Maldives unveils new housing policy amid affordability crisis
Plan includes 15,000 land plots, 7,500 flats and a new financing scheme requiring banks to allocate up to 15pc of loan portfolios for affordable housing
MALE, Maldives (MNTV) — The Maldives has introduced a wide-ranging housing policy aimed at tackling the country’s deepening affordability crisis, as soaring land prices, limited financing options, and rapid urbanization continue to strain families living in the capital region.
The policy, called Boahiyaavahikan Enmenah (Housing for All), was formally launched in Malé on Sunday following months of consultations between construction officials, banks, and the Maldives Monetary Authority (MMA).
It comes at a time when the housing shortage — particularly in the Malé, Hulhumalé, and Vilimalé areas — remains one of the country’s most urgent socio-economic challenges.
Officials at the launch said the new framework is meant to serve Maldivians aged 18 and above, reflecting the growing pressure on both low- and middle-income households.
Research conducted for the policy found that a significant share of Malé’s population now depends on social housing schemes, while many middle-income families remain unable to save or qualify for bank financing despite steady earnings.
Analysts say this gap — where wealthier groups can buy luxury apartments while middle-income renters remain locked out — has reshaped the housing debate in the Maldives. The new policy acknowledges that social housing alone cannot solve the demand crisis.
A central feature of the initiative is the Inclusive National Affordable Housing Scheme, introduced by the MMA last month.
Under this regulation, banks must allocate 10–15 percent of their loan portfolios to affordable housing products, an attempt to counter high interest rates, strict equity requirements, and limited financing options that have historically excluded large segments of the population.
Banks can choose between two financing approaches:
- Lease ending with ownership, where residents pay rent that eventually converts into ownership, or
- End-user financing, where developers provide the financing and banks support the borrower directly.
The first major project under the scheme will be developed by BML Affordable Home Leasing Pvt Ltd — a subsidiary of the state’s largest bank — which plans to build 3,000 flats across Vilimalé and Hulhumalé phases. These units will be offered through a lease-to-own model, with ownership transferring after the rental period ends.
Housing shortages continue to reshape political debate in the Maldives, where the capital region — one of the most densely populated urban areas in the world — faces chronic overcrowding and unaffordable rents.
Officials have said the government intends to issue 15,000 land plots and 7,500 flats in the coming phases of its housing program, though the broader impact of the new policy will depend on financing availability and long-term affordability.
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