New 1,000-Unit Housing Project to Slash Social Housing Waiting Lists

The Maldivian government has awarded contracts to five local firms to construct 1,000 affordable housing units in Hulhumalé Phase III, a move designed to significantly reduce the state's social housing waiting list. Minister of Infrastructure, Housing and Urban Development Dr. Abdulla Muththalib announced the initiative, noting that increasing the supply of affordable homes will provide an alternative for families currently stuck in government queues. To ensure the project serves its intended purpose, the Minister confirmed that the homes are reserved exclusively for first-time homebuyers. This restriction prevents the units from being acquired as investment assets, ensuring they reach families who can afford home loans but currently lack available market options. According to Dr. Muththalib, every unit sold through this scheme directly reduces the demand for state-assisted social housing by transitioning eligible families into private homeownership. The 1,000 units will be sold via the government’s Family Housing Programme, with a projected completion timeline of two and a half years. Pricing for the apartments is capped to maintain affordability. Two-bedroom flats, measuring approximately 700 square feet, will be priced up to USD 116,731. Three-bedroom units, exceeding 950 square feet, will have a maximum price of USD 149,157. The Minister highlighted that these new developments will feature superior building finishes and enhanced outdoor spaces compared to previous housing projects. Beyond providing shelter, the project serves as a strategic investment in the local economy. By awarding contracts to five local companies—each tasked with building 200 units—the government aims to strengthen the capacity of Maldivian construction firms in delivering large-scale infrastructure. However, the Minister noted that the country's high housing demand means foreign expertise will likely remain necessary for future developments. This initiative represents a shift toward empowering the middle-income bracket to exit the social housing system, thereby freeing up state resources for those in the most critical need of assistance.