The Maldivian government has introduced a revised framework for the development of 1,000 affordable housing units in Hulhumalé Phase III, rolling out a series of concessions aimed at encouraging greater participation from local contractors.
Details of the updated policy were published in the Government Gazette, outlining key changes to financing requirements, project structure and eligibility criteria.
One of the most significant revisions is the removal of the requirement for contractors to demonstrate full project financing upfront. Instead, bidders will now be allowed to submit a letter of comfort from a financial institution confirming the total value of the project.
Officials say the change is intended to lower entry barriers and make it easier for more local companies to compete for the project.
The updated framework also includes exemptions on import duties for construction materials associated with the project, reducing overall costs for developers.
In addition, adjustments have been made to buyer insurance requirements, while new provisions allow increased flexibility in forming joint venture partnerships.
The housing development will be divided into five packages of 200 units each. Under the revised rules, a single contractor can be awarded up to 400 units, a move aimed at balancing competition with project efficiency.
Eligibility criteria stipulate that participating companies must be fully Maldivian-owned. All construction will be carried out under a design-and-build model, placing responsibility for both planning and execution on the contractor.
Authorities say the policy shift is designed not only to accelerate housing delivery but also to strengthen the domestic construction sector by building capacity among local firms.
The project will feature a mix of two-bedroom and three-bedroom apartments. Prices have been capped to maintain affordability, with three-bedroom units set at a maximum of USD 149,000 and two-bedroom units capped at USD 116,700.
Following the policy revisions, the government has extended the deadline for proposal submissions. Interested contractors now have until 31 March to apply, compared to the earlier deadline of 23 March.
The Hulhumalé Phase III housing initiative forms part of the government’s broader strategy to address housing demand while promoting private sector growth in the construction industry.
