Maldives Construction Sector Grows 3.7% as Bank Lending Surges by 13%

The Maldives' construction industry has solidified its role as a primary driver of national economic growth, recording a 3.7 percent expansion over the past year. According to the latest annual report from the Maldives Monetary Authority (MMA), this growth reflects robust activity across resort development, residential construction, and various real estate projects. Financial institutions have shown strong confidence in the sector's trajectory. Commercial banks increased lending to construction and real estate by 13 percent during the reporting period, with overall bank loans to the industry maintaining a steady 10 percent growth rate. This influx of capital indicates sustained institutional support for the nation's development objectives. The surge in financing was primarily driven by the development of new resorts, housing initiatives, and diverse real estate projects across the archipelago. These investments serve a dual purpose: expanding the critical tourism infrastructure that fuels the economy while simultaneously addressing the urgent domestic demand for housing. Data from the MMA highlights a fluctuating but generally upward trend in real estate. The sector registered a 5.3 percent growth in 2024, followed by 3.1 percent in 2025. While imports of construction materials dipped by 7 percent in 2024, they surged by 11 percent in 2025, signaling an intensification of active development projects across the islands. Despite this momentum, the industry faces headwinds from global volatility. Geopolitical tensions in the Middle East have triggered supply chain constraints for essential materials and pushed up the cost of key inputs. In response, the government is currently consulting with industry stakeholders to develop mitigation strategies and ensure the continued stability of the sector.