The Maldives, the smallest country in Asia with a land area of only 298 square kilometres, has faced decades of housing challenges. Limited land availability, combined with rapid urbanisation, has created severe housing shortages.

A World Bank report published in 2022 revealed that 74 per cent of households in Malé live in rented accommodation. The same report highlighted that, nationally, about 10.4 per cent of households have more than three members sharing a single room.

For many Maldivians, rising living costs have made home ownership increasingly out of reach, often repeating the struggles endured by previous generations. Nevertheless, owning a home remains a vital aspiration, as it allows individuals to build equity, achieve financial stability, and take control of their future, rather than continually diverting income towards rent.

Since assuming office, President Dr Mohamed Muizzu has made housing a top national priority, addressing the crisis both in the Greater Malé Region and across the atolls. The President has announced a series of initiatives designed to ensure that every Maldivian citizen aged 18 and over has access to a “first home,” whether in the form of a house or a flat. These plans extend beyond the capital, with housing projects announced for 57 islands, to be financed either through contractor arrangements or State funding.

The Administration accelerated the development of 4,000 Fahi Dhiriulhun Corporation (FDC) flats under the Gedhoruveriya Scheme in Hulhumalé Phase Two. President Dr Muizzu has personally inspected the progress of these developments, underlining his commitment to delivering meaningful results for citizens.

Alongside this, residential land reclamation is progressing with the ambitious Rasmalé project, which is planned as an eco-friendly city. Once completed, Rasmalé is projected to be three times larger than Hulhumalé, including Hulhumalé Phase Two, with reclaimed land raised to a height of 2.5 metres to ensure long-term climate resilience.

In addition, the President announced that 85 hectares from Gulhi Falhu, with a bridge connection, and 50 hectares from Giraavaru Falhu will also be reclaimed to address the housing crisis in the Malé region. He noted that these combined efforts would deliver 65,000 housing plots or flats, offering a lasting solution to the shortage of homes in the Greater Malé area.

Beyond the capital, new housing projects are being launched across several islands, including Haa Alifu Hoarafushi, Haa Dhaalu Hanimadhoo, Alifu Dhaalu Mahibadhoo. By ensuring that people can access housing without needing to migrate to Greater Malé area, the Government aims to achieve a more balanced distribution of the population and ease urban congestion.

In addition to construction, the Government has introduced financial support mechanisms to make home ownership more accessible. An agreement has been signed with the Bank of Maldives (BML) to provide loans under the Hiyaavahi financing scheme, which supports both home construction and completion. The scheme is structured into three categories: the Rahvehi Scheme, tailored for residents of smaller islands, offers loans of up to MVR 1 million with no equity requirement; the Saharu Scheme provides financing of up to MVR 3 million for those living in urban centres; and the Fahi Malé Scheme, designed for the Greater Malé Region, offers loans of up to MVR 6 million.

The financing terms under the Hiyaavahi scheme are highly favourable, with a five per cent profit rate, significantly lower than prevailing market rates, and structured in accordance with Islamic finance principles.

Importantly, the Administration has worked to include groups historically excluded from housing programmes. The introduction of the National Fishermen’s Register has enabled fishermen to access credit facilities, including home loans.

Taken together, these efforts represent the most comprehensive housing campaign in Maldivian history: sweeping infrastructure, social housing, affordable finance, and geographic inclusivity through land reclamation and island-level projects. President Dr Muizzu has reiterated his commitment to improving the overall living conditions of Maldivians, giving reassurance that the Government will continue to work diligently to ensure every citizen has a place to call home.