A new Real Estate Bill submitted to Parliament seeks to bypass constitutional protections by introducing a "surrender and re-grant" model, effectively allowing foreign entities to hold land leases in perpetuity despite the 99-year constitutional limit.
Article 89 of the government-sponsored bill stipulates that leaseholds for apartments and properties within designated special zones can be sold to foreigners for 99 years. When a foreign buyer purchases a property from a master developer, they do not inherit the remaining balance of the existing lease.
Instead, upon surrendering the previous lease to the government, the authorities are required to issue a new 99-year lease directly to the buyer. According to Article 78(b) of the bill, these re-granted leases will remain valid even if the master developer’s term expires.
Under this model, foreign buyers are granted full authority to resell the property to other parties or use it as collateral for bank loans. This arrangement is a calculated move to circumvent constitutional safeguards and facilitate indefinite foreign land ownership through a cycle of perpetual renewals.
The government, however, frames the move as a necessary and significant reform aimed at easing and incentivizing the real estate market.
The legislative proposal follows a period of official silence regarding the specifics of the arrangement. However, a recently leaked audio recording features Housing Minister Abdulla Muththalib admitting that properties under the Rasmalé project are being sold on a "perpetual 99-year" basis.
During a meeting with religious scholars in September, Muththalib explained that the government is introducing a special mechanism to ensure investor assets do not depreciate. He revealed that a fee would be charged upon each resale, at which point a fresh 99-year lease would be issued to the new owner.
The massive $12 billion Rasmalé development project is conducted in partnership with the UAE-based company Eagle Hills, which involves the allocation of 500 hectares of land.
The move to amend the law to allow foreign entities indefinite access to land reclaimed for Maldivian housing has sparked calls for a national referendum, with critics labelling it a major threat to national security. Opposition parties and members of the public have expressed outrage, citing concerns over the settlement of non-Muslims in the Maldives and the close ties between Eagle Hills Chairman Mohamed Alabbar and Israel.
