of legislation. Legislations such as the Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive (EED) are central to improvements in building efficiency. These were revised in 2018 and further re-opened for discussion in 2021, intending to increase their ambition.

Like other EU member states, Malta must contribute to the EU's collective target of reducing final energy consumption by at least 11.7%.

Specific annual energy savings obligations are also in place to support energy-poor households. The provisional agreement for the EPBD sets a zero-emission standard for new residential and non-residential buildings. All new constructions are to be free of on-site fossil fuel emissions by 2030, with an earlier deadline of 2028 for publicly owned buildings. This move will necessitate that new buildings are designed to be solar-ready, ensuring they can support rooftop solar installations. This aligns with the increased ambition within the Renewable Energy Directive (RED), which was revised and currently sets an EU-level target of at least 42.5% renewable energy share by 2030.

Additionally, the introduction of a new self-standing Emissions Trading System (dubbed ETS 2), operational from 2027, extends carbon pricing to fuels consumed in sectors not covered by the existing ETS, and that includes buildings. Maltese fuel suppliers must purchase and surrender allowances for their emissions, effectively introducing a carbon pricing mechanism for most fossil fuels consumed in Malta. To mitigate the social and distributional impacts of ETS 2, particularly the rising energy costs for vulnerable groups, the new Social Climate Fund regulation requires Member States to develop a Social Climate Plan outlining measures and investments to support vulnerable households and micro-enterprises.

Malta's actions in response to these latest directives are yet to be defined; most of these revised directives are either still being transposed or, as is the case with the EPBD, still being adopted by the European Council and the European Parliament. The current EPBD, however, already sets forth key requirements for improving the energy performance of buildings, including establishing minimum energy performance standards, introducing energy performance certificates, and regularly inspecting heating and air conditioning systems. The

guide sets minimum requirements for most building types for on-site renewable energy generation and a share of the annual domestic hot water demand to be provided by heat pumps and solar water heaters.

The impact of these changes on local building practices, including monitoring and control functions, can be substantial. In this case, developers will now have to consider energy performance from the earliest stages of design and throughout the construction process while ensuring they can convince buyers or prospective homeowners to appreciate the benefits of such improvements.

Developers will eventually have no option but to apply sustainable building practices as the norm. Although still in the early stages, green loans and mortgages are emerging, offering more favourable terms for renewable energy, energy-efficient and sustainable property developments and investments at both the developer and end-user stages.

Malta's real estate is not just an investment; it's a sustainability challenge with long-term consequences for the island.

These financial products represent a growing alignment with EU-wide efforts to foster sustainable finance. These green financing options not only make sustainable investments more accessible but also signal an increasing commitment to a greener real estate market. As these financial instruments evolve, they are expected to significantly support Malta's transition to decarbonising buildings. Through EU funds, the government also issues retrofitting grants and initiatives from time to time. One such retrofitting scheme was issued on May 1, 2024.

directive also encourages renovating existing buildings to meet higher energy efficiency standards.

The tangible impacts of these Directives on local building regulations and construction practices in Malta are significant. For instance, they will necessitate the revision of existing codes to align with higher energy efficiency standards, adopting innovative construction methods, and integrating smart building technologies. These changes are both regulatory and cultural, as they require a shift in mindset from all stakeholders involved in the real estate sector. Moreover, there could be other impacts, such as lending practices, property valuations, and the financial feasibility of projects.

Malta has taken some steps in its endeavour to implement these directives. A prime example is the revised Technical Guide F, split into three parts: dwellings, non-dwellings and technical building systems, which comes into force on July 1, 2024. Technical Guide F establishes minimum energy performance requirements for new and renovated dwellings and non-dwellings. The minimum requirements relate to the overall energy performance of such buildings and to the performance of building elements that are retrofitted or replaced. The revised

Malta can serve as a model for other Mediterranean countries and islands with similar climatic conditions. However, the future of sustainability in Malta's real estate sector hinges on effective local enforcement, government commitment and the willingness of developers to adapt. While potential economic and environmental benefits exist, their realisation is contingent upon these critical factors aligning to facilitate the necessary changes. Sustainable building practices not only contribute to the fight against climate change but also contribute towards the preservation of natural resources, which in turn ensures the resilience of Malta's unique environment. Such practices also reduce operational costs, increase property values, and enhance occupant comfort and health. This shift can stimulate the local economy in the medium-to-long term by creating new jobs in green construction and related industries.

However, the sector must also be prepared to address climate risks, such as rising sea levels and extreme weather events, which can directly impact real estate. Sustainable construction practices can mitigate these risks by incorporating adaptive and resilient design features.

In conclusion, construction and real estate have the potential to significantly reduce the country's carbon footprint by adopting green building practices. The challenge lies in balancing economic growth with environmental responsibility. Introducing new regulations, adopting innovative technologies, and promoting sustainable practices are all steps in the right direction, signalling what lies ahead for Maltese real estate.

Therese is an engineer and manager with EY's sustainability team.

CELEBRATING SEVEN DECADES OF EXCELLENCE

An interview with Halmann Vella Group CEO Kevin Rapinett

This year marks a monumental milestone for Halmann Vella as the company celebrates its 70th anniversary. Since its humble beginnings in 1954, Halmann Vella has become a leading provider of natural stone products and a catalyst in the industry. MONEY sat down with CEO Kevin Rapinett to reflect on the company's remarkable journey and discuss its future vision.

Since its inception, Halmann Vella has experienced numerous pivotal moments that have shaped its trajectory. Kevin highlights the company's early days, stating, "Our journey began in 1954 with the manufacture of terrazzo tiles, which laid the foundation for our future success." Today, the company stands tall with over 200 employees, operates from two expansive manufacturing facilities equipped with state-of-the-art technology, and proudly presents an extensive range of natural stone products.

Kevin reflects on this evolution: "Our transformation from a purely familyrun enterprise to a harmonious fusion of professional management and family values is a testament to adaptability and growth." Halmann Vella has embraced a culture of transparency and accountability, with its bonds listed on the Malta Stock Exchange since 2014. A diligent board of directors

ensures robust governance that fosters stakeholder trust and investor confidence.

Over the years, Halmann Vella has broadened its horizons, venturing into property development and building a robust portfolio of strategic investment properties. This strong asset base is a testament to their strategic expansion and diversification efforts.

Key projects have played a significant role in defining the company's legacy. Kevin elaborates, "Landmark projects such as the Parliament building, Valletta City Gate, Citadel, and The Farsons Brewery are testaments to our commitment to quality and innovation." These projects showcased the company's capabilities and established its standing in the industry.

In 2023, Halmann Vella invested significantly in cutting-edge manufacturing facilities,

reinforcing its commitment to innovation and sustainability. This move marks another transformative chapter in the company's history, ensuring it remains at the forefront of the industry.

Sustainability is a core tenet of Halmann Vella's philosophy. Kevin is enthusiastic about the company's upcoming initiatives: "We are excited about several ventures that underscore our commitment to environmental stewardship." These initiatives include developing eco-friendly building materials that use recycled content and reduce carbon footprints.

The construction and real estate sectors are dynamic, with sustainability increasingly at the forefront. Halmann Vella's strategy to stay ahead of these trends involves a proactive approach to innovation and a deep understanding of industry dynamics. "We embrace technological advancements and

prioritize investment in R&D to ensure we remain at the forefront of our field, ensuring that our clients can achieve their sustainability goals by producing products that support green building initiatives," Kevin states.

Close collaboration with leading architects and designers enables the creation of innovative, sustainable solutions that meet and exceed market demands. "Our diverse professional team continuously pushes the boundaries of design and functionality, responding to shifting trends and customer needs. Our

collaborations are built on trust and mutual respect," Kevin explains.

Recent partnerships include AX ODYCY Hotel in Qawra, which earned the Interior Architecture Award for Hospitality and Tourism Projects; the San Anton Palace Entrance and Memorial in Attard, which won the Small Project Award; The Farsons Brewhouse in Mrieħel, which received the Rehabilitation and Conservation Award; Trident Park, which received a special commendation for commercial and public domain rejuvenation; and the Jesuit Church Oratories in Valletta, which were commended for conservation. These collaborations highlight Halmann Vella's role in preserving Malta's heritage and pushing the envelope in modern construction.

As Halmann Vella commemorates its 70th anniversary, the company's evolution from a small family enterprise to a leading industry player is a testament to its enduring commitment to excellence. Looking ahead, Halmann Vella's strategic priorities focus on advancing sustainability, broadening their product range, and fortifying market leadership. "We envision a future where we play a pivotal role in shaping the construction industry, setting new benchmarks for quality, sustainability, and innovation, all while upholding our heritage and reputation for excellence," says Kevin Rapinett. With a clear vision for the future, Halmann Vella is poised to continue setting new standards and leading the way in the industry, remaining a beacon of progress and responsibility.

Fighting the Ecomafia

In the shadows of seemingly legitimate business dealings and construction sites, a new form of organised crime festers, thriving on exploiting the very essence of life: our environment. Dubbed the 'ecomafia', this term encapsulates a myriad of illegal activities that not only pillage natural resources but also corrupt the societal structures meant to protect them. From unlawful waste dumping to unpermitted urban developments, the ecomafia represents a dire threat to ecological balance and community welfare. Manuel Delia delves into the sinister operations of these environmental bandits and the emerging legal battles aimed at curbing their destructive ambitions.

You speak the word 'mafia', and it conjures up the quasi-glamorous images of American cinema. Frozen in the rackets of the 20th century, the iconography of those films of casinos and bootleg alcohol or even heaps of cocaine on grotesque captain-of-industry desks misses a significant chunk of today's racketeering. It is the exploitation, the trafficking, and eventually, the ruination of the most precious resource and, therefore, the highest-priced commodity that we have: the environment we live in.

The term 'ecomafia' was coined some three decades ago by the Italian environmental NGO Legambiente. It describes several activities, some of which we might recognise in our neighbourhood. Illegal construction is one criminal activity not merely because it is a crime against good taste but because it relates to the parallel crimes of money laundering, itself, an ancillary activity to the predicate crimes, the proceeds from which it is laundering. It is the concretisation (quite literally) of the trafficking of drugs, people, and

contraband that enables the perpetrators to enjoy their ill-gotten wealth.

Ecomafias also exploit our habits, particularly our wilful generation of vast volumes of waste taken from our front doors. They spare us the smells and inconveniences of our lifestyles and traffick those wastes to dump them on poorer communities. Unlike illegal construction, which happens in our faces, it is harder to get people interested in waste trafficking, mainly if it relies on old colonial routes dumping our first-world problems on Africa and Asia.

Consider the predatory exploitation of rare resources or behaviour that causes consequential damage to them: the unlawful extraction of water, for example, or its spoiling through illegal practices.

Illegal construction, waste dumping, and resource exploitation have long been perceived as activities worthy of punishment or sanction. However, they are rarely recognised as part of a broader mafia activity

because, as with many other aspects of law enforcement, we mistake the mafia for an ordinary business whose unsavoury attitudes and aggressive approaches to the market are no worse than ordinary capitalism and initiative.

That is how they get away with it.

Consider the collective frustration of yet another environmental disaster perpetrated by what we endearingly call "a cowboy developer" acting without proper permits. They are made to pay a fine in exchange for regularising their unlawful act. Consider that against payment, what used to be illegal has now been blessed into legality by the state.

The fine is calculated as a factor of the offence itself: one offensively unlawful building, one fine which is proportionate to the value of that building. That building is worth much more to the "cowboy developer" than what they might sell it for. It is an enabling tool for far more significant economic activity. →

It is where cash coming in from, say, drug trafficking can be shown to have been spent making something. Then, the items can be resold, and the income from that can be neatly deposited into bank accounts. The process of "regularising" an illegal building by the authorities is an act of money laundering. The fine the "cowboy" is made to pay is a fee for the typically extremely expensive service of laundering proceeds of crime. It's a business cost for an organised crime syndicate.

The authorities assuage their consciences by walking away with the collection of a fine. They have not allowed an illegal environmental act to go unpunished. They've ticked their Box. In the meantime, "cowboys" can go right ahead and encroach some more on whatever nature is left and cast some more people in the shadow of their monstrosities. The obvious

victims here are people whose health has been degraded some more on the altar of other people's greed.

With the new European directive, there is hope that the fight against the ecomafia will adopt tactics once reserved for combating traditional organised crime.

Deprived of nature, space, silence, clean air, sunlight, and a restful landscape, people are robbed of the physical and mental health they were born with a right to. Perhaps less obviously because of its often-inanimate silence, the environment is also a victim. If we consider that we are collectively responsible for it, we must speak on its behalf and stand to protect it from the intrusion of mafiosi as we would talk for extorted owners of high street shops.

There's some growing appreciation of the need to address these issues at the European level. Last March, the European Council signed off on a new European directive updating definitions of ecological crimes and directing member states to increase penalties for these crimes. New offences include illegal recycling of polluting components of ships, mishandling chemicals, or trafficking timber.

It's important to remember that we are not here talking of corporate fines or sanctions ostensibly imposed to punish unlawful activity but effectively incorporated as a business cost like yet another tax. This is about identifying individual culpability and rewarding it with stiff prison sentences.

The new directive recognises that mafias will avoid coercion by violence if they can. Coercion by less bloody means is more economically practical. The most obvious and relatively inexpensive method is corruption, which involves bribing politicians and officials and infiltrating state organs to secure permits or certificates of provenance that enable the criminal activity they want to undertake.

While it is clear that an activity not covered by a required permit issued by a state organ is unlawful, that does not mean that an activity covered by a required permit is, in and of itself, lawful. Permits granted within the context of a mafioso relationship between the private interest and the state or officials within it are a fig leaf that any decent law enforcement must see through.

The new directive explicitly clarifies that a permit is no key to immunity from committing environmental crimes. There's no such thing as a license to kill. There's no such thing as a permit for ecocide.

Another way the directive's authors show a new appreciation of the mafia nature of

The ecomafia does not just steal land or resources; they steal the future, leaving behind a legacy of environmental debt that generations must pay.

these activities is that some of the solutions for combating them come straight from the manual on fighting organised crime. The directive recruits civil society as a partner in this fight.

Too often, victims of the mafia – not the ones whose relatives have been shot or bombed – but the many others who are forced to live in communities whose economies and social cohesion are undermined and robbed by the mafia do not recognise themselves as victims. This is especially the case with environmental crimes. Too often, people accept pollution, noise, and the wounds of towers of concrete sprouting from the countryside as the given and underlying circumstances of their existence. And the environment itself does not hire lawyers.

The new directive directs member states to

remove barriers to environmental NGOs joining criminal proceedings against environmental criminals parte civile as if the NGOs themselves were the direct victims of the crimes under review.

The directive does not yet have the force of law. It is brand new, which means our own authorities have two years to turn it into national Maltese law. And that's not an automatic process, nor does it come with any guarantee of success. Our authorities have a habit of conducting these exercises of transposing laws behind closed doors and inserting in the law somewhere some way of making them practically ineffective. And then there's the matter of enforcing them. Good luck with that.

Because a mafia state is also an ecomafia state, only we can change that.

Storytelling without borders

Everhouse's vision for global dominion

Jon Calleja and Ken Chircop, the creative minds behind Everhouse, share their insights on venturing into new markets, finding the perfect blend of creativity and commercial appeal, and leveraging technology to enhance their storytelling. Committed to delivering exceptional interiors and cultural narratives, Everhouse aims to inspire and enlighten a global audience.

As Everhouse expands into new markets, how do you plan to tailor your content strategy to maintain relevance and engagement in diverse cultural contexts, especially considering your emphasis on extraordinary interiors and the culture surrounding them?

YouTube has been a great tool for distributing our content, but it has also helped us focus and decide on what type to produce.

Central to our content philosophy lies a deeply rooted belief: the

importance of storytelling. Since we've been doing this for a couple of years, we could also see what works and what doesn't and pivot accordingly. We knew we could shoot great-looking footage of a beautiful house, but we wanted to go beyond that. We've learned we want to tell the story of the person behind the space as much as we want to see beautiful spaces, and we believe our audience wants that, too. Our theory is that if you're a creative person, chances are you've surrounded yourself with beautiful things, which generally means you have a great space. So, we have focused on the homeowner's narrative

and their home, and we have let them go through their design decisions and tell us about themselves on camera. Through these conversations, we see the spaces through the eyes of those who created them.

Homes and interiors are a tough segment, so we are carving a niche of our own and positioning ourselves as a go-to brand for anything design-related. Our core audience is based in the USA and UK, and we focus on distinguishing ourselves as a key player in the home design and architecture content space. To achieve this, we are also expanding into

content beyond video and social media and focusing on our website, where we see countless opportunities to provide more varied content for our growing online community.

We're lucky enough that this market is loved all over the world, and good design can be found anywhere.

Future Content Series: You mentioned plans to introduce new series, like the insider episodes, to the world's most beloved stays. What →

drives the selection of these new themes, and how do you ensure they align with Everhouse's mission to inspire and educate about design and architecture?

We started Everhouse with a series called 'People of Interest,' where we met creatives, entrepreneurs, and interesting people in their houses.

However, we plan on growing and starting a new series to expand and serve various content. We have, in fact, just recently launched 'Places of Interest', a new series in which we look at top hotels from around the world and focus on what makes them different.

The choice of visuals, the tone of voice, and the introduction of a guest make it a signature Everhouse episode. We look at detail-oriented spots where the design choices and interiors are exciting and original and display an eclectic taste.

Our first episode features the Parker Palm Springs in California. This high-end luxury hotel is part of the Leading Hotels in the World®. The interiors are eclectic, and the setting, like an oasis in the desert, gives the Parker an extraordinary vibe. With this series, we hope to carve our own niche in the travel space.

Balancing creativity and commerce: How do you balance Everhouse's creative aspirations with the commercial realities of running a media and e-commerce platform?

Our main goal is to build a global brand in the home and entertainment industries while always focusing on quality content. We are building a real community, which helps us leverage our content and actively engage with our audience to understand their preferences and feedback.

We knew we could shoot great-looking footage of a beautiful house, but we wanted to go beyond that. Our focus is on the story of the person behind the space.

By doing this, we ensure that commercial efforts do not detract from the user experience. We collaborate with brands that align with Everhouse's values and our audience's interests, ensuring that any commercial content feels relevant and valuable to the audience.

Impact of Technology on Future Plans: As technology continues to evolve rapidly, in what ways do you foresee incorporating emerging technologies to enhance Everhouse's storytelling capabilities or viewer interaction?

We are a small setup and want to keep it that way. We leverage technology to spend as much time as possible focusing on what matters most, which, in our case, is telling stories. Technology facilitates this more than ever. It has made collaborating so easy, accessible and efficient.

We usually work remotely, but these advantages also spill into other areas. All pre-production meetings, especially before our travels, are carried out online. When we partner up with other production companies, we use apps that let us plan and collaborate better. Managing these shoots can get hairy; this way, we can be more efficient on location and, in turn, tell our stories better, which, in the end, is all that matters.

We use AI tools to facilitate research and idea generation. When used appropriately, these tools help speed up mundane processes and give us a fresh perspective. We welcome AI not out of laziness but to be more productive and efficient.

One aspect of technology that we take for granted today is social media. It enables us to create, share, and interact with our community. In the past, we have made many decisions based on what our audience shares with us, both through comments and polls and by adequately interpreting the analytics these platforms provide.

Long-term vision for Everhouse: Looking beyond the next five years, what is your long-term vision for Everhouse's impact on the design and architecture world? How do you plan to sustain growth and innovation in the long run?

Our dream is to be the go-to platform for anything home- and designoriented. The brand started on Instagram, and we moved to YouTube

to distribute our video content. We are looking to add more streaming platforms, especially established ones, as we can see that our current episodes and others in the future are easily adaptable.

While we are still firmly in the entertainment industry, we've started working on e-commerce. Our goal is to become a global brand with a whole ecosystem of our own.

We both come from a design-oriented background, so we value the language of art and design and appreciate artists and designers who push boundaries, innovate, and bring fresh perspectives to their work. We plan on continuing our collaborations with like-minded people and brands, as we did last year with our first homewareoriented products.

Since we have started our new series, 'Places of Interest,' featuring leading hotels and vacation stays worldwide, Everhouse can venture a little deeper into the travel world and produce travel guides and other publications based on our other series.

We also look forward to trying out some untried approaches to funding new projects, such as crowdfunding. We love the idea that our audience can be directly involved in the inception of new products, both through funding and ideation.

Evolution of Creative Processes: With your backgrounds in design and storytelling, how have your roles influenced the evolution of Everhouse's series like 'People of Interest'? Can you share how you integrate these creative insights into developing fresh content?

When we started Everhouse, we aimed to spotlight interesting individuals and their spaces and tell their stories entertainingly, which has become our signature style.

Being both in the creative field, as a brand designer and a filmmaker, we understand the importance of creating a solid brand and a set of values to keep things consistent. We are continuously looking for ways to enhance our storytelling experience. 'People of Interest' was initially a more straightforward interview series. However, it now features cinematic visuals and a more laid-back, relatable and personal narrative, which is now the recipe for an Everhouse episode. This is what makes us Everhouse.

65 years of harmony

Natuzzi Italia unveils Anniversary Collection at Milan Design Week 2024

Natuzzi Italia celebrated its 65th anniversary during Milan Design Week 2024 with events and projects honouring its journey towards harmony. The flagship store in Via Durini, Milan, transformed into a concept of "quiet luxury," with The Circle of Harmony—65th Anniversary Collection as its centrepiece.

This collection, featuring designs by Karim Rashid, Andrea Steidl, and Simone Bonanni, narrates Natuzzi's evolution through the past, present, and future. It introduces three new sofas: Memoria by Karim Rashid, Mirai by Andrea Steidl, and Momento by Simone Bonanno. Memoria, with its modular design, reinterprets Mediterranean hospitality, offering versatility and comfort.

Mirai draws inspiration from Apulian architecture, embodying boldness and warmth through its structure and optical illusion-like lines.

Simone Bonanni's Momento sofa emphasises relaxation and visual comfort, drawing inspiration from Apulian dry stone walls. Its compositional versatility suits various spaces and design preferences.

The Natuzzi Design Centre also presents Mindful and Snail sofas in the Comfortness collection, redefining relaxation with innovative mechanisms and modular designs.

Natuzzi Italia's 65th Anniversary collection encapsulates the brand's essence of harmony, comfort, design, and the intersection of tradition and innovation.

Experience harmony and comfort firsthand at our Natuzzi Italia store in Msida, or explore our collection online at natuzzi.com/mt/en/ natuzzi-italia.

GETTING WORKPLACES WORKING

Justin Mizzi analyses the evolving landscape of traditional office spaces in a post-COVID world. Offices must transition from obligatory workspaces to desirable environments that attract and retain talent. This transformation is driven by technological advancements, changing workforce demands, and the need for compelling benefits that remote work cannot offer.

The state of the office market and the future of work have spurred widespread discussion since COVID-19. Historically, offices were prized as the ultimate institutional real estate assets, attracting investors to their steady and predictable income streams. However, the sector has faced several unprecedented challenges that have raised questions about its future, which has become less predictable and more demanding.

While the situation is no longer as drastic, no one can deny that work and the dominance of the centralised, traditional office have changed, with profound implications for global office markets. Yet, amid these shifts, what does the future look like for the office?

What are the issues?

In addition to the challenges posed by rising inflation and interest rates, which have hurt all asset types, office landlords have had to deal with different challenges, mainly related to technological advancements. While these trends pre-date the pandemic, they have been turbocharged by it.

Supply challenges

Technological advancements have facilitated a more intensive utilisation of existing assets through densification and intensification strategies. This enables work to move into non-traditional offices and extend to other assets such as hotels, homes, or restaurants.

Consequently, the "office space" supply is no longer constrained solely by zoning regulations or the pace of new construction. Instead, it can evolve in new and unpredictable ways.

Locally, this has added to the prevailing risk of office market oversupply—a topic extensively deliberated over the past twelve months. Notably, the Grant ThorntonDhalia study 'The Malta Property Landscape, 2023' has deeply delved into this issue.

Structural changes

The word "office" derives from the Latin word "officium", which means 'performance of a task', which was contracted from the Latin word "opificium", literally 'work-doing'. However, today, technology is changing how office space is used and redefining how and where people go about their work.

The predominant global structural shift is the digitisation of our working and social lives, exemplified by the remote working revolution. This has given rise to remote and digital workers, digital nomads, hybrid work models, and greater flexibility in work hours.

Office buildings need to be convenient and include a variety of spaces and amenities

Additionally, the growing importance of ESG considerations—which has had a more substantial impact on offices than on other property types—should be acknowledged as a structural risk as it drives legislation and investor activity.

Changing demand

Office users are becoming more demanding than ever, particularly given the current state of oversupply. This has led to a tenant market and changes in traditional lease terms, such as lower lease periods.

The workforce is becoming more diverse, and Diversity, Equity, and Inclusion (DEI) strategies are top of the list for this trend. For the first time in history, it is possible to see up to five generations working side by side. Additionally, Malta has experienced a rapid influx of female and foreign workers over the past decade.

HR now also plays a pivotal role in office-related decisionmaking, as the workplace is increasingly recognised and managed as a corporate resource. Companies no longer want "space"; they want a productivity solution to help them attract and retain top talent while fostering productivity and employee satisfaction. Offices, therefore, need to be managed as a resource rather than an asset, marking a more significant shift in focus from "managing buildings" to "managing people".

The office is here to stay.

After years of significant uncertainty, the future path becomes more apparent as the hysteria dies down. While it is clear that remote working is here to stay and that there are regional differences, there has been positive news about the future of the office lately, with companies such as Zoom, Apple, and Amazon expecting their employees to spend more time at the office. →

The same applies to Malta. While the last public statistic showed that approximately 30% of Maltese people worked from home in 2022, several local recruitment experts suggest that this figure has reduced over the past two years.

The remainder of the 2020s will be a period of change, creating opportunities to embrace the different needs and uses caused by the evolving needs and challenges discussed above. This is, therefore, not the death of the office; it is just a change in its role.

Therefore, the future is about finding balance and a happy medium. Work-from-home (WFH) and remote working will sit side by side with time at the office or off-site meeting points. This will create new opportunities with more demand for flexible offices such as co-working spaces and serviced offices. So, while offices will be used less—but not enough that they will die—on the upside, they will most likely also be less dense regarding the number of workers per square metre.

The main reason for this is that offices are desirable. The office provides something that most thrive on: social interaction. Furthermore, numerous surveys abroad show that most workers value the office and want to return there for the right incentives—at least sometimes. The pandemic has demonstrated the opportunities and benefits of remote work and its challenges and disadvantages.

Offices also remain indispensable to most companies as they are vital in attracting and retaining staff, projecting meaningfulness, and contributing to company culture, values, and brand (i.e., the symbolic benefits). Office demand is evolving rather than disappearing, yet not all offices will thrive in this new era.

The future is about finding a balance where remote working coexists with time spent in flexible, welldesigned office environments.

Is green the answer?

While energy performance, ESG compliance, and green credentials were not unprecedented before COVID-19, their significance has surged, driven by increasing ESG sentiment, climate-related disasters, and regulatory developments.

As a result, there is a performance gap between the "best" (or Grade A) offices and the "rest" in the sector due to bifurcation (i.e., offices are splitting into two branches) driven by the rise in hybrid working arrangements and stricter working environmental regulations around buildings.

This also applies to Malta. There are currently only around ten local buildings boasting international green ratings, such as BREEAM and LEED, with offices representing all of them except one (the Vincent Moran Regional Hub in Paola being the exception), the MIA Sky Parks Business Centre (Luqa) being the first.

This figure will increase over the next decade, with

Offices need to be attractive enough for employees to want to come to work

new green office developments already in the pipeline. Additionally, retrofitting existing offices will likely increase to compete with the thousands of new stocks introduced to the office market every year and as a response to the eventual end of government intervention aimed at mitigating the impact of high energy prices.

However, investors must rely on more than just a building's green features to make a sound investment. While green features such as renewable energy sources, double glazing, EV charging points, and LED lighting are welcome, they will not necessarily translate to a better working environment.

Moreover, the stock of green buildings will eventually catch up with demand. When provided the freedom to choose, occupiers will be unwilling to compromise on quality for even the greenest buildings.

Therefore, offices must offer more compelling benefits than remote work by becoming places where people want to be rather than where people are obliged to be.

The qualities of quality

So, what does an attractive office look like besides being green and situated in a prime location? Seen from the occupier's perspective, this translates into the following essential requirements:

Functional benefits

Office buildings need to be convenient and include a variety of spaces and amenities, from meeting rooms and sick rooms to prayer rooms, designed to accommodate various work and event activities. They must also be flexible and adaptable enough to accommodate sudden and constant changes in headcount and goals and offer suitable parking options.

Moreover, having multiple uses within a single complex –such as gyms, supermarkets, event spaces, and catering and child-care facilities - adds value. In addition, proximity to sizable residential complexes promotes the "live-workplay" lifestyle, enhancing the overall appeal of the office environment.

Furthermore, the structure should be designed better to have longer lifespans and be climate resilient.

Experiential benefits

"Flight-to-quality" has become one of the key themes for the office market this decade. Offices need to be attractive enough for employees to want to come to work. This means being purposely built – ideally fully detached –business centres boasting superior specifications, a good

internal height clearance, external areas, natural light, and spacious entrance lobbies.

There also needs to be a focus on the S in ESG and the E by designing 'healthy buildings' that positively impact productivity and well-being, focusing on DEI principles and health and safety.

A sustainable way forward

Sustainable development is more than just about developing green, healthy or quality buildings which are not harmful to society or the environment. The third dimension of sustainable development – economic development – cannot be ignored, as the office market does not work in isolation. Its performance depends on the mix of office-using industries and the types of work done in each market. Therefore, A sustainable office market hinges on attracting and retaining high-quality firms and professionals (both local and foreign) – and a good stock of quality offices is not enough.

While I am optimistic about the office's future, several major concerns within our local market need to be addressed. These encompass our infrastructure and connectivity, planning policies and processes, the development process, quality of life and built environment, stability of the social and political climate, our reputation, availability of skilled labour, tax attractiveness and cost competitiveness, and ease of doing business. We simply cannot kill the goose that lays the golden egg.

The lack of market data, questionable quality, and consistency of professional advice only add to the challenge. Now more than ever, it is vital that office investment and management decisions are driven by quality data, good strategic advice, and a robust planning and economic vision rather than speculative impulses.

RECRUIT-ING SUCCESS

A decade of growth with M Recruitment's Duncan Fenech

Delve into the world of recruitment as Duncan Fenech, founder and CEO of M Recruitment, sits down with Dayna Camilleri Clarke to reflect on a decade of remarkable growth and innovation. From navigating challenges to seizing opportunities, Fenech shares invaluable insights and personal lessons, offering aspiring entrepreneurs a glimpse into the dynamic landscape of the recruitment industry.

As M Recruitment proudly celebrates its 10th anniversary, could you share the key milestones and achievements that have defined the company's remarkable journey so far?

Reflecting on our journey over the past decade, I see several key milestones and achievements that stand out. From our humble beginnings in a tiny office, we have grown exponentially to a company with over 200 employees. Our success is rooted in our extensive experience in the recruitment sector and our commitment to building the right team and establishing a solid company culture. Collaboration has been essential, ensuring we have the right people with the mindset to drive our growth. Initially processing just five CVs a week, we now handle around 300 daily, attracting prominent industry names and establishing ourselves as a formidable player in the market.

One of our earliest milestones was securing our first major client, which validated our approach and gave us the confidence to scale our operations. Over the years, we have continuously adapted to market demands, expanding our services and expertise across various industries. Our ability to stay agile and innovative has been a significant factor in our success. Another notable achievement is our investment in technology, which has streamlined our processes and enhanced our ability to match suitable candidates with the right roles efficiently. We've also focused on creating a supportive and inclusive work environment, which has helped us retain top talent and maintain high employee satisfaction.

How has your vision for M Recruitment evolved over the last decade, and what intriguing core strategies have propelled its growth in other industries and sectors such as engineering, pharma and medical, HR, and finance?

Our vision has significantly evolved, especially as we face challenges

like the pandemic. We've diversified our business and hired expert consultants to refine our recruitment processes. Understanding the roles we recruit for and deep comprehension of our client's company cultures have been integral to our success. The market is fast-paced, and we've moved away from traditional recruitment methods, actively seeking out talented individuals. This proactive approach and avoiding common business pitfalls while maintaining fairness have allowed us to expand into the engineering, pharma, medical, HR, and finance sectors.

Our strategy has always been to stay ahead of industry trends and anticipate the needs of our clients. We recognised early on that the recruitment landscape was changing, and we needed to adapt to stay relevant. This meant investing in technology and data analytics to understand market trends and candidate behaviour better. We've provided more tailored and effective recruitment solutions by leveraging these insights.

M Recruitment hosted a "Mingle" event to celebrate its ten years of operation

We've also placed a strong emphasis on building relationships with both clients and candidates. Understanding our clients' unique needs and cultures allows us to find the best fit for their organisations. Similarly, building rapport with candidates helps us better understand their aspirations and match them with the right opportunities. This holistic approach has been integral to our success in diverse industries.

Over the past ten years, what have been some of M Recruitment's most significant challenges, and how have you overcome them?

One of our biggest challenges has been sourcing the right people for the right roles. To overcome this, we have opened borders and expertly matched talent, investing heavily in finding and nurturing the right individuals. The pandemic forced us to adapt quickly, ensuring we maintained high standards while diversifying our services and client base. We've successfully navigated these challenges by staying flexible and responsive to market changes.

Another significant challenge has been maintaining a competitive edge in a crowded market. To address this, we've focused on continuous improvement and innovation. We've invested in advanced recruitment technologies, including AI and machine learning, to enhance our sourcing and matching capabilities. These technologies help us identify the best candidates more efficiently and accurately.

Furthermore, we've strongly emphasised training and development for our team. Ensuring our staff are well-equipped with the latest skills and knowledge, we've maintained high service standards and delivered exceptional client results. Our commitment to ongoing learning and development has also helped us attract and retain top talent within our company.

With the ongoing talent shortages, what innovative approaches has M Recruitment implemented to address these issues effectively?

Talent shortages are a persistent issue in our industry. At M Recruitment, our strategy involves planning and forecasting growth well in advance. We focus on thinking ahead and preparing for future demands, ensuring we are always a step ahead. This proactive approach allows us to mitigate shortages by anticipating needs and building a pipeline of qualified candidates ready to step in as opportunities arise.

We have also embraced flexible work arrangements and remote options to attract a broader talent pool. By offering more flexible opportunities, we've reached candidates who may not have been accessible otherwise. Additionally, we've expanded our reach internationally, sourcing talent from different regions to address local shortages.

Another innovative approach we've taken is implementing upskilling and reskilling programs. By partnering with educational institutions and training providers, we've offered candidates opportunities to develop new skills and transition into high-demand roles. This helps address the talent shortage and supports career growth and development for our candidates.

What are M Recruitment's critical growth areas, and how do you plan to sustain and expand your impact in the recruitment industry?

Looking to the future, we aim to solidify our base and expand our horizons beyond Malta. By widening our portfolio and supporting our colleagues, we plan to sustain our growth and impact. Balancing work and life remains a core value, ensuring our team stays motivated and productive. We can maintain our upward trajectory by investing in our people and embracing new opportunities.

We focus on expanding our presence in emerging markets and highgrowth industries. These areas offer significant opportunities for growth, and we are actively exploring partnerships and collaborations to enhance our capabilities in these regions. Additionally, we are committed to leveraging technology to drive innovation and improve our services. By staying at the forefront of technological advancements, we can continue to offer cutting-edge solutions to our clients and candidates.

What personal lessons have you learned as the founder of M Recruitment, and what advice would you give to new entrepreneurs entering the recruitment industry today?

One of my most valuable lessons is to believe in yourself and your ideas. It's crucial to listen to yourself while being open to criticism and not being afraid of hard work. Persistence is vital; keep knocking on doors and creating opportunities. For new entrepreneurs, my advice is to stay resilient, embrace challenges, and remain adaptable. The recruitment industry is dynamic and rewarding, and with the right mindset, success is within reach.

Another important lesson is the value of building solid relationships. Success in the recruitment industry heavily depends on your relationships with clients, candidates, and your team. Take the time to understand their needs, communicate openly, and foster trust. Strong relationships will help you navigate challenges and create opportunities for growth and collaboration.

Finally, always continue learning. The recruitment industry constantly evolves, and staying informed about the latest trends, technologies, and best practices is essential. Invest in your personal and professional development, and encourage your team to do the same. Continuous learning will help you stay competitive and deliver the best possible service to your clients and candidates.

Duncan with team members

DEVELOPING A SUSTAINABLE REAL ESTATE ECOSYSTEM

As Malta's real estate sector finds itself at a critical juncture, the island nation grapples with the dual challenges of rapid urban growth and the urgent need for sustainable development. The revelations from the Jean-Paul Sofia inquiry have sparked a crucial dialogue about overhauling safety regulations and sustainability practices within the industry. JP Fabri explores the current state of Malta's real estate, the European movements towards sustainability, and lessons from global benchmarks that could help Malta align with international standards, fostering a safe, efficient, and sustainable real estate ecosystem.align with international standards, fostering a safe, efficient, and sustainable real estate ecosystem.

The real estate sector in Malta is at a pivotal juncture, grappling with growing demands for economic growth, urbanisation, and sustainable development. The recent Jean-Paul Sofia inquiry report emphasised the need for a significant overhaul of safety regulations and sustainable practices, highlighting a lack of comprehensive oversight in construction practices and deficiencies in regulatory adherence. Addressing these gaps is crucial to fostering an efficient, safe, sustainable real estate ecosystem that aligns with European and international standards.

Malta's real estate sector has experienced remarkable growth over the past few decades. The country's strategic location and thriving financial services sector have attracted foreign investment, leading to rapid urbanisation and increased property demand. However, this growth has not been without challenges. The Jean-Paul Sofia inquiry revealed serious concerns about the lack of regulation and enforcement, especially around construction safety and environmental impact. A critical examination of Malta's regulatory framework and practices is necessary to ensure economic growth and sustainable development.

Moreover, Malta's geographical limitations as a small island nation compound sustainable development challenges. There is a pressing need to ensure that urbanisation efforts don't result in environmental degradation. The balance between preserving the natural landscape and meeting economic growth objectives must be carefully managed.

European-Level Movement Towards Sustainability

The European Union actively promotes a shift towards sustainability through various initiatives, most notably the European Green Deal and the New European Bauhaus movement. The New European Bauhaus aims to blend art, culture, social inclusion, and science to create more sustainable living environments across Europe. The movement advocates for aesthetically pleasing, environmentally friendly, and

inclusive buildings by encouraging innovative design and construction methods.

This initiative, combined with the European Green Deal's renovation wave, seeks to accelerate sustainable building renovations to improve energy efficiency, reduce emissions, and enhance the quality of life. Malta would benefit significantly from these initiatives if they aligned their policies with European standards. This would ensure compliance with EU directives and unlock funding opportunities that could accelerate the transition towards a sustainable real estate ecosystem.

Transformation Insights from Singapore and Ireland

Singapore's approach to real estate transformation provides valuable lessons for Malta. The Singaporean government launched Industry Transformation Maps (ITMs) to boost productivity, innovation, and digitalisation in various sectors, including real estate. Key strategies involved:

» Skill Development: A focus on equipping the workforce with relevant skills, emphasising a culture of continuous learning through initiatives like the SkillsFuture movement.

» Public-Private Collaboration: *Encouraging government and private sector collaboration to drive innovation and implement new technologies.

» Sustainability Mandate: Strong government mandates for green buildings and sustainable development, including the Green Mark Scheme, incentivising green construction practices.

Ireland, another island, has also made notable strides in developing a sustainable real estate sector.

» Policies: Implemented comprehensive policies to reduce carbon emissions from buildings, including nearly zero-energy building (NZEB) standards for new construction.

» Skill Sets: Focused on retraining and upskilling the existing workforce to adapt to new construction standards.

» Governance Structure: Established a centralised governance structure for sustainable real estate development, streamlining the approval and regulatory processes.

» Public Sector Role: The public sector played a pivotal role by setting high sustainability standards for government buildings and using them as benchmarks for private-sector projects.

Looking ahead

Based on insights from the Jean-Paul Sofia inquiry report and international case studies, the following recommendations can help Malta develop a sustainable real estate ecosystem:

Regulatory Overhaul: Review and tighten construction regulations, ensuring strict enforcement to prevent tragedies like Jean-Paul Sofia's

The Jean-Paul Sofia inquiry has laid bare the urgent need for a comprehensive overhaul of Malta's construction safety and sustainability

case. Regulations must align with EU sustainability goals, including energy efficiency and emissions reduction.

Skills Development: Launch a national skills strategy tailored to sustainable construction and green buildings, similar to Singapore's SkillsFuture. Collaboration with educational institutions and the private sector will ensure the workforce is well-prepared for sustainable practices.

Public-Private Collaboration: Encourage government and private sector partnerships to foster innovation and best practices. Incentivise green construction through tax credits and grants.

Centralised Governance: Establish a central authority or working group dedicated to sustainable real estate, as in Ireland. This entity would streamline regulatory processes, monitor compliance, and provide guidance.

Green Standards: Mandate stringent green building standards, drawing from Singapore's Green Mark Scheme and Ireland's NZEB standards. This would ensure all new construction and renovations contribute to Malta's long-term sustainability goals.

Public Sector Leadership: Ensure government buildings exemplify sustainable practices, setting high standards that inspire and guide the private sector.

Public Awareness Campaigns: Educate the public on the benefits of sustainable real estate, encouraging demand for eco-friendly housing and responsible urban planning.

Financial Incentives: Provide grants, low-interest loans, and other financial incentives for sustainable building and renovation projects to encourage private investment.

Malta is at a crossroads in its real estate sector's development. With challenges identified in the Jean-Paul Sofia inquiry and lessons available from Europe, Singapore, and Ireland, the government and private sector must work together to redefine the sector's future. By implementing the above recommendations, Malta can build a sustainable real estate ecosystem that ensures economic growth, environmental preservation, and societal well-being, setting an example for other small nations to follow.

BMW M4 CS

The Perfect Blend of Power and Precision

The all-new BMW M4 CS is a compelling addition to BMW's high-performance lineup, offering a blend of everyday practicality and race-track readiness. Under the hood, the M4 CS boasts a 3.0-liter, six-cylinder in-line engine with M TwinPower Turbo technology, delivering a remarkable 550 horsepower. This powertrain, coupled with an eight-speed M Steptronic transmission and M xDrive intelligent allwheel drive, enables a 0 to 100 km/h (62 mph) sprint in just 3.4 seconds.

This special edition M4 features a host of performance enhancements, including model-specific chassis tuning

and extensive use of lightweight materials like carbon fibrereinforced plastic (CFRP). These elements contribute to a 20-kg weight reduction compared to the M4 Competition Coupé with M xDrive, enhancing agility and driving dynamics. The M4 CS also sports a unique exterior design with exclusive paint options such as Riviera Blue and Frozen Isle of Man Green Metallic, complemented by carbon fibre elements and distinctive M badging.

Inside, the M4 CS merges a racing-inspired cockpit with top-of-the-line materials and cutting-edge technology. The standard M Carbon bucket seats, adorned in Merino

leather with a black/red colour scheme, offer both comfort and support for spirited driving. The BMW Curved Display with M-specific readouts and the latest BMW iDrive system ensure a driver-centric experience, providing intuitive control of vehicle functions and digital services.

The M4 CS delivers an exhilarating driving experience on the road, thanks to its race-tuned suspension, M Compound brakes, and track-focused tyres. The M xDrive system's rear-wheel bias and the Active M Differential enhance traction and handling precision, making the M4 CS at home on winding roads and racing circuits.

Overall, the BMW M4 CS is a masterful blend of power, precision, and luxury, appealing to driving enthusiasts who demand performance without compromising everyday usability. With its striking design, advanced engineering, and cutting-edge technology, the M4 CS is a formidable contender in the premium midsize segment.

Eco Revolution

How Malta's real estate boom goes green!

Paul Rostkowski examines the burgeoning field of sustainable real estate in Malta, focusing on how asset managers can navigate this green wave. By integrating Environmental, Social, and Governance (ESG) principles, investors increasingly demand properties that offer financial returns and contribute positively to the environment. This paradigm shift presents unique challenges and promising opportunities for Malta's robust real estate market.

The global real estate landscape is undergoing a green revolution, with sustainability emerging as the top priority. Investors increasingly seek properties that deliver solid returns and align with environmental, social, and governance (ESG) principles. This presents exciting opportunities for asset managers, particularly in locations like Malta, where real estate has been the country's backbone for numerous years. With a long-standing and robust real estate sector, Malta has the potential to become a haven for sustainable development. However, essential factors must be addressed to attract asset managers

seeking sustainable portfolios.

Beyond Location: Prioritising Functionality for Sustainable Returns

While location remains a key factor for any real estate investment, functionality takes centre stage for green portfolios. Here is how to translate that into action:

Prioritise walkable neighbourhoods and mixeduse developments: Look for properties where residents can access daily necessities like groceries, shops, and restaurants on foot or

by bicycle. This reduces reliance on car usage, minimises greenhouse gas emissions, and promotes a healthier lifestyle.

Seek properties near public transportation hubs: Easy access to public transportation, like bus routes, allows tenants to commute efficiently, reducing reliance on personal vehicles. Consider properties close to primary transportation links or with dedicated shuttle services to nearby hubs.

Amenities that foster sustainable living: Look for properties with on-site amenities that

encourage sustainable practices. Examples include bike storage facilities, electric vehicle charging stations, community gardens, and composting programs. These features attract environmentally conscious tenants and create a more sustainable living environment.

Renovation vs. New build

New construction often comes with a hefty environmental cost. Here is why renovation can be a greener, smarter choice:

Reduced embodied carbon: Demolition and construction of new buildings generate significant amounts of "embodied carbon"—the carbon emissions associated with materials, transportation, and construction processes. Renovating existing buildings minimises this impact and often utilises existing materials.

Revitalising communities: Thoughtful renovation projects can breathe new life into older buildings. This approach preserves architectural heritage, promotes a sense of community, and minimises disruption compared to large-scale new construction projects.

Energy efficiency: Upgrades can significantly improve many older buildings. Investing in insulation, high-performance windows, and energy-efficient appliances can dramatically reduce a property's environmental footprint and operating costs.

Long-term vision: Building for a sustainable future

Sustainability isn't just about the here and now. Asset managers must consider the building's lifespan and adaptability when selecting properties:

Future-proof design: Choose properties designed with adaptability in mind. Flexible layouts that can be easily reconfigured for different uses can extend the building's lifespan and reduce the need for future demolition and reconstruction.

Sustainable building materials: When renovations are necessary, prioritise materials with low environmental impact. These could include recycled or locally sourced materials, materials with high thermal performance, or materials readily biodegradable at the end of

their lifespan.

Smart building technology: Investing in intelligent technologies can significantly improve a property's sustainability profile. Systems that monitor energy consumption optimise lighting and heating/cooling, and automate water management can lead to long-term efficiency gains and operational cost savings.

Challenges and opportunities in Malta

Data transparency: Asset managers in Malta face a challenge in accurately assessing a property's sustainability due to inconsistent data collection and reporting on environmental performance, like energy consumption and water usage. A centralised database with standardised reporting formats, similar to existing energy rating systems, would be a major step forward. Furthermore, artificial intelligence (AI) and machine learning could analyse existing data and predict future performance to address limitations in historical information, allowing asset managers to make informed decisions regarding property sustainability.

Incentives and regulations: While Malta has some green building initiatives, a more comprehensive framework with clear incentives and regulations is needed. Developers may be hesitant to prioritise sustainable features due to perceived higher upfront costs. Implementing a system of tax breaks for green construction or streamlined permitting processes could be powerful motivators. For example, creating a tiered property tax system based on a building's environmental performance could incentivise long-term sustainability efforts. AI can be used to analyse the cost-effectiveness of various green building options. By factoring in potential energy savings, operational cost reductions, and potential tax benefits, AI can create a clear picture of the long-term return on investment for sustainable features.

Long-term planning: Despite some green building initiatives, Malta's need for a clear, long-term vision for sustainable urban planning is a significant challenge. Disjointed development projects can disrupt communities and harm the environment. To address this, Malta needs a comprehensive plan that promotes green infrastructure

alongside existing neighbourhoods, potentially including mixed-use development, dedicated green spaces, and robust public transportation. AI and machine learning can be powerful tools in this process, analysing data to model and simulate different urban planning scenarios that prioritise sustainability and a high quality of life for residents.

Collaboration is key: Building a robust green real estate market in Malta necessitates a multi-stakeholder approach. Here's how pivotal players can work together:

Government: The government can set the stage with a clear national sustainability strategy for real estate. This could involve offering incentives like tax breaks for green construction or streamlined permitting processes, promoting transparency through a centralised data collection and reporting system, and utilising AI to optimise urban planning and resource allocation.

Asset managers: With their expertise in identifying and managing investments, asset managers can leverage AI to analyse vast amounts of data on potential properties' energy consumption and environmental performance. This data-driven approach can help them identify green, solid real estate opportunities and advocate for stricter sustainability practices within the industry.

Developers: Developers play a crucial role in translating green principles into reality. They can embrace sustainable design principles and incorporate energy-efficient technologies into their projects. Collaboration with asset managers, facilitated by AI analysis of longterm cost-effectiveness, can ensure these features are implemented, well-maintained, and optimised for long-term performance.

The future of real estate in Malta needs to be undoubtedly green. By addressing the concerns raised by asset managers and taking concrete steps to incentivise and facilitate sustainable development, Malta can unlock its full potential as a green real estate haven. Collaboration between government, industry players, and the community is essential to create a thriving green real estate market. With a commitment to sustainability, Malta can attract environmentally conscious investors and establish itself as a leader in the global green real estate landscape.

BUILDING GREENER

Malta's Path to Sustainable Development

In the race to combat climate change, the European Commission's directives for the building and real estate sectors are pivotal pillars of the continent's ambitious environmental agenda. Ing. Stephen Mallia delves into Malta's journey towards aligning with these directives and its transformative potential for the island nation.

The European Commission's requirements for the building and real estate sectors are a crucial component of the broader European Union strategy to meet ambitious environmental, economic, and social objectives. These requirements aim to reduce greenhouse gas emissions from one of the most significant contributing sectors by enhancing energy efficiency and promoting the integration of renewable energy sources.

Buildings in Europe account for approximately 40% of energy consumption and 36% of CO2 emissions. The EU must address this footprint to achieve its 2030 climate and energy framework targets, which include a 40% cut in greenhouse gas emissions, a minimum 32.5% improvement in energy efficiency, and at least a 32% share of renewable energy consumption.

These measures also align with the European Green Deal, which seeks to make Europe the first climate-neutral continent by 2050.  This ambitious plan includes renovating public and private buildings to be more energyefficient.  It is a win-win: it reduces emissions, addresses energy poverty by lowering energy bills, and supports social equity.  Improving the energy performance of buildings also directly enhances the quality of life by ensuring healthier, more comfortable living and working environments.

The drive towards more energy-efficient buildings also stimulates economic growth by creating demand for new jobs in the

construction, renovation, technology, and green energy sectors.  It encourages innovation by adopting new technologies and practices, such as smart building technologies, advanced insulating materials, and sustainable architecture designs.  This is essential for achieving climate targets and supporting the EU's economic growth by fostering innovation and securing energy supply.

In the face of climate change, these building standards make it possible to make infrastructure more resilient against extreme weather events.  This ensures sustainability in urban planning and construction practices.  Furthermore, the European legislative framework, including directives like the Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive (EED), mandates that member states, including Malta, adopt these measures to align with the Union's broader climate and energy goals.

Europe's building sector is transforming the built environment into a more energy-efficient and less carbon-intensive component of the urban landscape.  This transformation is essential for meeting current and future climate and energy challenges.  Europe must remain at the forefront of global efforts to foster sustainable development and climate resilience.

The European Commission has evaluated Malta's National Energy and Climate Plan (NECP) for 2021–2030 as a more significant

effort to meet the challenging 2030 energy and climate objectives outlined in the European Green Deal and REPowerEU Plan.  The plan effectively addresses energy security by setting targets for reducing gas and oil consumption through efficiency and renewable measures. It supports the transition to low-emission mobility, particularly in the maritime sector.  However, several areas require substantial enhancement.

Firstly, the plan must catch up on greenhouse gas emissions and removal projections. This omission makes it challenging to assess whether Malta will meet its future targets under EU regulations, such as the Effort Sharing Regulation and the Land Use, Land Use Change and Forestry Regulation.  Additionally, Malta's ambition for renewable energy significantly lags behind EU expectations, proposing only an 11.5% contribution to the

EU target of 28%, indicating a critical gap in planning and execution.

Malta must adopt more ambitious measures to improve energy efficiency and meet the criteria.  The current projection exceeds the EU threshold, indicating that Malta must implement stricter policies to avoid exceeding the 0.7 Mtoe (million metric tonnes of oil equivalent) energy consumption target set by EU legislation. Until October 2023, we exceeded this target by an additional 14%.  The plan also lacks comprehensive strategies for adapting to climate change, a significant oversight that could jeopardise achieving broader energy and climate goals.

The European Commission has recommended several actions to align Malta's NECP with the Union's climate-neutrality objectives. Malta must take action to align its NECP with the Union's climate-neutrality objectives. This includes raising the ambition for renewable energy, enhancing energy efficiency measures, providing detailed projections for GHG emissions and removals, developing actionable adaptation policies, addressing energy poverty, updating building renovation strategies, phasing out fossil fuel subsidies, and ensuring robust public participation in the plan's revision process. By addressing these recommendations in its final NECP submission by June 2024, Malta can ensure compliance with EU directives and contribute effectively to the collective goal of a sustainable and resilient energy future.

Malta must address these deficiencies in its NECP by incorporating detailed projections, increasing renewable energy targets, implementing stringent energy efficiency measures, developing robust adaptation strategies, providing clear plans for building renovation, and addressing energy poverty.  These steps are essential for aligning Malta's energy and climate strategies with the EU's ambitious 2030 goals.

Malta must address energy efficiency, renewable energy integration, and sustainable building practices. This includes strengthening building regulations and enforcing adherence to building codes that mandate the appropriate energy efficiency standards for new and existing buildings. Proposals like better insulation, high-efficiency windows, and energy-efficient heating and cooling systems

should be the norm. Malta should adopt standards already utilised in the EU's nearlyzero energy buildings (NZEB) criteria for all new builds and major renovations.

The government must provide additional financial incentives for building renovations. These incentives should target older buildings with poorer energy performance ratings and support the replacement of energy-efficient appliances and systems.

Incentives in feed-in tariffs should be more attractive for those willing to re-invest in renewables, such as expanding or exchanging their solar photovoltaic panels, solar thermal systems, and heat pumps.

We must enhance the use and scope of EPCs in Malta by providing additional incentives for properties with a low carbon footprint. This will drive prospective buyers to favour properties with an embedded energy-conscious design.

Professional training and public awareness about the benefits of energy efficiency and sustainable building practices for architects, builders, and engineers in the latest energyefficient technologies and building techniques.

Malta must invest in research and development programs for new energyefficient building technologies suited to its specific climate and urban landscape. This can be done in collaboration with universities and private sector stakeholders.

Malta must also integrate sustainability into urban planning requirements to encourage compact, mixed-use developments that reduce the need for transportation and lower overall energy consumption.

Focusing on the building and real estate sectors can and will significantly improve Malta's energy and climate targets. This will contribute to broader national goals for energy efficiency, reduced greenhouse gas emissions, and resilience to climate change.

Consumers must take responsibility for reducing their carbon footprint.  The EU's Eco-Design Directive and Energy Labelling Regulation provide guidance and empowerment to make environmentally conscious choices.  These regulations reduce energy demand and offer significant financial

benefits, creating a favourable situation for sustainability and household economics.  By choosing products with superior energy labels, consumers can significantly reduce the energy consumed in their homes, lowering the overall energy demand. A considerable portion of this is still generated from fossil fuels across Europe. The detailed information on the energy labels enhances consumer understanding and comparison of the energy efficiency and consumption of appliances before purchase, promoting a more informed decision-making process.  These directives and regulations are set to deliver substantial financial benefits.  They are projected to yield considerable energy savings – about 230 Mtoe by 2030, translating to an average annual saving of up to €285 per household on energy bills.  This reduction in energy usage primarily stems from the higher efficiency of appliances and products.  While energy-efficient products may carry a higher upfront cost, their operational costs are generally lower, allowing the initial investment to be recuperated over time through savings on energy bills.  Furthermore, high-efficiency appliances and installations benefit the property market, as they often command higher market values and achieve better EPC certificate results.  This makes energy-efficient properties increasingly desirable.

The European Commission's recommendation for a 90% net greenhouse gas emissions reduction by 2040 indicates Malta's future direction.  This will significantly impact various sectors, including building and real estate.

Integrating energy-efficient technologies in real estate is a regulatory requirement and a strategic imperative for developers and manufacturers looking to stay competitive.  As indicated, several measures from both an authority point of view and the culturechanging customer will be able to implement the more significant change in sustaining local building and real estate in an environmentally sustainable manner.  Despite the challenges posed by compliance, such as cost and technical feasibility, collaboration among stakeholders and proactive measures can help overcome these hurdles.  Embracing sustainability and adhering to EU directives is the way forward for the real estate industry.  By doing so, we can contribute to building a greener, more resilient future for communities across the European Union.

Property dreams vs reality

Is buying always the right choice for young people?

Buying property in Malta is increasingly challenging, particularly for young, unmarried couples grappling with skyrocketing prices and stagnant salaries. As a money coach, I've observed firsthand the societal pressures and economic dilemmas these individuals face. Luca Caruana explores strategies for tackling Malta's real estate market, offering insights into sustainable purchasing and financial planning tailored to unmarried couples.

The

pressures young people face

A few months ago, I was coaching a 28-yearold client. He had saved €50,000 in liquid funds and was poised to deposit money for a property to live in with his partner. At the last minute, he cancelled the appointment to sign the promise of sale with the notary.

He felt uncomfortable buying the property and taking out an almost 40-year loan. He only did it because his parents constantly pressured him to buy, buy, and buy. Why? Because the property is considered by many to be one of the best investments anyone can make in Malta.

This reasoning may be based on some hard facts: after all, property prices in Malta have a history of constantly increasing in value. However, in the case of this client, he preferred leading a nomadic life. He and his partner barely lived in the same place for over a month. Their hybrid jobs allowed them to work from anywhere, and that is what they did. Sometimes, they worked from Sicily, and

at other times, even in South America and Asia. Buying that property might seem like one of the best investments, but what about the lifestyle they want to lead?

Here, I urge parents not to put too much pressure on their children. I know you have their best interests at heart, but remember, not everyone has the same idea of a rich life, and sometimes, too much pressure can lead your children to make a decision they will regret and resent for the rest of their lives.

Legal considerations for couples buying property

Purchasing property as an unwed couple presents unique legal challenges and considerations. Unlike married couples, unwed partners do not automatically benefit from certain legal protections concerning property ownership and inheritance. Here are vital issues unwed couples should address when buying property together:

Co-Ownership Agreement: Unwed couples

must establish a co-ownership agreement. This document should outline each partner's contribution to the purchase price and ongoing expenses and specify what happens to the property if the relationship ends or one partner dies.

Ownership Structure: Unwed couples must decide whether to hold the property as "joint tenants" or "tenants in common." Joint tenancy includes the right of survivorship, meaning if one partner dies, the other automatically inherits their share. In contrast, tenancy in common allows each partner to bequeath their share to someone other than their partner in their will.

Financial Contributions and Mortgage: If only one partner's name is on the mortgage, this could lead to complications if the couple separates or the mortgage holder dies. Legal advice is essential to ensure that both parties' contributions are recognised and protected.

Inheritance Law: Under Maltese law, the surviving partner may not automatically

inherit the other's share of the property without a will. Each partner should have a valid will that reflects their wishes concerning the property.

Tax Implications: Unwed couples may have different tax implications, especially regarding inheritance taxes and capital gains. Understanding these implications before purchasing can prevent unexpected financial burdens later.

The Maltese Real Estate Challenge

In Malta, purchasing property is not just a financial transaction but a cultural expectation. Historically, owning a home has been a rite of passage, providing security and financial stability. However, the reality today is harsher, with high costs and long-term financial commitments such as:

» Initial Costs: Deposits, notary fees, and other upfront expenses.

» Long-Term Debt: The prospect of a 30- to 40-year mortgage can be daunting.

Given these conditions, buying or renting is complex and influenced by personal lifestyle choices and financial situations. Nevertheless, if you are determined to buy that property, there are several strategies one can implement to make the investment feasible.

Forecast Spending Plan: A tool for financial empowerment

When facing the daunting task of property investment, particularly in challenging markets like Malta, having a robust financial management tool is essential. The Forecast Spending Plan (FSP) offers a structured budgeting approach and empowers individuals to make informed financial decisions.

Here's a detailed exploration of how the FSP can be tailored specifically to real estate ambitions, seamlessly blending its components for maximum effectiveness.

1. Setting and identifying financial goals

Purpose-driven planning: Begin by defining your financial targets with absolute clarity—

what you're saving for should guide every other financial decision. For real estate, this could mean identifying the type of property you aim to buy and estimating its cost. Visual tools like savings graphs or images of potential homes can serve as daily reminders and motivators.

2. Prioritising savings

Automating financial priorities: Adjust your financial planning to prioritise property savings after setting your goals. Automate transfers to a dedicated savings account immediately after receiving your income to ensure that saving for your home remains a top priority. This reduces the temptation to spend on less essential items.

3. Tracking and adjusting expenditures

Regular reviews for better control: The effectiveness of your FSP hinges on your commitment to regularly tracking your progress and adjusting your plans accordingly. Conduct monthly reviews to compare actual spending against your budget, and use financial tools that offer real-time insights and alerts to keep you on course.

4. Comprehensive income and expense analysis

In-depth financial oversight: Understanding where every euro goes is crucial to the FSP. Organise your expenses into housing, utilities, food, and entertainment categories. This categorisation helps pinpoint areas where spending can be reduced to bolster savings. Distinguishing between fixed and variable expenses allows for more targeted adjustments, focusing on minimising variable costs.

5. Planning for the long term

Adapting to changes: As your financial situation evolves, so should your FSP. Anticipate future changes like salary increments or new financial obligations and adjust your plan accordingly. This forwardlooking approach prepares you for upcoming expenses and ensures your financial strategy aligns with your long-term goals.

Benefits of a strategic approach

By focusing on specific, achievable goals, unmarried couples can better manage their finances and work towards buying property in Malta. This strategic approach offers several advantages:

» Clarity and Direction: Knowing precisely what you're saving for helps maintain focus and motivation.

» Shared Responsibility: For couples, sharing the financial burden eases individual pressure and fosters mutual support.

» Long-term Planning: Setting 5, 10, and 15-year goals ensures that immediate and future needs are addressed.

Renting vs buying: A comparative perspective

While buying may offer stability and equity growth, renting provides flexibility and less financial strain upfront. Here's a quick breakdown:

» Pros of Buying: Stability, equity growth, freedom to renovate, and potential long-term gains.

» Cons of Buying: Large initial investment, ongoing maintenance costs, and market risk.

» Pros of Renting: Flexibility, minimal initial costs, no maintenance worries, and easier budgeting.

» Cons of Renting: No equity building, potential rent increases, and less control over the living space.

The decision to buy or rent in Malta requires careful consideration of one's financial situation and lifestyle preferences. For many young people, especially those enjoying a nomadic lifestyle, renting might be more suitable. However, purchasing a property remains worthwhile for those seeking long-term security. Making informed, personalised decisions is crucial. Whether you decide to buy or rent, understanding your financial landscape and having a clear plan is essential for achieving your property ownership goals in Malta.

Beyond Sustainability

Constructing a Regenerative Future

Ed Muscat Azzopardi explores the revolutionary shift from mere sustainability to regenerative construction. Discover how visionaries like Steve De Micoli are redefining industry norms to build environments that don't just sustain but actively enhance the ecosystems they inhabit.

One of the principles that defines our work at Switch is a long-term view. We strongly believe that all resources are better used when viewed over time frames spanning more than quarterly results. We emphasise this consideration when onboarding a new client, and it took on a life of its own when we started to work with Mattermake.

Early in the relationship, it was evident that we had the same quarrel with the word 'sustainability' and how it has become such a throwaway term. Although it is at the top of every business agenda, we only see slow, incremental progress, mainly due to regulatory frameworks. Rather than sticking to our internal views, we contacted Mattermake because they think radically differently about almost everything. Working with architect, designer, manufacturer, thinker, and innovator Steve De Micoli has been a privilege; conversing with him is always stimulating and thought-provoking.

He is the founder of Mattermake, a fabrication-oriented architecture and design studio and, in his quiet and humble way, a rare visionary. When speaking about the word sustainability itself, particularly in the context of how we construct our built environment, Steve was quick to lament the issues with frameworks such as ESG because they lay out a prescribed set of policies that one must adhere to if one wants to consider their efforts to be sustainable. These frameworks, he points out, allow the industry to tick the Boxes without needing to innovate or even collaborate with other industries for a multi-skilled approach to the issues surrounding us.

The construction industry has long focused on reducing its environmental impact using recycled materials and energy-efficient designs. However, a simple "reduce and reuse" approach may no longer be enough to create truly sustainable and regenerative built environments. Steve believes the key to meaningful change is not reduction but regeneration.

This sentiment echoes that of another of our forward-thinking clients, Furnitubes. We've been working with them to garner support for radical new approaches to material choice in manufacturing urban outdoor furniture.

Their definition of sustainability is strikingly similar to Steve's in that it breaks the mould of "doing more with less." Rather than merely lessening the negative impacts, the goal should be to cultivate abundance through designs that actively enhance the ecosystems they inhabit. "Push for abundance, not frugality", Steve insists. This shifts our mindset from one where we attempt to limit the impact of our activities to one where we think of maximising the positive impact we could have.

In the UK, new policies now mandate all construction to increase local biodiversity by at least 10%. Consider this a baseline; the ambition is

to vastly exceed these targets through designs that give back more to their environments than they consume.

Another area for improvement is the compartmentalised view that most industries take to sustainability, patching up existing practices rather than looking outward and seeking to make unusual connections. Collaborative thinking is a staple of our industry—we work with an incredibly diverse set of thinkers,  of course—but it is uncommon in the construction industry. Luckily, it is not entirely unheard of.

One remarkable example of this approach is using waste fabric to reinforce concrete. This unlikely collaboration between the fashion and construction industries demonstrates that unusual allies exist. As Steve notes, "Once you start to see the infinite possibility of connections we haven't yet made, you realise how much innovation is still untapped."

Mattermake's innovative projects embody this spirit of interconnectedness. One such project involves 3D printing organiclooking structures that can be stacked to create artificial "coral reefs," a collaboration between Mattermake, Zibel and the University of Malta. This pioneering work is intended to adhere to the submerged walls of

than deplete, Steve believes the built environment must transition to a symbiotic, interconnected approach. Combining this with a regenerative mindset, we can move beyond sustainability and strive for abundance rather than compromise.

Rather than focusing on reduction, we must embrace regeneration as the key to meaningful change.

concrete jetties, typically barren wastelands, transforming what was once a lifeless structure into a concentrated node of biodiversity by providing a habitat for many marine species.

By leveraging cutting-edge techniques and sustainable materials, Mattermake is redefining the boundaries of what is possible in construction. His studio is a playground for a vividly imaginative team that applies their minds to unusual solutions for sustainable dwellings, workspaces, and, apparently, the bits no one ever thinks about, such as the invisible part of our constructed coastline.

We're suddenly talking about permaculture. Steve draws inspiration from principles of permaculture and biomimicry—models that have existed for decades yet struggled to permeate mainstream construction. Just as regenerative agricultural practices enrich rather

This paradigm shift has far-reaching implications. "Rather than focusing on individual dwellings or buildings, we can design entire cities that thrive in harmony with their surroundings", is Steve's take on this.

The construction industry is poised on the cusp of a revolution. The old paradigm of compartmentalisation and reduction is giving way to a new era of regeneration and abundance.

Steve and the international community of like-minded innovators are illuminating the path forward for a construction industry ripe for transformation. As we navigate the complexities of sustainability, it's clear that the most profound innovations will arise from the intersections between sectors, disciplines, and ways of thinking.

As we look to the future, it's clear that the construction industry has a critical role in shaping a more sustainable, regenerative, and abundant world—and it has an obligation to do so. Suppose we have the wisdom to listen to the visionaries leading the charge. In that case, we can create a built environment that minimises its impact and actively enriches the world around us.

Where does this leave us? We can all work on as much as is within our reach. At Switch, we can do what we do best: work with those who have technical brilliance and need the ability to communicate their mission clearly and in a way that reaches the right audiences, no matter how unlikely they may be. When successful, it will be apparent that the possibilities are endless. It's up to us to create an environment that fosters unusual discourse to maximise our impact on the planet as long as it is lasting and positive.

€170

MR COOL

From cotton to lightweight materials, summer is all investing in the right fabrics.

MONEY showcases a summer wardrobe.

[All items available from mrporter.com, unless otherwise specified]

€1,690 ON Cloudnova Z5 rush rubber-trimmed recycled-mesh sneakers

ADIDAS ORIGINALS + Wales Bonner Samba

nylon, suede and croc-effect leather sneakers

€180

Cotton and silkblend terry shirt

SAINT MXXXXXX + Sean wotherspoon printed cottonjersey t-shirt

€425

ZEGNA

MR P.

Open-knit cotton cardigan

€360

THE ROW

Marlon straight-leg

cotton trousers

€1,180

POLO

RALPH LAUREN

Stretch cotton-twill shorts

€125

JACQUES

MARIE MAGE

+ Union D-Frame

acetate and silvertone sunglasses

€840

LOEWE

Puzzle fold extra-large leather-trimmed raffia tote bag

€2,700

FRESCOBOL CARIOCA

Rafael grosgrain-trimmed straw panama hat €245

SANTOS DE CARTIER WATCH

Large model, automatic movement, steel, ADLC, interchangeable rubber and leather bracelets POR / elcol.com

Global Payments (NYSE: GPN) has launched a new app in Malta that transforms mobile phones into payment terminals. With increasing card payments, especially among tourists, this app allows businesses to accept card payments via smartphones, eliminating the need for ATMs.

The GP Tom app, compatible with Android 8 phones with NFC chips, enables merchants to accept card payments without traditional terminals. It benefits small businesses and sectors like taxis, couriers, and small shops.

Receipts can be sent electronically, making the solution eco-friendly.

Global Payments launches a smartphone card payment app in Malta Pomellato's Revolution

Pomellato introduces its "Free Gems" philosophy, emphasising freedom in gemstone selection, cutting, settings, and design, reflecting its mission to empower women and celebrate individuality. This approach

manifests in its innovative jewellery designs, highlighting each stone's unique character for contemporary creative expression. The Nudo ring, launched in 2001, revolutionised jewellery with its luminous gemstone solitaire that

Integrating the GP Tom app with cash register systems is a breeze. The app allows merchants to view transaction histories and connect to other devices wirelessly. It prioritises security with floating keypads for PIN entry and supports popular payment methods like Google Pay and Apple Pay, ensuring a seamless and convenient experience for both merchants and customers.

GP Tom is available on Google Play. For more information, visit at www.gptom.com/en.

appears to float, symbolising liberty through its setting-free and prong-less design, enhancing the gem's individuality. Creative Director Vincenzo Castaldo describes Nudo as a metaphor for women's freedom, with its unique cut and setting technique allowing light to interact with the gem's facets.

Pomellato's Sabbia collection showcases a distinctive approach to diamond jewellery, featuring organically irregular pavé settings that highlight the character of each diamond, creating nuanced light and shadow interplays. This approach to imperfection and the use of rough gemstones in high jewellery pieces underlines Pomellato's commitment to natural beauty and independence. The "Ode to Milan" collection further explores the "Free Gems" concept with vibrant, unusual-coloured gemstones that embody strong emotions. High jewellery represents the zenith of Pomellato's creative freedom, daringly combining colour gemstones and introducing unconventional diamond shapes and compositions named Charivari, embodying the brand's free-spirited essence.

Pomellato Gem Master Stefano Cortecci and Creative Director Vincenzo Castaldo