New housing drive aims to ease land pressure in the Malé region

The government has launched its most extensive housing push in years, moving to ease long‑standing land shortages in the Malé region through new affordable flats, major land‑allocation schemes and large‑scale reclamation in Rasmale’ and the Giraavaru lagoon. President Dr Mohamed Muizzu has framed housing as the country’s most urgent social challenge, saying in his Presidential Address that “social development and social security can only be fully realised when we address the greatest social challenge facing our nation — housing.” He said delivering a permanent solution is one of his administration’s highest priorities.

Expanding land and housing under Housing for All

Under the first phase of the Housing for All policy, 15,000 plots will be allocated in the Malé area and Rasmale’, while 7,900 three‑bedroom flats will be allocated in Hulhumalé and Villimalé. These opportunities are open to families without housing, with applications accepted through the Housing Portal.

The President said the policy guarantees every Maldivian the right to secure and dignified housing. It aims to provide affordable homes across all income groups by expanding access to real‑estate housing for higher‑income families, enabling middle‑income families to buy homes through bank mortgages and constructing social housing for those unable to secure housing on their own.

A new Family Housing Programme has also been launched. To ensure fair access, a separate category will soon open for applicants who currently live in housing registered under their spouse’s name. Joint recipients of land under the 2022 Binveriya Scheme will be allowed to apply individually if all recipients agree to vacate the previously allocated plot. Out of the 15,000 plots, 1,000 plots each have been reserved for these two new categories.

Affordable Home Ownership Programme sets fixed prices

Housing Minister Dr Abdullah Muthalib said 1,000 new units planned for Hulhumalé under the Affordable Home Ownership Programme will be sold at MVR 1.8 million (about USD 116,700) for two‑bedroom flats and MVR 2.3 million (about USD 149,200) for three‑bedroom flats. The units will be built by private developers on land provided free of charge, with prices set by the state to keep them below market levels.

At a press briefing at the President’s Office, he said the programme is designed for families able to take bank mortgages, offering a path to ownership while social housing continues to support low‑income households. “We will give the land free of charge and provide additional incentives for first‑time home buyers under the family housing scheme,” he said.

The government aims to establish 5,000 affordable housing units through public‑private partnerships. The third phase of the programme opened last week with a call for proposals to build 1,000 units, and land has already been allocated for the full target.

New financing rules and 3,260 more units

In his Presidential Address, President Muizzu said the Maldives Monetary Authority has formulated an Inclusive National Affordable Housing Regulation to increase the banking sector’s role in housing finance. As a result, the Bank of Maldives has awarded contracts to two international companies and three local companies to build 3,260 housing units in Hulhumalé. Construction will begin this month, and all units are expected to be completed and handed over within 30 months. These homes will be allocated to beneficiaries selected under the government’s social housing scheme.

Reclamation to expand long‑term land supply

Large‑scale reclamation is underway in Rasmale’ and the Giraavaru lagoon, central to the President’s pledge to expand land availability for future phases of Housing for All. These new islands are expected to ease pressure on the Malé region and support long‑term population planning.

Legal reforms to stop illegal renting

Dr Muthalib said the government is amending the law to prevent the renting of Hiyaa flats and other social housing units in Hulhumalé. Of the 4,000 flats handed over, many were issued under rent‑to‑own agreements that already prohibit subletting. Action will be taken against those renting out units under the Veshifahi Corporation. Offenders will be fined and given time to correct the violation, after which the flat may be confiscated.

There have been difficulties enforcing rules on units issued under sales‑purchase agreements. The minister said the agreements already prohibit illegal activity, and the law will now explicitly ban renting. Notices have been issued to stop accommodating expats in social housing and Hiyaa flats, and these spaces are being vacated.

New land‑allocation schemes

Two new land‑allocation programmes published in the Gazette were highlighted at the press conference by Dr Muthalib. One scheme allows spouses who are unable to apply under existing programmes to submit applications in their own names. Another Special Scheme allows groups who previously applied jointly under the earlier landlord scheme to surrender that application and receive individual plots. Each programme will allocate 1,000 plots.

Applications open online

Applications for the 15,000 plots and 7,900 flats are open until the end of next month. Applications for the Special Scheme will be accepted from the 24th of this month until the 30th of next month. All applications must be submitted through the Housing Portal. In the Maldives, housing applications are handled entirely online, with no physical queuing or in‑person submission required.

The government says the combined measures — new housing supply, controlled pricing, expanded land availability, improved financing and legal reforms — form a long‑term effort to stabilise the housing market and ensure every citizen has access to secure, affordable living.