The administration of President Dr Mohamed Muizzu has transferred key parcels of land to the Bank of Maldives (BML) to facilitate the development of 3,000 affordable housing units. The initiative, structured to minimise immediate government expenditure, will be executed through a lease-to-own model overseen by the bank’s dedicated housing subsidiary.
Dr Abdulla Muththalib, Minister of Construction, Housing and Infrastructure, said the land transfer was enacted to implement President Muizzu’s housing policy, which seeks to ensure that every Maldivian family has access to adequate and affordable housing.
The minister underscored the strategic necessity of the project’s structure, citing the economic challenges inherited by the current administration. While previous governments typically relied on loans to finance large-scale housing developments, the present administration faces significant obstacles in securing new financing due to the debt burden left by its predecessors and the fragile state of the national economy.
“Due to the substantial debt accrued by the previous administration, we have encountered difficulties in securing financing in all aspects,” Minister Muththalib stated.
In response to these limitations, the government developed a housing policy aligned with President Muizzu’s pledge to guarantee the right to housing for every citizen, tailored to individual financial affordability. “Consequently, President Dr Muizzu’s government focused on formulating a housing policy consistent with his pledge: to guarantee the right to housing for every Maldivian citizen, commensurate with their financial affordability,” the minister said.
To support the policy’s implementation, the government transferred land to BML at no cost. This arrangement enables the bank to price the new units comparably to those offered under existing government housing schemes.
Minister Muththalib also acknowledged the cooperation extended by the current BML management, noting that such support had not been forthcoming from previous bank leadership toward earlier administrations.
The development agreement was signed during an official ceremony, with Minister Muththalib representing the government and Hassan Sham, Managing Director of Affordable Home Leasing Pvt. Ltd., signing on behalf of BML’s housing subsidiary.
The project falls under the National Housing Affordability and Accessibility Project, a Cabinet-endorsed initiative aimed at expanding access to affordable housing. Under the scheme, financial institutions are tasked with constructing housing units and offering them to the public through a lease-to-own model.
Of the total units, 300 are designated for Villimalé, while 2,700 will be built in Hulhumalé across two phases, Phase I and Phase II. Allocation will be determined according to criteria set by BML and offered to applicants participating in government-announced programmes.
To ensure compliance with Maldives Monetary Authority (MMA) regulations, BML established a specialised subsidiary, BML Affordable Home Leasing Pvt. Ltd. Mohamed Shareef, CEO and Managing Director of BML, affirmed the bank’s leadership role in the scheme, noting that while all banks are mandated to participate, BML, as the national bank, felt a particular responsibility to lead.
Shareef highlighted the financial advantages of the model, explaining that government provision of land substantially reduces land acquisition, financing, and development costs. These savings are expected to translate into significantly lower rental rates for prospective homeowners.
“The housing units will be financed by the Bank and constructed through qualified and experienced developers, under a lease-to-own model for first time homeowners,” Shareef said.
He added, “The Bank will carry out this project so that individuals can become homeowners through a structured and affordable process. Residents can lease the property while making monthly payments, and upon the completion of these payments, the ownership of the property will be transferred to the resident.”
Shareef further affirmed BML’s commitment to the timely completion of the project, citing the bank’s reputation for efficient execution. BML currently accounts for 52 percent of the total value of loans disbursed nationwide, underscoring its central role in the country’s financial infrastructure.