Maldives allocates MVR 3 billion for housing in 2027 budget

The government has allocated MVR 3 billion for housing projects in its proposed 2027 state budget, including MVR 750 million to support homebuyers and people seeking to build houses through housing loan assistance schemes.

Minister of Finance and Public Enterprises Hassan Zareer announced the allocation on Thursday while presenting the MVR 59.7 billion budget to Parliament.

Zareer said addressing housing difficulties remained a government priority, with projects being implemented across the Maldives under the supervision of President Dr Mohamed Muizzu.

He described housing shortages as one of the main concerns facing Maldivians and said the government intended to provide long-term solutions.

"MVR 3 billion has been allocated for this purpose in the 2027 budget. These projects will provide a comprehensive solution to overcrowding in the Greater Malé region," Zareer said.

The minister also highlighted the difficulties faced by people who own land but lack the financial resources to construct homes.

He said MVR 750 million had been included in the housing allocation to provide equity assistance through loan schemes for people seeking to purchase or build their first homes.

"This will help many families realise their dream of owning a home," he said.

The government has introduced the National Home Ownership Programme, comprising two schemes designed to provide financial assistance to people seeking to build or purchase homes.

The Ministry of Housing and Infrastructure has signed a memorandum of understanding with four financial institutions to implement the Help to Build and Help to Buy schemes.

Both schemes provide government assistance towards the equity contribution required to obtain housing finance.

The Help to Build scheme is intended for landowners who do not have adequate housing and require financial assistance to construct a home.

Under the scheme, the government will provide equity assistance to eligible applicants seeking bank loans for residential construction.

The programme covers inhabited islands in Malé and the atolls, excluding Hulhumalé, Vilimalé, Gulhifalhu and Giraavarufalhu.

Eligible applicants can receive up to MVR 200,000 in government assistance towards the equity requirement of a housing loan of MVR 1 million.

For jointly owned family land in Malé, where several owners intend to construct a building, the government will provide equity assistance of up to MVR 200,000 per person, subject to a maximum of MVR 1 million.

Applicants who obtain loans exceeding MVR 1 million based on their building plans and bills of quantities will still be eligible for a maximum government contribution of MVR 200,000 per person.

The assistance will be provided as a non-repayable grant. However, recipients who sell the property within 20 years will be required to repay the government contribution.

The Help to Buy scheme will provide financial assistance to people purchasing homes, including affordable housing units and properties sold at market prices.

Under the affordable housing component, eligible buyers can receive up to MVR 250,000 towards purchasing a housing unit priced at MVR 1.5 million.

The scheme applies to affordable housing units developed through public-private partnerships (PPPs) and operates separately from the Hiyaavehi housing scheme introduced in 2024.

The government will also provide assistance of up to MVR 250,000 to eligible first-time buyers purchasing residential units sold at market prices through real estate developments.

Under this arrangement, the financial institution will transfer the government assistance directly to the property developer.

The contribution will be deducted from the total amount payable by the buyer, reducing the amount the purchaser needs to finance.

The two schemes form part of the government's efforts to expand access to homeownership and address housing shortages across the Maldives.