Housing Minister Abdulla Muththalib said last night that the government will issue a new lease agreement each time a property developed by the UAE’s Eagle Hills in Rasmalé is sold.
Muththalib signed the agreement to sell Rasmalé to Eagle Hills on September 21. The project has faced scrutiny over its execution because it has not disclosed project details transparently.
In a statement released on the day of the signing, Eagle Hills noted that while Rasmalé is initially leased for 99 years, a new 99-year lease term would commence every time a property is resold.
The Minister’s remarks did not contradict the developer's statement. Muththalib explained that while an individual owner cannot extend their lease beyond 99 years, the buyer would receive a new lease if the property is sold. However, he did not clarify whether this lease would be for a full 99-year term.
"To ensure a permanent source of revenue for the state, the previous leaseholder must surrender their lease without any compensation from the state. Once the lease is surrendered and cancelled, the state will charge a fee and issue a new lease to the buyer," Muththalib said.
Maldivians need to buy Rasmale' after 99 years to reclaim land, reveals Muizzu
President Muizzu clarified that properties in the Rasmalé development are sold on 99-year leases. Owners must sell their properties back to the government at the end of the term or if they wish to sell earlier. This contradicts previous claims that ownership would be perpetual, as the state retains ultimate control over the land.
Furthermore, the Minister’s comments appeared to diverge from statements made on Tuesday by President Mohamed Muizzu, who suggested that property owners in Rasmalé must sell back to the government. Muththalib clarified that the government would instead act as an intermediary in such transactions.
"When someone comes to buy a property, the state intervenes to verify whether the buyer is approved or suitable. The state approves the transaction, levies a charge based on the land and property value, and then authorises the sale," the Minister explained.
