Real Estate Bill Submitted to Parliament, Allows 99-Year Leases for Integrated Zones

A new Real Estate Bill has been submitted to the People's Majlis, proposing that land designated as an Integrated Real Estate Zone may be leased to a master developer for a maximum period of 99 years. The bill was introduced on behalf of the government by Ahmed Aifan, MP for Henveiru North Constituency, and is expected to have its first reading in today's afternoon session. The bill aims to develop the country's real estate sector sustainably, establish transparent and accountable principles for the business, register developers, protect property buyers, and monitor sector activities. It calls for the creation of a Property Regulatory Authority under the Housing Ministry, to be headed by a Chief Executive Officer appointed by the President on the advice of the Housing Minister. According to the bill, land in an integrated real estate zone may be leased only to wholly government-owned companies, majority state-owned firms, joint ventures, consortia, wholly Maldivian-owned companies, wholly foreign-owned companies, or companies jointly owned by Maldivians and foreigners. Leasehold rights for properties within these zones can be sold for 99 years under a Surrender and Re-grant model. The bill also includes prohibitions consistent with Islamic Shariah: no business facilitating gambling, no display of slogans or ceremonies of religions other than Islam, and a ban on the import, sale, or use of condoms and contraceptive devices within the zone. Priority must be given to Maldivian businessmen, contractors, and service providers during development, and employment preference must go to Maldivians. Land registration in such zones is limited so that no single nationality holds more than 25% of the total land. Foreign buyers will not gain citizenship rights through property purchase. The bill also requires that detailed leasing information be submitted to the Anti-Corruption Commission (ACC) and the Ombudsman Office. This development follows the government's earlier decision to lease 500 hectares from Rasmalé to UAE's Eagle Hills for the Maldives Water Front and Marina project. The project is expected to attract over $30 billion in foreign investment, create approximately 54,000 jobs, and generate $2 billion annually from tourism.