The government’s recently announced affordable housing programme places first-time homebuyers and family stability at the centre of national policy, marking a decisive break from past real estate strategies, according to Dr Abdulla Muththalib, the Minister of Construction, Housing and Infrastructure. The announcement came as the administration invited contractors to build 1,000 new flats in Hulhumalé Phase III.
The project will be spread across five parcels of land, each accommodating 200 flats, with 70 percent designed as three-bedroom flats to meet the needs of growing families. Officials have set a demanding timeline, requiring completion within 30 months. For years, housing policy relied on two models: social housing financed through borrowing and commercial real estate projects managed by the Housing Development Corporation. While these ventures offered a limited supply of flats at controlled prices, they ultimately fell short of broader social objectives.
“Despite the government’s earnest efforts to provide adequate shelter, the prevailing real estate development model did not afford sufficient priority to first-time homebuyers,” the minister said. “Consequently, a substantial proportion of the apartments offered at controlled prices were ultimately acquired by individuals seeking lucrative investment opportunities or rental income, rather than by the families who genuinely required new homes.”
Under the current administration’s ‘Boahiyaavehikan Emmenah’ policy, first-time buyers are now the priority. The Housing Ministry has called for contractors to construct 1,000 ‘Affordable Home Ownership’ flats under a public-private partnership. Pricing ceilings have been set at USD 116,746.27 for two-bedroom flats and USD 149,162.56 for three-bedroom flats. The project is reserved for companies with 100 percent Maldivian ownership, reinforcing domestic participation. Minister Muththalib framed the policy as an effort to stabilise families, reduce financial vulnerability, and strengthen the nation’s socio-economic fabric.