BML Launches Lease-to-Own Housing Project to Tackle National Affordability Crisis

The Bank of Maldives (BML) is entering the national housing market with a non-profit-driven mission to address the country's acute affordable housing shortage. BML's CEO and Managing Director, Mohamed Shareef, stated the bank's participation in the government's housing initiative is aimed at solving a major social problem, not generating profit. BML established a dedicated subsidiary company in October last year to manage housing projects, following policy changes that allow banks to participate in this sector. Shareef highlighted the rapid launch of construction as a significant achievement, crediting strong policies and leadership. The initiative seeks to leverage the banking system to support national development and citizen welfare. The project employs a lease-to-own model, a first for a Maldivian bank, enabling families to make affordable monthly payments without substantial upfront costs. This model is part of the broader Inclusive National Affordable Housing (INAH) initiative by the Maldives Monetary Authority (MMA). BML is already supporting housing through other schemes. Under the government’s Hiyaavehi scheme, the bank reduced the equity requirement from 20 percent to 5 percent. The scheme offers soft loans of up to USD 194,500, with USD 136 million allocated so far. Through its subsidiary, BML Affordable Home Leasing Company, the bank is developing a total of 3,260 housing units. Construction partners include China Machinery Engineering Corporation (CMEC), Chinese company BUCG, and local firms Amin Construction, FW Construction, and Rasheed Carpentry and Construction (RCC). The foundation stone for 1,224 units being built by CMEC in Hulhumale’ Phase III was laid on March 21 in a ceremony presided over by President Dr. Mohamed Muizzu.