Hulhumalé keeps growing. After Phase 1 and the large Phase 2, a third phase has been reclaimed, and another area, often called the Urban Island, is back in the news after the Housing Minister said in October 2026 that the developer Eagle Hills would build 5,000 flats there. For families waiting for housing and for investors watching supply, these projects matter. This guide sets out what is planned, what has actually happened, and what it means for buyers.
Large projects change quickly, and different outlets report different figures. We give the figures that have been reported and note where they conflict. Check official announcements before making decisions.
Hulhumalé in context
The Hulhumalé master plan, published in 2025, sets out space for about 100,000 people in Phase 1 (around 194 hectares) and about 250,000 in Phase 2 (around 251 hectares). Phase 3 and the Urban Island add further land for housing and city functions. For background on the first two phases, read Hulhumalé Phase 1 vs Phase 2 and our Hulhumalé real estate guide.
Phase 3: reclamation
Reclamation of Hulhumalé Phase 3, roughly 63 hectares, was carried out by Maldives Airports Company Limited (MACL), which began work in November 2025. Reports during 2026 tracked progress from about 87% to 98% complete, and the government announced completion around the middle of the year, though dates differ between reports. Land then needs settling, roads, utilities and services before homes can be occupied.
Phase 3: housing
Affordable flats
- In July 2026, the government was reported to have contracted five local companies to build about 1,000 affordable units in Phase 3 under a public-private partnership, on a 30-month timeline, for eligible applicants under the family housing programme.
- Earlier, in March 2026, physical work was reported to have started on about 1,224 units in Phase 3 by BML's affordable housing subsidiary, as part of the Maldives Monetary Authority's affordable housing scheme, to be allocated on a rent-to-own basis with completion targeted around mid-2028.
BML's wider programme covers more than 3,200 units across Hulhumalé and Villimalé, with plans to reach about 3,800, and potentially 5,000 if other banks join. Read BML's affordable housing projects and BML advances housing scheme.
Land plots
Phase 3 also includes residential plots for the national housing scheme. Reports mention several plot sizes, with around 698 plots in one allocation and up to 1,351 plots overall; the numbers differ by source. Plot holders will build their own homes, which takes time and money. Read designing a home on a 1,250 sq ft plot.
The Urban Island and Eagle Hills
A separate area of Hulhumalé, often called the Urban Island, was earlier set aside for an international financial centre linked to a Qatari investor, reported at USD 8.8 billion. That project did not progress and the government said it was being rescoped.
In October 2026, Housing Minister Dr Abdulla Muththalib shared a video saying that Eagle Hills would build 5,000 three-bedroom flats on the Urban Island before starting work on Rasmalé. According to the minister, the flats, estimated at USD 400–500 million, would be paid for from the state's 10% share of Rasmalé sales, which he projected at USD 3 billion. The government had not confirmed that Eagle Hills would develop the entire island, and no completion dates were given.
Eagle Hills is also linked to Rasmalé, where a dispute over 99-year leases has been reported. Read our Ras Malé guide and Ras Malé housing applications.
What this means for buyers
For families waiting for housing
Phase 3 and the Urban Island are where many of the homes promised under national schemes are expected to be built. If you applied in 2026, follow official lists and announcements; allocations, handover and payment terms will come later. Read Hiyaa flats explained.
For private buyers
For sale nowFrom MVR 3.6M1+1 Bedroom Apartments at Bayfancy · HulhumaléThousands of new affordable homes add supply to the greater Malé market over the next few years. That should give families more choice and may ease pressure on rents, especially for 2- and 3-bedroom flats. Private flats in good, well-located buildings should remain in demand, but older and poorly maintained flats may face more competition.
For investors
- Rental market: as families move into new homes, rental demand may soften in some segments. Choose flats that will still stand out: lift, parking, good management, near schools and transport. See rental yields.
- Commercial: new residents need shops, cafés, clinics and services. Early commercial space in new neighbourhoods can do well once occupancy rises. See commercial real estate in Hulhumalé.
- Buying allocated homes: social and affordable homes usually come with resale and letting restrictions. Never pay for an allocation without confirming that a transfer is allowed. Read HDC leases in Hulhumalé.
Questions still to be answered
Several important details have not yet been made public, and buyers should watch for them:
- Prices and payment terms for the Phase 3 affordable flats. The national scheme sets out two routes, rent-to-own for households earning under about MVR 60,000 a month and subsidised bank financing for higher earners, but unit prices have not been announced.
- Allocation lists: who receives which homes, and when.
- Resale and letting rules for affordable units. A housing bill before parliament would make sub-letting social housing an offence.
- The Urban Island agreement with Eagle Hills: scope, timing, and how flats would be allocated or sold.
- Infrastructure funding for roads, schools and utilities in the new areas.
When these details are published, we will update our guides. In the meantime, treat headline unit numbers as plans rather than homes you can count on.
Lessons from earlier phases
Earlier Hulhumalé phases show that new areas take time to feel like neighbourhoods. The first residents of Phase 2 lived among construction sites, with few shops and limited transport, before parks, schools and services arrived. Social housing blocks also faced problems, from maintenance backlogs to unpaid rent: a World Bank review reported a high default rate on existing rent-to-own projects. Good management and services will decide whether Phase 3 becomes a place people want to live, not just the number of units built.
Timeline realism
Big housing projects in the Maldives often take longer than announced. Contractors, imported materials, financing and infrastructure all affect the pace. The 30-month and mid-2028 targets reported for Phase 3 flats are targets, not guarantees. If you are deciding between renting now and waiting for a scheme home, plan for delays.
Infrastructure to watch
- Roads and bus routes linking Phase 3 to the rest of Hulhumalé and the Sinamalé Bridge.
- Schools and health facilities; the master plan includes many new schools.
- Utilities: power, water and sewerage capacity.
- Shops and services for daily needs.
Our guide to the best Hulhumalé neighbourhoods for families shows how established areas compare.
How it fits the wider picture
Hulhumalé Phase 3 is one of several new housing areas around Malé, alongside Gulhifalhu, Giraavaru and Rasmalé. Together they could add tens of thousands of homes. Read Gulhifalhu and Thilafushi, Giraavaru housing and our October 2026 market report.
What to do now
If you applied for housing, keep your contact details current and watch for official lists. If you are a private buyer, use the coming years of new supply to negotiate, and focus on quality buildings. If you are an investor, look at areas that will serve the new residents. Browse current properties for sale in Hulhumalé while the new phases take shape.
Frequently asked questions
What is Hulhumalé Phase 3?
Hulhumalé Phase 3 is a newly reclaimed area of Hulhumalé, around 63 hectares, reclaimed by Maldives Airports Company Limited from late 2025. It is being used for affordable housing and land plots under government schemes.
How many homes are planned in Phase 3?
Reports describe about 1,000 affordable units contracted to local companies in July 2026, plus around 1,224 units being built by BML's affordable housing company, alongside several hundred residential plots. Figures vary between sources.
What is the Hulhumalé Urban Island?
It is an area of Hulhumalé once set aside for a financial centre. In October 2026 the Housing Minister said Eagle Hills would build 5,000 three-bedroom flats there before starting work on Rasmalé. The government has not confirmed full details.
Can I buy a flat in Phase 3 now?
Most Phase 3 homes are being allocated through government housing schemes to eligible applicants. Private resale may become possible later, subject to scheme rules.
