New Real Estate Bill Opens Door for Landowners to Profit from Plots

A new real estate bill submitted to the People's Majlis paves the way for landowners to enter the real estate business by developing their plots or combining them with neighbouring land, according to Clause 7 of the proposed legislation. Under the bill, a Development and Sales Rights agreement must be established between the landowner and the developer, and this agreement must be registered at the Property Authority. The agreement must include details of the land, the period being allocated, the rights of both parties, and the schedule on which the work will proceed. The greatest benefit for the landowner is the provision of properties under the developed project without any expense. The bill also sets out rules and principles for giving properties to owners in such projects and determining the amounts that can be given. If a project is carried out by combining lands, the number of properties received by landowners will be determined in proportion to the size of the land they contributed relative to the total area of the combined land. The legislation comes as the government continues to allocate plots under the Binveriya scheme, with more than 9,000 plots planned from Hulhumalé, Giravarufalhu and Gulhifalhu, and further plots to be allocated from Rasmalé, which is being developed by the current government. Handover of land has begun to parties who received plots in Hulhumalé Phase 3 under the Binveriya scheme, with 698 plots to be released from the newly reclaimed area in Hulhumalé. The article notes that while a small amount of land remains, land reclaimed by the state at great expense cannot always be given away free, and building an economy that can bear such a financial burden is a distant effort. It also highlights the lack of financial capacity among plot recipients to build housing. With the new law, the government aims to open opportunities for private businesses to become stronger and for many to enter the real estate business, assuring that the industry will progress and that people will receive various types of housing.