Maldives Cabinet Approves National Housing Affordability and Accessibility Project

The Government of the Maldives has taken a major step toward addressing the nation’s long-standing housing challenges. On October 5, 2025, the Cabinet of Ministers approved the National Housing Affordability and Accessibility Project, a landmark initiative aimed at improving access to affordable homes and strengthening the housing market across the country.

According to a statement from the President’s Office, the project seeks to create a sustainable and long-term solution to the Maldives’ housing shortage, while ensuring that housing remains accessible and affordable for citizens of all income levels. The plan emphasizes both private sector participation and government-led policy support, marking a new era in national housing development.

Key Goals of the Project

The National Housing Affordability and Accessibility Project outlines several core strategies designed to make housing more attainable for Maldivian families:

Encouraging Private Sector Development
The project will open new opportunities for real estate developers to build affordable housing units at their own expense. In return, developers will benefit from special government concessions and incentives to promote cost-effective construction and sustainable urban growth.

End-User Mortgage Financing
A new mortgage scheme will be introduced in collaboration with local banks and financial institutions. This initiative aims to make home ownership more achievable by providing accessible financing options for individuals purchasing housing units under the project.

Lease-to-Own Model
In partnership with financial institutions, the government plans to offer a lease-to-own model—allowing citizens to move into homes while gradually paying toward ownership. This approach ensures greater financial flexibility for families and individuals.

Government Purchase and Allocation of Units
The state will purchase a portion of housing units from participating developers and allocate them to eligible beneficiaries who meet established social and financial criteria, ensuring fair distribution to those most in need.

A Legal Framework for Implementation

To ensure transparency and long-term success, the Cabinet also approved the inclusion of project-related provisions in the upcoming Housing Bill, currently under review by the People’s Majlis. This will establish a clear legal foundation for implementation, monitoring, and public accountability.

A Step Toward a More Inclusive Housing Market

The National Housing Affordability and Accessibility Project represents a transformative milestone in the Maldives’ housing sector. By combining government oversight with private sector participation and accessible financing options, the initiative aims to reduce the housing gap, stabilize property prices, and promote equitable urban development across all regions of the Maldives.

As the Maldives continues to grow, this project signals the government’s commitment to inclusive development, ensuring that every Maldivian has the opportunity to own or access a safe, sustainable, and affordable home.