Practical construction work has officially begun on five affordable housing projects led by the BML Affordable Home Leasing Company in Hulhumalé, marking a significant step forward in easing housing pressure across the Maldives.
The projects form part of a broader national effort to expand access to homeownership, particularly for first-time buyers. While two residential towers had earlier been awarded to international construction firms, Beijing Urban Construction Group (BUCG) and China Machinery Engineering Corporation (CMEC), the latest phase brings local expertise to the forefront.
Bank of Maldives has awarded construction contracts for three additional projects to leading Maldivian firms Amin Construction, FW Construction, and RCC. The inclusion of local contractors reflects a deliberate push to strengthen domestic industry participation while maintaining international construction standards.
According to BML, all contractors were selected through a rigorous evaluation process that adheres to governance and risk management guidelines set under the Maldives Monetary Authority’s Inclusive National Affordable Housing (INAH) scheme. This framework is intended to ensure transparency, financial sustainability, and long-term affordability.
Over 3,200 Homes Planned Across Key Locations
Once completed, the five projects are expected to deliver more than 3,200 housing units across Hulhumalé Phase 1, Hulhumalé Phase 3, and Villingili. The flats will be offered at comparatively lower rates through a lease-to-own model, allowing residents to gradually gain full ownership after completing their lease payments.
BML says the scale of the development is designed to bring meaningful relief to the growing demand for housing, particularly in urban areas where space and affordability remain pressing challenges.
“With the commencement of these five projects, Bank of Maldives and BML Affordable Home Leasing Company demonstrate their commitment to supporting national housing goals, increasing the participation of local industries, and enabling residents to become homeowners through a sustainable and affordable financial system,” the bank said in a statement.
Lease-to-Own Model Backed by Government Support
The housing units are being developed under the National Housing Affordability and Accessibility Project, with the support of the Ministry of Construction, Housing, and Infrastructure. Under this arrangement, the flats will be made available exclusively through a lease-to-own mechanism, a model aimed at reducing the upfront financial burden on buyers.
Minister of Construction, Housing, and Infrastructure Dr. Abdulla Muththalib has previously highlighted that the land allocated for these projects was provided to BML free of charge under the MMA’s inclusive housing scheme. This measure, he explained, was taken specifically to ensure that the final cost of the housing units remains within reach for ordinary Maldivians.
Minister Muththalib also clarified that the flats will be awarded to applicants selected through a government-announced housing program. Successful applicants must meet both the eligibility requirements set by the government and the financing criteria established by the bank.
At a land handover ceremony held on November 13 last year, the minister praised Bank of Maldives for its role in the initiative. He described the collaboration as an unprecedented level of cooperation, noting that previous bank managements had not engaged in housing projects of this scale with the government.
The affordable housing projects are a key component of the government’s wider strategy to align the financial sector with social development goals. By combining regulatory support, government-backed land provision, and bank-led financing, the initiative aims to create a sustainable pathway to homeownership.
As construction gets underway, expectations are high that the project will set a new benchmark for public-private collaboration in addressing one of the Maldives’ most persistent social challenges.
