Statistics published by the Finance Ministry show that 89 percent of record funds earmarked for housing in last year’s state budget were left untouched despite the budget being hailed by the government as a “housing-centric” budget.
President Dr. Mohamed Muizzu, who served as the Housing Minister for seven years, specialized last year’s state budget for housing. One of his biggest electoral pledges is to provide housing for everyone above 18 years of age within his five-year term.
A historic MVR 1.8 billion was earmarked for housing projects in the 2025 state budget, passed by the PNC-supermajority Parliament, marking the largest allocation to date. However, statistics publicized by the Finance Ministry show that the majority of the budget was left untouched at the end of the year.
In this regard, only MVR 204.5 million of the record housing budget was utilized, accounting for 11 percent, leaving 89 percent untouched.
Notably, lack of housing is one of the biggest issues faced nationwide.
President Muizzu, a civil engineer, previously served as the housing minister from 2012 to 2018, making him the longest-serving housing minister in Maldivian history. During his presidential campaign, he promised to resolve the country’s housing crisis by the end of his term.
Speaking during a ceremony held on the day of budget presentation – President Muizzu hailed 2025’s budget as a “housing-centric’ budget.
The Maldives has a population of some 500,000 people, including its migrant population. While the country has hundreds of islands, most of the population is concentrated in the greater Male’ area, with the capital, Male’ City, ranked the fifth most densely populated island on Earth. Many of the people in Male’ live on rent in cramped but expensive apartments.
The housing crisis has also been linked to multiple other social issues, such as low birth rates and rising aging population.